Wednesday, December 21, 2022

Thakral, a gem under the rubble?

Note: vested interest

Never heard of it? Is a singapore listed company with distrubution and real estate business.

Maybe u should take a look too and tell me what u think?

Some interesting facts:

1) 7.5 +- yield, that is backed by it's dividend policy of 2 half yearly payout of 2 cents. It is broken only in 2020

2) The distribution business has turnaround and with China also opening up, the longer term trend makes tailwinds more than headwings.

3) Hit the jackpot with its 50-50 JV with Gemlife, which has been developing retiree homes for the above 50 in Australia for almost a decade. It is going from strength to strength, and there is failed attempt to merge living stone and Gemlife and to attract a new investor for a 1.billion stake. Although Thakral clarfied the australia news article price tag of 1billion is "indicative", and the deal has been called off, a comparison with its existing market capitalisation suggest a wide discrepancy.

4) Company did a partial offering in 2019 to raise its stake to 50.2 percent at low ball target, of 50. Cents, then just 11 percent prenium to then WAP.  It restarted shares buyback above 50 cents recently. It has not done any shares buyback in years

It is purely my speculation that the company might be privatised. But if is not, a 7.5 yield seem like a good deal to me, especially if the dividends never exceeded the company Net profits and is stated as a formal dividend policy. In short, the dividende seem sustainable.

Merry Christmas and Thakral you, i mean Thank you for reading.

Have a festive year end