(METHAQ) Methaq Insurance profit for the first half ended June 30, 2008
(METHAQ) Future aspirations of Methaq
Both disclosures are in Arabic. ADX yet again releases them after market opens (time stamp on the fax from Methaq is 05:29 this morning).
I hope one of the future aspirations of Methaq then is to submit disclosures in accordance with ESCA / ADX guidelines - in both Arabic and English .
It looks like the profit statement might say either AED 1,496,336 or AED 1,496,336,000 for 2008 H1. Which would mean an annualised PE of either 375, or 3.75. Both figures are extreme but I find it very difficult to believe they made AED 1.5 billion for the half year.
As the Methaq IPO was 43x oversubscribed and collected AED 3.6 billion, you'd expect there would have been AED 10-20 million IPO income in that period (assuming excess funds were kept 2-4 weeks).
Methaq profit forecast for 2008 FY is about AED 1.9 million so perhaps that H1 figure is correct but excludes IPO income?
If IPO income of AED 15 million (unconfirmed - just a random guess) is included with 2008 FY forecast, then PE could be about 60-70 at current share price of AED 7.11. Still looks unreasonably high.
Methaq shares have plummeted 9.2% to AED 6.91 in the first hour of trading today.
Methaq results appear to be from 11 March to 30 June 2008, which is more than 3 months, but it seemed more reasonable to do calculations based on a quarter than on 6 months. This means my PE estimates in the first post are off by a factor of 2.
Mithaq (METHAQ) profit figures for second quarter 2008 are (EPS annualised in brackets):
2008 Q2 profit = AED 1.5m, EPS = 0.01 dhs (0.04 )
EPS figures calculated from Net Profit / 150,000,000 shares outstanding.
METHAQ share price at close on 06 Jul 2008 was 7.61 dhs, so 2008 estimated PE is about 7.61 / 0.04 = 190.3, based on Q2 earnings, which is close to 11 times the average market PE of about 17. As previously mentioned, that does not appear to include IPO income which, if included, would bring the PE figure down substantially, but as the annualised figure is based on just one quarter, it would be unrealistic anyway.
Methaq (METHAQ), in the last 4 months, apparently made more profit than every UAE listed company in 2008 Q1, except for Emaar (EMAAR), and Etisalat (ETISALAT), according to the EB headline this morning. Looks like their convertor has screwed up .
I can't find article online, it's on page 21 of the print edition. Anyway, now I know what the number 10 meant in the disclosure ...
Emirates Business 08 July 2008:
Methaq Takaful's net for four-months touches $408m
Abu Dhabi: Abu Dhabi-listed Methaq Takaful Insurance Company said yesterday its net profit for the four-month period since its incorporation on March 11 reached $408 million (Dh1.496m). In a statement on the Abu Dhabi bourse website, the firm said it will release a detailed statement within 10 days. Methaq was incorporated with a fully paid up share capital of Dh150m.
I think TKFL did a great job confusing the whole market !
Not easy to make Dhs1.5B in 6m even if you are selling illegal stuff
I have a theory now that ADX investors value the listed stocks according to their P/E ratio....but it works the other way around in ADX......the higher P/E ratio the bettrer.
After all, higher is better, isn't it?
I think this is why Aldar is going down now with huge volumes. Aldar P/E potential is too low. They need to work on their profitability to be in line with TKFL, Methaq, Arkan, Asmak, ABAAR,...
Wait, do you mean higher PE is not better ? I may have to rethink my investing strategy ...
Actually, sometimes high PE can be interpreted positively, but not in the case of Methaq (METHAQ). By the way, (TKFL) is the symbol for Abu Dhabi National Takaful - another insurance company with a PE to make your nose bleed. _________________ UAE IPO list | posting guidelines
(METHAQ) Methaq Takaful Insurance: Discloses its Financial Statements and Board Report for the six months ended 30th June 2008
Statements are in Arabic, released on ADX website after close of trading. I don't see anything that obviously looks like IPO income so I wonder what happened to it? I asked Methaq about it last week but didn't receive any explanation.
Methaq shares fell 1.4% to AED 6.76 today. Volumes have dropped off considerably. _________________ UAE IPO list | posting guidelines
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? I may have to rethink my investing strategy 