the lands are sold to Pacific Trustees/KIP Reit and then rented back from KIP Reit. The 45M from the disposal will be used for working capital of its existing business; raw materials and staffs expenses. And the net gain from the disposal is 470k. 244M borrowings due within 12 months, 110M cash eq and 277M receivables. Its really tight based on the assumption that HIB can recover these 277M in time.

The crucial point here is related party transactions, Jason. Dato Ong has lots of companies that he is controlling. As such, you have to pay attention to related party transactions (RPT/RRPT) instead of just looking at corporate announcement on the surface. And the impact/benefits to the particular company. Consider reading the recurrent related party transactions disclosed in the annual report too.

understood, jason, wong. its going down since announcement of luckin coffee; distribution if you will. as for the RPT, monetize the assets into 45M for working capital, net gain of 470k from the disposal and rented it back from KIPreit for the next 12 to 15 years which translates to ~5M rent per year aka operating lease.

Bought it at lower thirties previously and sold out when it spikes above 0.43 back in Jun'24. Not much has changed since then from the balance sheet perspective. The only change is the RPT and Luckin Coffee. I would say no margins of safety at this price. Will have to wait how will Hexind fund the Luckin Coffee business; capex intensive, high revenue low margins business?

mostly RPT investment instead of new business venture over the last few years, JQ. Hextar Fertilizers and Hextar Mitai. The recent disposal is also RPT. Didn't notice any capex ppe investment on existing business to scale it up either. Doubt will see any growth near term. Luckin Coffee is new business venture though. It will be interesting to observe the source of funding for Luckin Coffee and its margins to decide whether it will be a growth asset for Hexind in the future. Could be challenging for now given the competition in coffee shops and Luckin Coffee's historical business model. Hence, safer to have margins of safety for now without the results from Luckin Coffee venture. just my opinions, could be wrong. hope it helps.