No worry! Ole Supermarkets are owned by The China Resource (Holdings) co. ltd which is one of Comvita's shareholders
https://en.crc.com.cn/whoweare/ourle...corporateteam/
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No worry! Ole Supermarkets are owned by The China Resource (Holdings) co. ltd which is one of Comvita's shareholders
https://en.crc.com.cn/whoweare/ourle...corporateteam/
Ha ha …NZX guided Comvita to drop the ‘multimillion’ and replace it with ‘significant’
Dashed my hopes of zillions of extra sales …the significant part seems to be more around the ‘philosophically significant’ matters than ‘commercially significant’
If nothing else given Dave something to rave about
Jeez, buying a Singapore outlet
And EPS increase of 22%
Share price should hit $4 plus on this news
http://nzx-prod-s7fsd7f98s.s3-websit...170/397829.pdf
I did read this right didn’t I
This acquisition will be immediately accretive to Comvita with a HoneyWorld forecasted 24% increase in return on capital employed (ROCE) once integrated. For the Comvita group this acquisition is forecast to deliver a 22% improvement in EPS. HoneyWorld is forecasting revenue in FY24 of over SG$13M
(NZ$15.85M).
A big step up
Does sound interesting, indeed. And hey - one amazing opportunity is chasing the other. Maybe they found the plug and managed to pull it?"
Good as well they don't put all their eggs into the Chinese basket. Singapore is a great market: well off, health conscious, but not that much impacted by Chinese political power games.
Still not quite sure, how much the business will be worth long term, but I expect the share might be ready to climb another hype mountain. Whether they manage to stay in higher altitudes will depend as well on the Manuka game (just don't get this ~ on top of the u) and - unfortunately - the NZ bee weather. Their long term PE (25.4) and their long term CAGR (-2) does not sound that exciting, but sure - the future will be different: sweet and sticky.
So acquisition of $10.36m will generate an EPS increase of 4 cps (was 18.2 eps in 2022 so 22% = 4 cps) which equates increased NPAT of $2.8m.
Taking into consideration it's debt funded so say 6% (so interest cost of $625,000) and tax of 28% means EBIT of $4.5m from HoneyWorld!
So CVT is buying HoneyWorld on an EBIT multiple of 2.3X? Or ROI of 43.5%!
What an outstanding acquisition!
Question - why would the Singaporeans sell at that kind of giveaway price?
Sooner than later,there could be demand for defensive stocks wolrd wide. Comvita is pretty sensible with its use of debt. It seems they are going to take bit risk to boost shareholder value. Future earnings will drive stock prices.
This has dropped all the way from $11.50 in 2016 to below $ 3 in 2023. Now it has rebounded to $3.23. Very interesting scenario . Some say trend is friend.