{"id":512,"date":"2024-05-02T01:01:00","date_gmt":"2024-05-02T01:01:00","guid":{"rendered":"https:\/\/bluegemresearch.co.za\/?p=512"},"modified":"2024-05-01T07:56:10","modified_gmt":"2024-05-01T07:56:10","slug":"astoria-investments-results-note-leatt-investment-concluded","status":"publish","type":"post","link":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/?p=512","title":{"rendered":"Astoria Investments \u2013 Results Note \u2013 Leatt Investment Concluded"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>Share Code: ARA \u2013 Market Cap: R508m \u2013 Discount to NAV: 40%<\/em><\/p>\n\n\n\n<div class=\"wp-block-file\"><a id=\"wp-block-file--media-c137d8ef-e112-4efa-88ba-ea434a57109e\" href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/05\/Astoria-Investments_Q1_24_Results-Note.pdf\"><strong>Astoria Investments &#8211; Q1:24 &#8211; Results Note<\/strong><\/a><a href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/05\/Astoria-Investments_Q1_24_Results-Note.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-c137d8ef-e112-4efa-88ba-ea434a57109e\">Download<\/a><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Q1:24 Results: Currency headwinds<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Astoria Investments reported its Q1:24 results that show Net Asset Value (NAV) per share decreased -7.7% and -4.8% in USD and ZAR respectively as currency headwinds impacted translations and Goldrush (code: RACP) and Leatt\u2019s (code: LEAT) share price pressure endured for this period.<\/li>\n\n\n\n<li>As a reminder, Astoria\u2019s reporting policy for Q1 and Q3 periods is not to perform detailed valuations of <em>un<\/em>listed investments (except when developments require an immediate and material change in value). Price changes for listed investments and currencies are reflected on an ongoing basis.<\/li>\n\n\n\n<li>In our updated Sum-of-the-Parts (SOTP) valuation below and on the next page, we have done the same and updated our view for the latest share prices and exchange rates.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Commentary: Further Leatt Investments Concluded<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Astoria\u2019s further acquisition of Leatt Corp\u2019s shares was concluded during this period. We discuss this investment and the underlying business in some detail in our previous results note (<strong><a href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/04\/Astoria-Investments_FY_23-Results-Note.pdf\">LINK<\/a><\/strong>) and consider it an attractively priced asset with the deal using Astoria\u2019s equity in a non-dilutive manner.<\/li>\n\n\n\n<li>Late in April, Astoria\u2019s management hosted an investor event that was recorded and can be viewed here: <strong><a href=\"https:\/\/www.youtube.com\/watch?v=VRLJ-5NrDJU\">LINK<\/a><\/strong>.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Valuation, 12m TP &amp; Implied Return: Above Average Discount<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Updating Astoria\u2019s NAV to current prices, the share is trading at c.40% discount to the current NAV (Previously: 42%).<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/05\/2024-05-02.png\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"832\" height=\"392\" src=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/05\/2024-05-02.png\" alt=\"\" class=\"wp-image-514\" srcset=\"https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/05\/2024-05-02.png 832w, https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/05\/2024-05-02-300x141.png 300w, https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/05\/2024-05-02-768x362.png 768w, https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/05\/2024-05-02-624x294.png 624w\" sizes=\"auto, (max-width: 832px) 100vw, 832px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If we take out our calculated \u201cHoldCo discount\u201d of c.14.2% (Previously: 13.9%) from this NAV, we arrive at a fair value for Astoria\u2019s shares of c,1162cps (Previously: 1192cps) or c.42% <em>higher<\/em> than the current share price.<\/li>\n\n\n\n<li>Rolling this fair value forward at our Cost of Equity, we arrive at a 12m TP of c.1386cps (Previously: 1420cps) that implies a potential return of c.69% from the current share price.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-file\"><a id=\"wp-block-file--media-c137d8ef-e112-4efa-88ba-ea434a57109e\" href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/05\/Astoria-Investments_Q1_24_Results-Note.pdf\"><strong>Astoria Investments &#8211; Q1:24 &#8211; Results Note<\/strong><\/a><a href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/05\/Astoria-Investments_Q1_24_Results-Note.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-c137d8ef-e112-4efa-88ba-ea434a57109e\">Download<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Share Code: ARA \u2013 Market Cap: R508m \u2013 Discount to NAV: 40% Q1:24 Results: Currency headwinds Commentary: Further Leatt Investments Concluded Valuation, 12m TP &amp; Implied Return: Above Average Discount<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[144],"tags":[149,13,15,154,60,20],"class_list":["post-512","post","type-post","status-publish","format-standard","hentry","category-astoria_investments","tag-astoria-investments","tag-equity-research","tag-jse","tag-leatt","tag-research","tag-small-cap"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/512","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=512"}],"version-history":[{"count":1,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/512\/revisions"}],"predecessor-version":[{"id":515,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/512\/revisions\/515"}],"wp:attachment":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=512"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=512"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=512"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}