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  • The Haney Group Comments On Property Buying As Taiwan Lifts Restrictions

    The Haney Group looks at recent developments with the lifting of strict rules for property holding by Insurance companies as the Taiwanese Government starts a buying spree led by Fubon Life Insurance Co.

    The Haney Group a boutique equity research and management firm based in Hong Kong founded by a diverse private wealth consortium of financial professionals, with a combined knowledge of the stock markets, tax legislation, legal compliance and market analysis. Priding themselves in giving the very best service to their institutional investors, high net worth individuals and private investors today commented on Taiwanese companies, in particular insurance providers having had a long history of diversification into commercial properties on the island nation.

    This market has slowly been shrinking for investors as government controls limit rent increases in commercial buildings and strict regulation on capital to asset ratios have seen profit margins decrease in most areas. With the lifting of some of these regulations, new life has entered the sector with many of the largest investors undertaking large-scale acquisition strategies.

    Fubon Life Insurance Co, itself owned by Fubon Financial Holding Co, is the second largest such Taiwanese financial company by asset value and is the first to respond to the changes by announcing an investment plan of up to $3 billion in overseas property purchases over the next 5 years. The move is aimed to capitalize on offshore properties where Fubon expects to achieve between 4-5 percent margins on returns as opposed to some of its Taiwanese holdings that are limited to only 3 percent primarily in the North of the country.

    "The easing of the regulations on insurers holding property especially overseas has come at a very opportune time for the industry, the largest of these companies has more than enough capital to meet the lower standards and the ability to seek out the best performing assets absent artificial controls will see their bottom lines rise accordingly. When you also look at the lowered overall property values on offer at the moment they can and will treat it as a buyer's market," commented David Roberts, the Senior Vice President of Mergers and Acquisitions at The Haney Group.

    Taiwan's real estate investment had risen 13 percent in 2012 to be valued at $10.3 billion, 40 percent of which was handled by the country's insurers before the tightening of regulations. With news of the approval for renewed investment by larger insurers, Fubon saw its share value gain 3.2 percent bringing its ROI for the year to date to 36.69 percent. With Fubon's increased assets of more productive properties set to increase by nearly double from 5-10 percent of their total value, most analysts forecast continuing increases in returns for the company's shares.

    "While it wouldn't be accurate to say that the restrictions on insurers have had an adverse effect, a quick look at performance by the larger entities like Fubon disproves that notion, they certainly have been having a breaking effect on growth. Now that Fubon and others are free to pursue higher returning properties overseas in select cities, it is not unreasonable to expect increased growth and revenue rates. We will of course continue to track the performance of Fubon and her competitors ensuring that we have all the information to best advise our clients," added David Roberts, the Senior Vice President of Mergers and Acquisitions at The Haney Group.

    Oct 16 1:08 AM | Link | Comment!
  • The Haney Group Advise Clients On IJM Offerings

    The Haney Group are informing clients on IJM Corp as the diversified Malaysian building group announced plans that it may offer some assets to investors.

    The Haney Group a boutique equity research and management firm based in Hong Kong founded by a diverse private wealth consortium of financial professionals, with a combined knowledge of the stock markets, tax legislation, legal compliance and market analysis. Priding themselves in giving the very best service to their institutional investors, high net worth individuals and private investors today made comment to investors in relation to Malaysia's second largest builder by market value IJM Corp.

    IJM has revealed plans that it may seek to boost its share value by allowing investors access to some of its more profitable ongoing concessions by means of initial public offering as a business trust or straight sale. The Selangor based company has used this approach in recent times with favorable outcomes for its share value and capital raising exercises. Teh Kean Ming the company's CEO made a statement to say they have intentions to monetize the value of some of more mature route concessions in Malaysia and commented to say that it was too early to predict which assets they may use, awaiting valuation from the investing fraternity.

    The most recent examples of this being the sale in March of the company's 36 percent shareholding of the Trichy toll way in India for a profit of $15 million, followed shortly thereafter by the disposal of their equity stake in Kuantan Port operations. Infrastructure business such as these accounted for around 10 percent of the company's overall revenue and as such is expected to be facilitated among those offered to investors.

    "Diversified is an often over used term people use to describe companies, but with IJM it's an apt one, more so with regards to their infrastructure holdings and concession equity stakes, it is easy to overlook the real value they present. Any IPO that combines these together will be much sought after by savvy investors as to put the same package together bit by bit would be daunting and wouldn't present the good returns expected," announced David Roberts, the Senior Vice President of Mergers and Acquisitions at The Haney Group.

    The Haney Group analysts see IJM utilizing any capital raised through equity and asset sell offs to be used to boost the company's expansion in both property and building as well as the oil and gas sector, acquisitions both of which have been favorite purchases for the company over the last twelve months. The building company has had a strong year to date generating return on investment of 14 percent easily outperforming the Bursa Malaysia KLCI index's gains of 5.3 percent.

    "A lot of the strength held by IJM has come from it being involved from the early start up stages, holding equity in their concessions. The market is progressively getting harder to enter unless you are directly involved in the projects and it is increasingly hard to obtain equity let alone diverse stakes. Any chance to pick up equity either directly or as part of an IPO is of great interest to investors and we will be following the details closely as they come to light for our clients," added David Roberts, the Senior Vice President of Mergers and Acquisitions at The Haney Group.

    Sep 05 2:45 AM | Link | Comment!
  • The Haney Group Advise Clients On L'Oreal Buy

    The Haney Group is looking closely at L'Oreal SA as the world's largest manufacturer of cosmetics buys Magic Holdings Intl Ltd of China.

    The Haney Group a boutique equity research and management firm based in Hong Kong founded by a diverse private wealth consortium of financial professionals, with a combined knowledge of the stock markets, tax legislation, legal compliance and market analysis. Priding themselves in giving the very best service to their institutional investors, high net worth individuals and private investors today focused on the purchase of one of China's largest beauty care companies and maker of the number one selling facial mask brand in the country by L'Oreal which comes at an opportune time for the cosmetics giant.

    L'Oreal, which has recently seen a diminishing demand for its products and reached a slowing pace throughout the globe following the latest period of economic downturn will now expand in to a market that is outpacing sales growth, the company has entered the Chinese beauty care market which is expanding by 8 percent a year, a rate far out performing L'Oreal's own growth. By purchasing Magic Holdings for $843 million, L'Oreal gains access to China's $34 billion a year beauty and cosmetics market. This market is growing rapidly alongside China's burgeoning middle class in the nation of 1.3 billion people making it the most highly lucrative market for this sector. One of the brands purchased under the deal is the 10-year-old MG line, which accounts for 26.4 percent of all sales of facial masks within the country.

    "This was a very strategic move by L'Oreal to buy Magic Holdings International Limited, they have missed sales estimates for the last two years and now they have gained immediate access and existing revenue streams in the fastest growing market on the planet for their products. The acquisition will bolster their presence in this highly lucrative market with product line's ranging in the low to mid end fitting well with the growing economy as consumer spending increases in the region, the markets are a good representation, judging them accordingly in trading," announced David Roberts, the Senior Vice President of Mergers and Acquisitions at The Haney Group.

    Magic Holdings, which has a network of 288 distributors in 32 provinces within China, has reported excellent results this year led by their MG branded beauty products boosted further by the latest acquisition. MHI's stock had prior to the purchase gained 50 percent this year on the back of strong results and this was further enhanced as news of the sale pushed its value by a further 19 percent to HK$5.99. L'Oreal's share value also advanced by 0.5 percent to 129.55 EUR, bringing the company's gains to 23 percent so far for the year with further gains expected to follow.

    "With the latest acquisition by L'Oreal they have yet again demonstrated why they're the number one cosmetics maker and with rumors of a second company buyout on the horizon they will be able to firmly secure their foothold within China guaranteeing to reach the company's target for the year ending. This latest acquisition has brought a lot of attention and is increasing our confidence that L'Oreal will become a lucrative cosmetics company within the region and is expected to offer investors a lot of new opportunities that will return good profits, we shall continue to monitor them closely on our client's behalf," added David Roberts, the Senior Vice President of Mergers and Acquisitions at The Haney Group.

    Sep 01 3:54 AM | Link | Comment!
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