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Sunday, May 18, 2014

Pan United's acquisition dragging down on profits

Pan United 1st quarter 2014 results saw a reduced earnings of 14% as compared to 2013. The acquisition of 90% interest in Changshu Changjiang International Port Co., Ltd (CCIP) saw the increase amount of debt the company incurred. CCIP recorded a loss of about $5.1 million being a new port.

However, the increased in finance costs and the dragging down in net profits by CCIP makes this counter less attractive for me. Although it had risen in share price from my purchase price of $0.6 to about $1.

The CCIP business does not sound too attractive of an acquisition for the company.

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