Forum Archive Index - March 2003

[mike <hardwerke@yahoo.com>]

Please excuse my possibly very ignorant question -
Is there anything to stop the Government or local
Council stepping in and regulating AIA
charges/profits?
How likely or unlikely could this be?
Chas




From: "G Stolwyk" <stolwyk@wave.co.nz> 
Date: Wed, 26 Mar 2003 13:25:02 +1200 

--------------------------------------------------------------------------------

I wrote this as an answer to a trader who thought that
AIA was worth $4.90 and no more:
----------------------
A. Even if there were no planes flying, AIA still
collects 52.8% of the normal expected revenue. Yes it
has a money printing machine.

B. When the planes do fly, they also collect 16.2% of
revenue in Departure tax or Airport Development Charge
(ADC).

 Now, the latter can't be booked as profit as it is
used to build new runways and extend the Airport. (The
second new runway will cost about $140 mill.- $170
mill., add taxiways and installations).

However, it will build assets for AIA. About $35 mil.
Departure tax to spend this year and it is growing!
(The NZ Government gets a share as well). 

So, when you combine these two sources of income, then
70% of revenue is collected with little cost
involved.(Retail and Investment Property rentals,
Carparks, Utilities and Development charge).

Show me one company in the whole world which can do
that? 

AIA is of course the most profitable Airport in this
world!

Gerry
 Current price $5.20 (+5). It is also 9.5 cents ex
div.
 
The guided forecasts were up to $79 mill. NPAT and
could have approached $80 mill. in normal
circumstances. 
 
Mine was $78 mill and I'll drop that now to $77 mill.
There are 304 mill shares. P/E=20.5. 
Fully imputed div. yield: 5.4%-5.7% 


__________________________________________________
Do you Yahoo!?
Yahoo! Platinum - Watch CBS' NCAA March Madness, live on your desktop!
http://platinum.yahoo.com

----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/