Members Login
Username 
 
Password 
    Remember Me  
REITData -> TalkStock -> SGX - Stocks -> K1 Ventures
Post Info TOPIC: K1 Ventures
tfwee


Veteran

Status: Offline
Posts: 581
Date:
RE: K1 Ventures
Permalink  

K1 announced that it has invested US$4,450,250 in China Auto I Co-Investors LLC, a Delaware limited liability company. China Auto will co-invest with Newbridge Asia Advisors IV in China Grand Automotive Group Limited, which is controlled by the Guanghui Group and its Chairman Sun Guangxin. China Grand Automotive was formed to expand an existing automobile dealership platform of the Guanghui Group, which is among the leading automobile retail business in six China provinces, namely Xingiang, Guangxi, Henan, Anhui, Guangdong and Jiangsu.

__________________
Fortune favors the Bold
KK


Guru

Status: Offline
Posts: 1236
Date:
Permalink  

BT, Published February 8, 2007

k1 Ventures posts loss of $2.2m for Q2 on FX setback

THE weakness of the greenback caused a foreign exchange loss of $9.7 million for Keppel Corporation's investment associate k1 Ventures in its financial second quarter ended Dec 31, 2006. This, in turn, led to net earnings loss of $2.2 million on the back of a one per cent gain in revenue to $101.1 million. The foreign exchange loss was associated with the proceeds from the sale of Hawaii-based The Gas Company (Gasco) to Macquarie Gas Holdings for US$268 million, comprising a cash consideration of US$238 million and a working capital adjustment of US$30 million.

Compared to last year, group operating profit improved by 19 per cent to $21.8 million for the second quarter and 58 per cent to $49.5 million for the half year ended Dec 31, 2006. k1 Ventures said the improved revenue and operating profit was mainly due to increased contributions from Helm Holding Corporation and Mid Pac Petroleum, LLC. Higher interest income and gains from the disposal of two portfolio investments also boosted revenue and operating profit for the half year.

Despite the foreign exchange setback, the group achieved a profit before tax for the half year of $21 million, representing a 104 per cent increase over the corresponding period last year. Net earnings for the six months to end December fell 30 per cent to some $10.7 million or 0.56 cents a share while turnover was $222.6 million, 15 per cent higher than the previous corresponding period.

Excluding the foreign exchange loss, the group's profit before tax for the second quarter and half year increased by 102 per cent and 188 per cent respectively over the corresponding periods in the previous financial year.

The company noted that excluding the contribution from Gasco and the effect of the foreign exchange loss, profit after tax and minority interest from continuing operations increased by 112 per cent and 267 per cent respectively for the second quarter and half year, reflecting the improved operating results of the group.

On prospects for the second half, k1 Ventures said that it expects its operating subsidiary in retail gasoline operations will continue to contribute positively to the results of the group. 'The transportation leasing operations is expected to contribute positively to the group but it is anticipated that its results will be impacted by the slowdown in home building and the warmer weather causing a lower demand for coal transportation in the second half of the year,' the company said.

It added that the sale of its investment in Good Technology, Inc, was completed in January 2007, and expects to record a pre-tax gain of about $3.1 million in the third quarter.

__________________
KK


Guru

Status: Offline
Posts: 1236
Date:
Permalink  

BT, Published June 9, 2006

k1 Ventures gains $145m from Gasco sale

Completion of deal likely to boost FY2006 earnings

INVESTMENT company K1 Ventures said yesterday it has completed the sale of The Gas Company (Gasco) in Hawaii for a gain of S$145 million. The company, an associate of conglomerate Keppel Corp, sold Gasco to Macquarie Gas Holdings for a total US$268 million, comprising a cash consideration of US$238 million plus a working capital adjustment of US$30 million. The S$145 million gain from the sale is after the repayment of existing debt relating to Gasco and the payment of closing costs but is subject to the determination of relevant taxes, k1 said.

Gasco was acquired by k1 in August 2003. It is Hawaii's only publicly regulated full service gas energy company and is the dominant supplier of liquefied propane gas and gas-related products and services in the state.

The intention to sell Gasco was first announced in August 2005, but regulatory approvals had to be obtained for the transaction.

The Gasco sale is expected to boost k1's earnings for the financial year ending June 30, 2006. 'The transaction is in line with the company's objective of investing in companies with the potential for growth and value creation, and subsequently unlocking value through exit strategies that realise maximum investment returns,' k1 said. As part of its long-term strategy, k1 Ventures will continue to be pro-active with the current investments and seek to enhance value,' it added. k1 invests in a wide range of assets across sectors.


In its third financial quarter ended March 2006, k1's net profit fell 53 per cent to S$9.06 million while revenue declined 24 per cent to S$162.3 million. The company said the decrease in revenue and profit was due to the sale of its ownership interest in Semco and other investments.



__________________
KK


Guru

Status: Offline
Posts: 1236
Date:
K1 Ventures - Kim Eng
Permalink  

Extracts fm Kim Eng Report dated 10-Feb-06,

Record profits in sight


  1. 1H06 results in-line. 1H06 earnings came in at S$16.2m, a drop of 43% y/y as the preceding period reflected divestment gains from two major investments: the sale of K2 and K-Mc Venture which reaped total gains of $28m. Notable points of 1H06 results included Helm’s (k1’s latest acquisition) maiden PBT contribution of S$9m in 1H06 and S$3.2m gain from sale of an investment. While k1’s quarterly earnings have historically been lumpy due to the uneven timing of divestments, this does not detract from the undervaluation of its investment portfolio.
  2. Sale of Gasco on track. The sale of Gasco will realize proceeds of S$401m; the transaction is expected to close by June 2006. Following the sale, k1’s coffers will rise by around S$200m after factoring in debt repayment and taxes, which will provide fresh capital for new investment opportunities. Meanwhile, Gasco continues to contribute positively with earnings of S$10m in 1H06.
  3. Robust outlook for education and rail businesses. Significant upside resides in KUH, in which k1 has a 12.2% stake. Through a series of acquisitions, KUH has emerged as the largest early childhood education provider in the United States, 4x larger than the number two player, Bright Horizons, which itself commands a market cap of around US$1b. Similarly, Helm is poised to ride on a multi-year up-cycle in the rail industry, benefiting from both supply and cost constraints in the US trucking industry.
  4. MMR: Energy sector update. MMR’s gas reserves rose to 82bcfe of natural gas equivalent at end 2005, an increase of 64% over 2004. From 2Q06 onwards, production levels are projected to rise to 60 mmcfe because of new discoveries at 5 wells. These positives will continue to enhance portfolio value in our view.
  5. RNAV target intact; buy maintained. Our RNAV target for K1 remains at $0.49/share. The headline interim results are less meaningful in our view as K1 is an investment holding company; focus on the embedded value within. Buy maintained.


__________________
KK


Guru

Status: Offline
Posts: 1236
Date:
K1 Ventures
Permalink  

Added in Q106 Results in StockPick blog

__________________
KK


Guru

Status: Offline
Posts: 1236
Date:
K1 Ventures - Q106 Results
Permalink  

Extracts fm Q106 Results,


  • EPS = 0.07cts
  • NAV = $0.34

REVIEW OF GROUP PERFORMANCE

The Group recorded total revenue of $153.9 million in the first quarter of FY2006 (1Q FY2006), representing an increase of 94% over 1Q FY2005. Profit attributable to shareholders for 1Q FY2006 was $6.6 million, an increase of 79% over the prior corresponding period. Earnings per share increased to 0.35 cents from 0.20 cents, marking a 75% increase over 1Q FY2005. Group EBITDA was $39.6 million, representing an increase of 235% over the prior corresponding period.

The improved results for 1Q FY2006 were mainly attributable to contributions from (i) Helm Holding Corporation (Helm), the Group’s transportation leasing operations; (ii) Mid Pac Petroleum, LLC, the Group’s retail gas operations in Hawaii (Mid Pac); and (iii) The Gas Company, LLC (GASCO).

The Group recorded contributions from Helm since the completion of the acquisition of the company on 8 July 2005, and a full quarter’s results from Mid Pac compared to one month in the prior corresponding period as Mid Pac was acquired in September 2004. Correspondingly, raw materials, consumables, staff costs and other operating expenses for the first quarter also increased compared to 1Q FY2005.

Depreciation and amortisation in 1Q FY2006 increased substantially following the acquisition of Helm. Due to the accounting treatment for GASCO as a “Discontinued Operation”, no depreciation charge was taken subsequent to the announcement of the sale in accordance with accounting standards. This resulted in an increase of approximately $0.7 million in profit attributable to shareholders.

The increase in interest expense in 1Q FY2006 was due mainly to the acquisition financing of Helm. The Group’s share of result of associated companies in 1Q FY2006 represented earnings from Helm’s joint ventures and associated company.

PROSPECTS

Following the acquisition of Helm, the Group has grown into a sizeable diversified investment company with total assets of $1.68 billion. The proceeds from the sale of GASCO, which is expected to complete by June 2006, will contribute significantly to the Group. It is anticipated that the Group’s continuing operations in transportation leasing and retail gasoline operations will positively impact the results of the Group.

Management will continue to focus on growth and expansion opportunities, and seek additional investment opportunities that are accretive to earnings and cash flow.



__________________
tfwee


Veteran

Status: Offline
Posts: 581
Date:
RE: K1 Ventures
Permalink  

Extracted From Business Times

Published November 2, 2005

k1 Ventures wants to be in hard assets: CEO

Group moving to cut recently acquired subsidiary Helm's debts

MAINBOARD-LISTED investment company k1 Ventures's net profit soared 165 per cent to $56.5 million in 2005 but a larger chunk of this year's bottom line - 63 per cent - stemmed from the firm's investment activity. Last year, investments contributed just 7.5 per cent.

Mr Green: Price controls on oil will stabilise Hawaii unit Mid Pac's margins k1, whose fiscal year ends in June, has investments in the oil and gas, transportation and education sectors.

In August, it announced the sale of The Gas Company of Hawaii (Gasco) to Macquarie Infrastructure Company for US$238 million cash. It also completed in July the acquisition of its largest asset to date - 80.1 per cent of US-based locomotive operator Helm Holding - for $186.3 million cash.

Speaking after a shareholder's meeting last Thursday, k1's chairman and chief executive Steven Green said Helm was 'a business with hard assets' - and k1 wants 'to be in hard assets in a rising interest rate environment'.

'Not only does Helm have market dominance, they are uniquely successful at extending the economic life of their assets,' he said. Helm is the largest leasor of used railcars and other locomotives in North America.

Mr Green also said k1 will retain Helm's 'well established, confident' management but leverage its own relationships in the financial sector to help Helm bring down its borrowing rates, and possibly expand internationally.

The total transaction for Helm was worth US$472 million, or S$796 million, in July, with $233 million funded by equity and another $563 million by debt.

The k1 group's net assets, as per its June 30 balance sheet, were worth $594.7 million.

Of k1's $35.4 million in net income from investing activities in 2005, some $20 million came from the sale in November 2002 of investment in consumer durables firm K2 Inc, and another $8.5 million from the sale of investments in Semco Energy in March this year.

The other income segment, or net profit from operating subsidiaries, came from Gasco and Mid Pac Petroleum, a petroleum retail and distribution firm also in Hawaii.

Mr Green said recent price controls on oil in Hawaii 'make prices more stable toward the upper end of the cap, which will stabilise the volatility of margins', thereby benefiting oil providers like Mid Pac.

Meanwhile, as the sale of Gasco will not be completed until between April and June next year, k1 will continue to record income from its investment in Gasco as part of its own operating income for the next fiscal year, said Wendy Chan, vice-president of finance and operations at k1.

k1 also owns part of McMoran Exploration, which conducts oil and gas exploration in Mexico and the Gulf Coast, as well as 12.2 per cent of the education, health and wellness group Knowledge Universe Holdings.

Mr Green was the US Ambassador to Singapore from November 1997 to March 2001, and before that the chairman and CEO of Samsonite Corporation from 1988 to 1996.

k1 is 36.71 per cent owned by Keppel Corporation, while Temasek Holdings, through its interest in KepCorp and other shareholders, holds a 36.97 per cent stake.

k1 shares closed at 32 cents on Monday, down from their peak of 37 cents at the close of Oct 4 and up from 25 cents on Nov 1 last year.

-- Edited by tfwee at 18:27, 2005-11-02

__________________
Fortune favors the Bold
KK


Guru

Status: Offline
Posts: 1236
Date:
Permalink  

Extracts fm SGX Announcement dated 27-Oct-05,

Performance Overview & Outlook


  • Attributable profit rose 165% to record high of S$56.5m
  • Helm acquisition immediately accretive to earnings and cash flow
  • Positive contribution from Mid Pac acquisition in Sept 04
  • Proposed sale of GASCO to unlock significant embedded gain
  • Continued growth of operating subsidiaries
  • Solid gains from sale of K2, SemcoEnergy and K-Mc Venture
  • Strategic roll-up of education investments into Knowledge Universe
  • Solid mix of operating companies and portfolio companies
  • Acquisition of Helm and successful Helm debt offering has significantly elevated k1’s profile
  • Diversification has reduced risk without sacrifice of earnings or growth

Strategic Initiatives

Acquisition of Helm –Transportation leasing platform


  • Largest independent locomotive and railcar leasing company in North America
  • Completed acquisition of 80.1% interest in Helm in July 2005 at cash consideration of S$186.3 million
  • Total transaction value S$796 million
  • Approximately S$233 million funded by equity
  • Approximately S$563 million financed by debt secured by assets of Helm on non-recourse basis to k1
  • Immediately accretive to earnings and cash flow

Divestment of GASCO


  • Estimated gross cash consideration of approximately S$401 million
  • Transaction projected to be completed in April –June 2006
  • Portion of sale proceeds to repay GASCO’sdebt and divestment costs
  • Sale will provide k1 with significant capital to redeploy

2006 Outlook


  • Helm –oversight and expansion opportunity will be the focus of k1 management.
  • Continuing to look for additional investment opportunities to broaden portfolio and existing platforms
  • Company focus will be on earnings and cash flow
  • Seeking opportunities in new markets
  • Sale of GASCO expected to close in April –June 06
  • Seek growth opportunities for Mid Pac through expansion of existing franchise and/or acquisition


__________________
tfwee


Veteran

Status: Offline
Posts: 581
Date:
BioSensor
Permalink  

Biosensor: ABN Amro initiated coverage on the stock with a “buy” rating, saying the heart stents maker could be a potential acquisition target. Sitting on US$88m cash as at June 30, 2005, Biosensors’ cash flow should remain strong, leaving the company with no need to raise debt for the next few years. According to Reuters data, the firm offers a return on equity of 38% and its shares have more than doubled since the start of the year.

__________________
Fortune favors the Bold
KK


Guru

Status: Offline
Posts: 1236
Date:
BioSensors
Permalink  

SINGAPORE (XFN-ASIA) - Biosensors International Group Ltd may extend gains after ABN-Amro initiated coverage of the drug maker with an "outperform" rating and a fair value estimate of 1.88 sgd. "Biosensors has shown through medical trial results that its drug-eluting stent (DES) BioMatrix is comparable to peers. A 6 bln usd market therefore looks ripe for the picking," ABN-Amro analyst Edwin Goh said in a note. "At current valuations, Biosensors is 13 pct cheaper than closest peer Conor Medsystems, despite having a wider source of revenue, including licensing and royalties," Goh said.


__________________
KK


Guru

Status: Offline
Posts: 1236
Date:
K1 Ventures
Permalink  

A study I'd done on K1 can be found in my blog, StockPick. Extracts,


Comments


As K1 is a venture co., a good way to value the co. would be to look at the NAV. Looking at the past years share price data, it can be seen that the share price in fact track the NAV very closely, usually at most 1-2cts discount to NAV.


After losses in FY01 and FY02, K1 had been profitable for the last 3 years. There had been increasing turnover and improving EPS and ROE during this period. Turnover more than doubled every year from $63Mil to $577Mil, EPS from 0.77cts to 3cts and ROE from 2.91% to 9.5%.


The negative is the decling margins fm 27% to 12%. Another big negative is the large nos. of outstanding warrants and options that may be exercised at a price lower than the current share price. When exercised, it'll dilute existing shareholders' stakes. NAV and EPS will suffer.


Lastly, K1 had paid dividends only once in the past 4 years. I don't expect K1 to be a dividend play due to its nature of biz. I would be most worried if they pay out fat dividends as that means they are no longer working hard to buy new biz to develop. K1 should be viewed as a growth play, with share price going up as the mgmt work hard to enhance their assets.


Conclusions


K1 looks like a well managed co. and had grown rapidly during the last 3 years. If they continue to grow like they did during the past 3 years, it'd be a good long term hold.


The recent announcement of the sale of GASCO is not a for sure done deal. Thus, the share price of K1 had not shot up to the potential NAV level. It may take a few more months for the deal to be finalised.



__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
REITData -> TalkStock -> SGX - Stocks -> K1 Ventures
Tweet this page Post to Digg Post to Del.icio.us


Create your own FREE Forum
Report Abuse 		Powered by ActiveBoard