CVC) RECOMMENDATION @ $1.87 ST: BUY LT: OUTPERFORM BCM
KEY POINTS:
o NTA rises sharply
with strong Sunland
price.
o Now trading at a
substantial discount
to NAV & its peers.
Year to 30/6 06(A) 07(E) 08(E)
Profit Adj($m) 23.3 30.1 39.8
PE (x) 10.0 8.1 8.1
Yield (%) 3.2 6.4 6.4
Franking (%) 100 100 100
Target Price: $2.90
Net Tangible Assets Update – With the
substantial increase in price for Sunland (SDG) to
$4.20, the net asset value (pre-tax) of CVC has
increased to $2.20 ps, as outlined in the table on
right. This values Cellnet at current market value &
CVC’s interest in Mercury Mobility from the
demerger & rights issue at cost.
As CVC marks to market its listed & some private
equity investments, the increase in Balance Sheet
value is offset by an increase in deferred tax
provision. Adjusting for this provision &
Intangibles, the NAV & NTAV have increased to
$2.02 & $1.97 respectively.
At $4.20, SDG comprises 37.3% of Net Assets (pre-
tax). Every 10 cent change in the SDG price,
results in a 1.4¢ ps change in CVC net assets.
We remain positive on CVC, expecting strong
growth over the next few years, based on
expansion of existing operations & utilisation of
funds raised to broaden increase their highly
successful operations, currently trading at a
substantial value discount to its NTAV, peers and
the general market.
Net (Tangible) Asset Calculation
Item $m
Cash 120.0
Listed investments 206.8
Private Equity 33.0
Other 24.2
Total 384.0
less Debt 0.0
Net Assets (Pre-Tax) 384.0
Deferred Tax -36.9
Net Assets (post-tax) 347.0
less Intangibles -8.6
Net Tangible Assets (post-tax) 338.4
Issued Capital 171.9
Net Asset value ps Pre-tax 2.23
Net Asset Value ps Post-tax 2.02
Net Tangible Asset Value ps Post-tax 1.97
Disclaimers. SHAW, & its wholly owned subsidiary Shaw Corporate Finance Pty Limited, was a
participant in the recent placement in CVC, for which they received a fee. SHAW, its associates,
employees & authorised representatives have an interest in the financial products of the CVC.
SHAW & its wholly owned subsidiary Shaw Corporate Finance Pty Limited, has been appointed Lead
Underwriter for Mercury Mobility, for which they will receive a fee. SHAW, its associates, employees
& authorised representatives have an interest in the financial products of the Company.
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Last
$2.06 |
Change
0.000(0.00%) |
Mkt cap ! $212.6M |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 10000 | $1.85 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$2.06 | 10000 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 8000 | 2.600 |
1 | 1000 | 2.590 |
1 | 16000 | 2.580 |
1 | 50780 | 2.530 |
1 | 1000 | 2.490 |
Price($) | Vol. | No. |
---|---|---|
2.650 | 5000 | 1 |
2.780 | 1886 | 1 |
0.000 | 0 | 0 |
0.000 | 0 | 0 |
0.000 | 0 | 0 |
Last trade - 16.17pm 25/11/2024 (20 minute delay) ? |
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