Matthews Pacific Tiger Fund Sold Stake in Indian Energy Company in 2nd Quarter

- By David Goodloe

The Matthews Pacific Tiger Fund (Trades, Portfolio)'s top four transactions in the second quarter involved sales or reductions of stakes in the fund's portfolio.


The fund's largest transaction of the quarter was its sale of a 5,310,034-share stake in Thermax Ltd. (BOM:500411), an energy company based in India, for an average price of 765.88 Indian rupees ($11.46 in U.S. currency) per share. The divestiture had a -0.93% impact on the fund's portfolio.

Thermax has a P/E of 50.1, a P/B of 4.9 and a P/S of 2. GuruFocus gives Thermax a Financial Strength rating of 7/10 and a Profitability and Growth rating of 6/10 with ROE of 10.03% that is higher than 65% of the companies in the Global Diversified Industrials industry and ROA of 3.56% that is higher than 53% of the companies in that industry.

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Thermax sold for 882.3 rupees per share Friday. The DCF Calculator gives Thermax a fair value of 188.35 rupees.

The fund pared its position in NAVER Corp. (035420.KS), a South Korean Internet content service provider, by nearly 25% with the sale of 100,499 shares for an average price of 687,823 South Korean won ($615.88 in American dollars) per share. The transaction had a -0.85% impact on the fund's portfolio.

The remaining holding of 306,817 shares is 1.05% of NAVER's outstanding shares and 2.88% of the fund's total assets.

NAVER has a P/E of 31.8, a P/B of 8.4 and a P/S of 9.3. GuruFocus gives NAVER a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10 with ROE of 28.56% that is higher than 85% of the companies in the Global Internet Content & Information industry and ROA of 20.33% that is higher than 93% of the companies in that industry.

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NAVER sold for 710,000 won per share Friday. The DCF Calculator gives NAVER a fair value of 238,828.35 won.

The fund trimmed its stake in China Vanke Co. Ltd. (HKSE:02202), a Chinese residential real estate developer, by more than 67% with the sale of 17,192,200 shares for an average price of 18.34 Hong Kong dollars ($2.36 in U.S. dollars) per share. The deal had a -0.64% impact on the fund's portfolio.

The remaining stake of 8,305,504 shares is 0.08% of China Vanke's outstanding shares and 0.25% of the fund's total assets.

China Vanke has a P/E of 10.3, a forward P/E of 9.4, a P/B of 1.9 and a P/S of 0.9. GuruFocus gives China Vanke a Financial Strength rating of 4/10 and a Profitability and Growth rating of 7/10 with ROE of 19.64% that is higher than 86% of the companies in the Global Real Estate - General industry and ROA of 3.15% that is higher than 55% of the companies in that industry.