K1 Ventures

K1 Ventures: 1QFY15 net profit of $3m, declared 2.5¢ dividend. The latest results reflect the deconsolidation of Helm, its railcar leasing business, which was divested in Apr this year. Including the latest div, mgt would have dished out a total of 10.5¢ in dividend/share since mgt's failed MBO some 2 yrs ago. K1's remaining invmts include: i) 10.2% stake in Knowledge Universe Holdings, ii) US$100m invmt in preferred shares of Guggenheim Capital with a 7% coupon rate, iii) 1.6% stake in China Grand Auto, the largest auto dealership in China and majority owned by PE firm TPG. Mgt does not plan to make any further invmts and will manage the existing portfolio for eventual exits. Near term catalyst could be a listing and monetisation of China Grand Auto as well as potential cash distribution from KUH. DMG reiterates Buy with TP $0.235