MCK - Millennium & Copthorne NZ Ltd - reports.


As expected, due to lockdown the hotel operations profit was significantly reduced (but still profitable). Also as expected, MCKs non-hotel operations (land development and Australian apartment sales) remained very profitable.


Big one time tax boost from changed depreciation tax rules (introduced by government in response to Covid) provides big boost to MCK after tax profits (though has no impact on the “before income tax” results I have listed below)


Important takeaway. For the full year the non-hotel operations are heading for around $33 million in net income.


Add to that the hotel operations which are still generating an operating profit, and the present market capitalization of $286 million looks very cheap (especially when considering hotels will eventually return to higher profitability as Covid impact eventually subsides)


======


For 6 months results ending June 30th 2020.


Net Income: $38.95 million (vs $29.7 million in 2019)
EPS: 21.55c (vs 15.05c in 2019)


Profit before income tax: $26.26 million (vs $41 million in 2019)


Segment profits after tax:


Hotel Operations: $22.8 million ($12.8 million in 2019)
Residential land Dev: $13.75 million ($15 million in 2019)
Residential prop Dev: $2.45 million ($1.75 million in 2019)


Segment profits before income tax:


Hotel Operations: $3.7 million ($17.5 million in 2019)
Residential land Dev: $19.1 million ($21 million in 2019)
Residential prop Dev: $3.5 million ($2.5 million in 2019)


Net Tangible assets: $702 million
NTA per share: $4.44 per share


=====


Current Market cap: $286 million
Current share price: $1.81c