Hap Seng Consolidated, A Very Safe Pick-Up From Here

What an eventful  past 12 months for Hap Seng. The grand plans were great, although there were some hiccups towards the end - it is still a good plan and the less than favourable take up for the "rights issue" meant that the dilution effect would not be so great in the end.





Look at the ex-all adjusted chart of Hap Seng, the stock was moved way too high prior to the announcement of the exercise. Fundamentals are intact, following the recent sell down owing to the Eurozone crisis, Hap Seng is itching to get back to saner levels.




11/10/2011  1.30  1.31 - 1.331.32+0.02 (1.51%) 772,800
12/10/2011  1.32  1.31 - 1.351.33+0.01 (0.75%) 1,842,000
13/10/2011  1.33  1.34 - 1.401.40+0.07 (5%) 3,513,100
14/10/2011  1.40  1.40 - 1.501.48+0.08 (5.40%) 7,485,900


One of the key is looking at volume build up. No one is going to be ballsy enough to buy on 11 Oct with volume of less than 1m. Now the next 3 days would indicate that the engine has started. Timing is critical for value-momentum investing. Looks ripe for a hike back to RM1.65 at least.






Looking at the most recent results, earnings are on track, but the share prices have been volatile. Naturally, the recent big corporate exercise did contribute to that. If you note, the controlling shareholders may be a little tight and we can probably expect "strong interim dividends" for the next few quarters.

SUMMARY OF KEY FINANCIAL INFORMATION

30/06/2011

		INDIVIDUAL PERIOD		CUMULATIVE PERIOD
		CURRENT YEAR QUARTER	PRECEDING YEAR CORRESPONDING QUARTER	CURRENT YEAR TO DATE	PRECEDING YEAR CORRESPONDING PERIOD
		30/06/2011	30/06/2010	30/06/2011	30/06/2010
		$$'000	$$'000	$$'000	$$'000
1	Revenue	958,521	664,517	1,709,868	1,251,697
2	Profit/(loss) before tax	171,132	169,498	316,117	243,443
3	Profit/(loss) for the period	125,805	151,568	235,043	209,006
4	Profit/(loss) attributable to ordinary equity holders of the parent	90,533	132,674	172,707	172,156
5	Basic earnings/(loss) per share (Subunit)	4.82	7.32	9.35	9.49
6	Proposed/Declared dividend per share (Subunit)	3.90	6.00	3.90	6.00
		AS AT END OF CURRENT QUARTER		AS AT PRECEDING FINANCIAL YEAR END
7	Net assets per share attributable to ordinary equity holders of the parent ($$)	4.7100		4.5900