Finding Yield

Quick update on Ranhill Holdings Berhad (a Malaysian conglomerate with interests in power and environment sectors). It has since dropped to RM0.965 from its initial IPO price of RM1.20 per share.

At current price of RM0.965, Ranhill may be trading at implied forward dividend yield of approximately 6.5%, which is a decent yield supported by a stable cashflow profile from its long term concessions. Our desktop analysis is summarised as follows:

Ranhilll

Note on projections & assumptions:

  1. Normalised PAT for FY15 to exclude non-recurring costs relating to initial public offering / RTO exercises;
  2. Assume a lower revenue y-o-y growth rate and PAT margin rate for FY16

*Update*: investors should take note of the on-going negotiation between the Company and its Corporate Guarantors relating to its existing Sukuk programme (shown below). Once the proposed debt-to-equity ratio / covenant has been approved, hopefully we will see more light in terms of future dividend payments by the Company.

Ranhill_Indulgence.png

DISCLAIMER: ALL ARTICLES CONTAINED IN THIS SITE ARE FOR INFORMATION AND ILLUSTRATIVE PURPOSES ONLY AND DOES NOT PURPORT TO SHOW ACTUAL RESULTS. IT IS NOT, AND SHOULD NOT BE REGARDED AS INVESTMENT ADVICE OR AS A RECOMMENDATION REGARDING ANY PARTICULAR SECURITY OR COURSE OF ACTION. SOURCES USED IN THIS SITE HAVE NOT BEEN INDEPENDENTLY VERIFIED FOR ACCURACY. YOU SHOULD SEEK INDEPENDENT AND PROFESSIONAL INVESTMENT ADVICE IN REGARD TO YOUR INVESTMENT DECISIONS. THE AUTHOR MAY HOLD POSITIONS IN THE SECURITIES MENTIONED ABOVE.

Author: Ken Utau

Data Scientist, Markets Analyst and Food Lover

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s