Sino's top line is consistently falling, with revenue declining 24% and 26% the past two years. Do you not consider this to be an important factor when looking at Sino as a net-net play? Curious how you're consider cash flow in these situations.
Sino is a property developer and their property development business has taken a massive hit due to the Hong Kong property market crash. Take this fall in revenues and profits as trough sales and profits and then go look at 2018/2019 numbers for peak numbers and then try to ex prolate yourself where you think the numbers might be after a recovery in the property market.
I wish I knew enough to comment. I try and stray away from smaller ADRs because of the associated risk but I don’t know anything about xnet unfortunately
Another question with regards to Sino. I see yoy 22-23 it increased share count by roughly 5% and 23-24 by roughly 6% (actually increasing the amount of shareholder dilution). When considering a company like sino as a high yield bond, do you take this into account? Effectively, it seems to me that the dividend is nearly entirely wiped out by shareholder dilution.
So I took a long time looking into this and honestly it’s really really confusing. The management has net cash so it’s apt to expect that they would use that to pay for any acquisition rather than share dilution. The dilution definitely has happened but the management and their family keeps buying more shares despite getting diluted themselves and also I can’t really find any track record of any meaningful acquisition in the last few years. Overall it’s really confusing and one to keep an eye on definitely if the dilution continues then this might be a dealbreaker.
Kind of unrelated to this post, but what do you think of TME (Tencent Music Entertainment)? Have you done any research on it?
They trade around a 25x PE with 25% growth rate in their music revenue segment, and have faced declining live-streaming revenue due to Chinese gov crackdown.
Hi Bobby sorry for the late reply I’ve been a bit sick. I don’t have much of an opinion on TME. I have no idea what their live streaming business is going to look like. Also I fear that Bytedance, Kuaishou etc might release their own music streaming service making the market similar to the movie tv show streaming market in China with multiple players competing for market share. I’d rather just own Tencent and own their entire universe of companies.
Sino's top line is consistently falling, with revenue declining 24% and 26% the past two years. Do you not consider this to be an important factor when looking at Sino as a net-net play? Curious how you're consider cash flow in these situations.
Sino is a property developer and their property development business has taken a massive hit due to the Hong Kong property market crash. Take this fall in revenues and profits as trough sales and profits and then go look at 2018/2019 numbers for peak numbers and then try to ex prolate yourself where you think the numbers might be after a recovery in the property market.
What do you think to XNET? It is extremely cheap, trading at a negative enterprise value
I wish I knew enough to comment. I try and stray away from smaller ADRs because of the associated risk but I don’t know anything about xnet unfortunately
Another question with regards to Sino. I see yoy 22-23 it increased share count by roughly 5% and 23-24 by roughly 6% (actually increasing the amount of shareholder dilution). When considering a company like sino as a high yield bond, do you take this into account? Effectively, it seems to me that the dividend is nearly entirely wiped out by shareholder dilution.
So I took a long time looking into this and honestly it’s really really confusing. The management has net cash so it’s apt to expect that they would use that to pay for any acquisition rather than share dilution. The dilution definitely has happened but the management and their family keeps buying more shares despite getting diluted themselves and also I can’t really find any track record of any meaningful acquisition in the last few years. Overall it’s really confusing and one to keep an eye on definitely if the dilution continues then this might be a dealbreaker.
Kind of unrelated to this post, but what do you think of TME (Tencent Music Entertainment)? Have you done any research on it?
They trade around a 25x PE with 25% growth rate in their music revenue segment, and have faced declining live-streaming revenue due to Chinese gov crackdown.
Hi Bobby sorry for the late reply I’ve been a bit sick. I don’t have much of an opinion on TME. I have no idea what their live streaming business is going to look like. Also I fear that Bytedance, Kuaishou etc might release their own music streaming service making the market similar to the movie tv show streaming market in China with multiple players competing for market share. I’d rather just own Tencent and own their entire universe of companies.
Keep going, great food for thought!