原来ST James 是FJ Benjamin的女儿。FJ Ben不是卖服装的吗？怎么有个发电厂女儿啊？
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FJ Benjamin (FJB SP: S$0.825) BUY (Maintained)
More cash returns?
FJB announced the listing of its associate, St. James Power Station through
a reverse takeover. The RTO is targeted for completion by 1Q 2008. FJB's
30.4% stake is valued between S$24.3m – S$32.8m, depending on the financial
performance of St. James. Post listing, FJB's stake will be reduced to
25.2% with potential for further dilution upon a subsequent placement.
Maintain BUY with price target of S$1.03.
Listing of St. James Power Station. FJB's 30.4% owned St. James Power
Station (SJPS) – the 70,000 sq ft multi-concept entertainment centre, an
amalgamation of nine theme clubs located – is seeking listing via a reverse
takeover of JK Technology Group (JK Tech), a Sesdaq-listed IT company. The
consideration of the RTO could range between S$80.0m – S$108.0m, depending
on SJPS' ability to meet its cumulative net profit guarantee of S$16m for
FY08 & FY09 with a performance incentive of 68.4m shares at 17.55 cents
each if cumulative net profit is above S$18m. The RTO is targeted for
completion by 1Q 2008.
More cash returns? FJB's 30.4% stake is worth between S$24.3m – S$32.8m,
implying S$0.04 – S$0.06 per share based on the valuation of the RTO. Upon
completion, FJB's stake in SJPS will be diluted to 25.2%. However, the
subsequent placement of new shares to meet the free float requirement could
potentially rake in more cash and further dilute FJB's stake in SJPS.
Currently at a net cash position and generating positive operating cash
flow, we believe FJB could likely to return further excess cash to
shareholders.
Maintain BUY. As the RTO is targeted for completion by 1Q 2008, we are
maintaining our forecast and target price of S$1.03.
