Agria is a potential fourbagger
Quote:
Originally Posted by
Snoopy
Thanks for that Agrainvestor. There is detail in that which was not released in the PGW result. So good to see that come out. China was not specifically mentioned this year. So maybe Agria have now publically admitted they are really only a proxy way of holding PGW shares, using a vehicle listed in the USA?
The reporting currency has now been standardised as USD. NZ shareholders should note that the NZD/USD exchange rate has gone from NZD1 = USD 0.7744 (30th June 2013) to NZD1 = USD 0.8802 (30th June 2014). That means that 13.6% of the prior comparative period 'growth' reported from NZ operations by Agria was due to the NZD/USD exchange rate appreciation over the year.
Converting the dividends received by Agria from PGW during the year at the prevailing exchange rate, those amounted to USD 9.279m. Net profit for all of Agria was USD 5.9m. So it does look like the corporate structure that is Agria is a value losing proposition for Agria shareholders. Such shareholders would continue to be better off owning PGW shares directly IMO.
SNOOPY
Agria Market Capitalisation:
PGW Market Cap:
Agria owns 50.01% and has the Control. Therefore I see Agria as a fourbagger. The China domestic Revenue we see in the 8K, next week.