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QuestionsCategory: Financials QuadrantFrasers Property
Victor Lee asked 2 years ago

Hi Victor,
Very much appreciate if you could lend clarity to my queries on the valuation and financials of Frasers Property from their 2019 Annual Report

  1. Page 176 of the report shows the directors’ interest. The combined deemed interest of Charoen S. and Khunying Wanna S. exceeds the total number of ordinary shares stated in notes to the financial statement. How is this possible?
  2. The restated values for the past years are different to the values stated in the annual report (AR) for that particular year i.e. restated figues for 2018 are different to the figures shown in the 2018 AR. When using valuation spreadsheet, should I amend the past year figures to reflect the re-stated numbers instead?
  3. For “Profit Attributable to Shareholders”, should I use the line that says “before fair value change and exceptional items” or I use the line that says “560.693”?
  4. Should an investor be concerned that the profit of non-controlling interest is about as large as that of ordinary shareholders?
  5. Since Frasers Property is in the business of property development and property management, should Capital Expenditure include “Acquisition of/development expenditure on investment properties”?

Thank you for your time and assistance.
Cheers,
Victor

1 Answers
Victor Chng answered 2 years ago

Hi Victor,
 

  1. Both Chareon and Khunying Wanna own 2,541,007,768 of deemed interest. You don;t combine the both figure together. 
  2. Yes you should always use the restated figure.
  3. Profit should be 350,075 excluding all those fair value and exceptional item
  4. It is quite normal for large corporation. It is not a concern
  5.  Yes you can include that but you need to know those are development capex instead of maintenance capex.  
Victor Lee replied 2 years ago

Thanks Victor!