Wednesday, 24 August 2011

FA - ARA

Based on latest FY2011 1H report
  • AUM grows to 18.8B (current) from 9.4B (2007) (it might not be easy to double again.)
 Based on 2007 to 2010,
  • HK 超人 as backup. around 13% from ARA's website.
  • Good ROE, ROA. consistent earnings due to its interesting business model
  • Little or no debt
  • Consistent +ve FCF
  • Current dividend around 3.6%
  • Valuation - fair. PE around 15.4, enterprise value/EBITA around 12.8 for FY2010. Given the potential bear market, could wait longer for cheaper valuation around $1 to enter. $1 gives PE around 10.9 and enterprise value/EBITA around 8.9. Of course, ideal will be PE <10.
(Disclaimer: This is not buy call, just my personal opinion.)

0 comments:

Post a Comment