Actual revenue turns out to be 900+m, an increase of about 150m. The cost of goods sold did not increase much as accordingly. This trickled down to an increase of net profit to 194.187m over 91.356m last year. Perhaps this business is really as efficient as it looks.
Net margin, without considering non-business-operations gain, is now 21.4%. This leapfrogs last year's 12%. However, trade receivables remain worrying. One can only take the words of the management, which I quote:
"There is no concentration of credit risk with respect to trade receivables as there are a dispersed number of financial institutions with high individual credit ratings through which the credit card and installment (sic) sales arrangements are entered into."
The company decided to distribute 15.1 cents of dividend, in view of the company's 15th anniversary. I did not foresee this. The yield would be about 10% given today's closing price.
Diluted EPS is 17.9 cents. Given a PE of 10, the company is worth about 1.79 HKD. This is roughly inline with my estimate.
***
Cash and equivalents is 395.761m
Market Cap is now 1.63B, or specifically, 1635.607200m
Enterprise Value is 1239.8462m
Net Profit is 194,187.
Adjusted Earnings Per Share is 6.4 times and the (conservative) acquirer multiple is 6.384 times. If we were to use EBIT instead, it will be 4.86 times. This company is really, really cheap.
*I have liquidated my current positions at 1.79 HKD, in view of the mounting trade receivables. I was unable to get a response from Investor Relations despite sending emails*
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