would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc.. 
Home
please share your views...
CITK CITW CITH
Total cash assets 2033mn 123mn 791mn
Total liabilities -887mn -2457mn -578mn
Net cash assets +1146mn -2334mn +213mn = -975mn
If they inject cash to CITW from CITK,CITH, then CITW total liabilities will be -975mn(reduce by 59% so it will make 86mn as finance cost for next financial year against 211mn current year’s finance cost= reduced by 125mn)
CITW:
CITW currently manage 5 star level 150 rooms with lower occupancy ratio. But they are reported growth rates range between 32%- 50% for last 2 quarters.
CITW 2014 2015
Gross profit 225mn 491mn (118%)
We can expect at least 35% growth for 2017. It will be 662mn or above.( min+171mn)
CITH:
CITH 2014 2015
Gross profit 212MN 232MN (10%)
So we can expect 10% for 2016 financial year. It will be 255mn(note: they closed the operation for refurbishment last qtr)
CITK:
There are no revenue from CITK. So we can consider as 0 profit for the period.
Expenses:
Administration expenses CITW CITH CITK total
2015 295mn 122mn 0 417mn
2016(assume cost reduce by20%) 0 350mn 0 350mn
Three managements are going to be one single management that also benefit for the acquisition.
operating expenses+ selling and distribution/marketing expenses
CITW CITH CITK TOTAL
168MN 57MN 0 225MN
After the acquisition
CITH
Profit for the period = gross profit-admin expenses -selling and marketing expenses-finance cost
(662+255) -350 -225-86mn= 256 mn
After the acquisition
No of CITH shares = 210mn
So EPS will be 256/210 = 1.22/-
If we buy CITK @ 5/- before the acquisition, then our CITH cost will be 12/-
So future CITH's PE will be 12/1.22= 9.8
NOTE: They can get more benefit from dollar appreciation and lower interest rate,tourist growth,occupancy growth additionally.
CITK CITW CITH
Total cash assets 2033mn 123mn 791mn
Total liabilities -887mn -2457mn -578mn
Net cash assets +1146mn -2334mn +213mn = -975mn
If they inject cash to CITW from CITK,CITH, then CITW total liabilities will be -975mn(reduce by 59% so it will make 86mn as finance cost for next financial year against 211mn current year’s finance cost= reduced by 125mn)
CITW:
CITW currently manage 5 star level 150 rooms with lower occupancy ratio. But they are reported growth rates range between 32%- 50% for last 2 quarters.
CITW 2014 2015
Gross profit 225mn 491mn (118%)
We can expect at least 35% growth for 2017. It will be 662mn or above.( min+171mn)
CITH:
CITH 2014 2015
Gross profit 212MN 232MN (10%)
So we can expect 10% for 2016 financial year. It will be 255mn(note: they closed the operation for refurbishment last qtr)
CITK:
There are no revenue from CITK. So we can consider as 0 profit for the period.
Expenses:
Administration expenses CITW CITH CITK total
2015 295mn 122mn 0 417mn
2016(assume cost reduce by20%) 0 350mn 0 350mn
Three managements are going to be one single management that also benefit for the acquisition.
operating expenses+ selling and distribution/marketing expenses
CITW CITH CITK TOTAL
168MN 57MN 0 225MN
After the acquisition
CITH
Profit for the period = gross profit-admin expenses -selling and marketing expenses-finance cost
(662+255) -350 -225-86mn= 256 mn
After the acquisition
No of CITH shares = 210mn
So EPS will be 256/210 = 1.22/-
If we buy CITK @ 5/- before the acquisition, then our CITH cost will be 12/-
So future CITH's PE will be 12/1.22= 9.8
NOTE: They can get more benefit from dollar appreciation and lower interest rate,tourist growth,occupancy growth additionally.
