mark100
02-03-2006, 02:43 AM
APN is a property funds manager that listed last year at $1. Today they closed at $2. They also have a development division that has been wound down although they will continue to offer project management services.
Today they released a H1 profit of $9.13m and increased their full year forecast from $9.6m to $12m. This implies EPS for the full year of 10.4c and puts them on a pe of 19x. Current Market Cap is $230m.
The pe is high however the funds under management are increasing quickly. FUM increased from $1.85b to $2.7b during the 6 months (46% increase). They have 11 different funds, all are unlisted except for the APN/UKA European Retail Trust (AEZ.AEZCA).
They are paying an interim div of 4c and are forecasting a final div of 4c implying a 4% FF yield on current prices.
Based on the rate of FUM growth, I think the revised full year forecast could be conservative. Based on my own back of the envelope figures, I think a FY profit of $15.5m is possible, which would reduce the pe to less than 15. Note that this is just my rough estimate.
So the positives I see are:
Very high FUM growth and therefore profit growth
The FUM business is high margin. Net profit margin was 54% in H1 06
Low capital requirements, and high payout ratio
Low debt levels
Negatives I see:
High PE
Shares have very poor liquidity, not one for the traders
The presentation they released today along with their prospectus from last year will give a better description for those interested.
Mark
Today they released a H1 profit of $9.13m and increased their full year forecast from $9.6m to $12m. This implies EPS for the full year of 10.4c and puts them on a pe of 19x. Current Market Cap is $230m.
The pe is high however the funds under management are increasing quickly. FUM increased from $1.85b to $2.7b during the 6 months (46% increase). They have 11 different funds, all are unlisted except for the APN/UKA European Retail Trust (AEZ.AEZCA).
They are paying an interim div of 4c and are forecasting a final div of 4c implying a 4% FF yield on current prices.
Based on the rate of FUM growth, I think the revised full year forecast could be conservative. Based on my own back of the envelope figures, I think a FY profit of $15.5m is possible, which would reduce the pe to less than 15. Note that this is just my rough estimate.
So the positives I see are:
Very high FUM growth and therefore profit growth
The FUM business is high margin. Net profit margin was 54% in H1 06
Low capital requirements, and high payout ratio
Low debt levels
Negatives I see:
High PE
Shares have very poor liquidity, not one for the traders
The presentation they released today along with their prospectus from last year will give a better description for those interested.
Mark