ROX
6 September 2007Here is a little background info from the PSE Website:
Roxas Holdings, Inc. (ROX), formerly Central Azucarera Don Pedro, was founded in 1927 and was one of the first sugar mills established in the Philippines. On December 11, 2001, the Securities and Exchange Commission approved the change in the company's primary purpose from sugar manufacturing to that of an investment holding company.
Starting off the analysis of ROX brings us to the balance sheet. In the balance sheet we see the following assets which are of interest to us: (For easy reading, i am imputting here the "Panic Amount" or the immediate estimated liquidation value)
Assets:
Cash and cash equivalents - Php 530,400,000.00
Receivables - Php 271,719,500.00
Property, Plant & Equipment - 2,288,694,750.00
Liabilities: (Current and non-current)
Borrowings - Php 724,500,000.00
Current portion of long term borrowings - Php 94,339,000.00
Accounts payable and accrued expenses - Php 599,635,000.00
Income Tax Payable - Php 132,317,000.00
Dividends Payable - Php 15,034,000.00
Customer's Deposits - Php 144,716,000.00
Long Term debts, net of current portion - Php 532,069,000.00
Retirement Benefit Obligation - Php 52,768,000.00
Deferred Income Tax Liabilities - Php 656,212,000.00
Totalling the Assets and decreasing the liabilities from it, we get a net of Php 139,224,250.00
Other assets of ROX include CADPGC and Subsidiaries wherein ROX has a 89.28% equity interest. The equity value of CADPGC in their books is valued at Php 4,129,418,000.00
Assuming an immediate valuation of this equity, I gave a 25% discount to the equity value recorded in the books of CADPGC and multiplied it with the equity stake of ROX to get a value of Php 2,765,058,292.80
Adding this up with the net value from the previous computation and dividing the sum over ROX's outstanding shares (1,114,719,358 shares), we get a per share value of Php 2.60
Take note that like in the previous analysis, there were a lot of other assets that were disregarded.
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