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Hi Rusmin,
Wishing all GOOD HEALTH AND A SUCCESSFUL INVESTMENT NEWYEAR
I see your point to add back the non-recurring item i.e. ppe write off to net profit but I believe we also have minus the sale of assets to the new joint venture in Thailand which is also non-recurring. There is no notes on ‘Other Income’ so I not able to come up with the net figure.
On the point whether BreadTalk is able service their loan interest, I think that is not an issue if we take the interest expense ($3728) on average borrowings (approx. $183600) which works out 2%p.a. So if we assume a double digit interest rate of 10%, the interest expense on outstanding borrowings is about $19850 if we take into consideration their current operating cashflow. However with the increased investment in commercial properties is draining their healthy liquidity position and may soon need to reduce the property portfolio or call for shareholders’ fund in order to improve on their net margin income.