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RHM Round Hill Music Royalty Fund Limited

1.145
0.00 (0.00%)
24 Apr 2024 - Closed
Delayed by 15 minutes
Round Hill Music Royalty Investors - RHM

Round Hill Music Royalty Investors - RHM

Share Name Share Symbol Market Stock Type
Round Hill Music Royalty Fund Limited RHM London Ordinary Share
  Price Change Price Change % Share Price Last Trade
0.00 0.00% 1.145 01:00:00
Open Price Low Price High Price Close Price Previous Close
1.145 1.145
more quote information »

Top Investor Posts

Top Posts
Posted at 08/2/2021 21:51 by strollingmolby
RHM beats SONG on royalties disclosure

Another recent new issue, Round Hill Music Royalty Fund (RHM) already seems to be just about fully invested. At launch, it had a near-term pipeline valued at $363m, but raised $282m (£206m) of its $375m target at IPO on 11 November 2020. It has the ability to gear, or borrow, up to 25% of net asset value (NAV), but even with this it still would have been just shy of the amount needed to buy the entire pipeline. Fortunately, it was able to top up its cash pile with a placing of $46.6m worth of shares on 16 December.

Now RHM has put that money to work. It has bought the majority of the assets of a pre-existing fund, Round Hill One for about $282m and is in the process of acquiring a 29.1% stake in RH Carlin Holdings LLC, a fund that owns over 100,000 copyrights. Once that deal completes, RHM will have invested all of its IPO proceeds plus some gearing.

That puts it in a position to come back to investors for more money. RHM says it has a further pipeline of about $500m worth of catalogues of song rights. It could reasonably look to double in size.

Getting the money deployed means the income starts to flow and for RHM that will start to manifest itself as dividends next month. The target is an annualised dividend of 4.5% of the launch price for this year.

RHM’s announcement gave more information about the $282m Round Hill One portfolio. 18,000 songs across over 38 catalogues, a bias to older compositions (85% written between 1950 and 2010), and encompassing a diverse range of music from Aerosmith to Celine Dion, the Beatles to the Backstreet Boys, and Joni Mitchell to Ozzy Osbourne.

The really striking thing about RHM’s acquisition though, was just how much information they have disclosed to investors. Visiting the fund’s website, I was amazed to see actual annual revenue figures for each catalogue going back as far as 2011, a presentation detailing value creation initiatives for each catalogue and some useful information on how the portfolio was valued, including the news that it was written up in value from $266.3m to $281.9m over the first six months of 2020.

We have perhaps become conditioned to minimal disclosure by Hipgnosis Songs Fund (SONG), but RHM seems to have thrown down a gauntlet in this regard. Perhaps that’s why investors only bought £75m of new shares in its latest placing, although to be fair Hipgnosis was the largest investment company fund raiser last year, drawing in over £400m in two issues.
Posted at 08/2/2021 19:09 by strollingmolby
The Company is a newly incorporated non-cellular Guernsey company. The Company's Investment Objective is to provide investors with an attractive level of regular and growing income and capital returns from investment primarily in high quality, music intellectual property. In order to achieve its Investment Objective the Company will invest in a songwriter's copyright interest in a musical composition or song (being their writer's share, their publisher's share and their performance rights) together with the rights in the recording of the musical composition or song (known as the master recording rights) together with all such rights and assets considered by its investment manager, Round Hill Music LP ("Round Hill") to be ancillary thereto.

Round Hill: We pioneered royalties, Hipgnosis just listed first
14 Oct, 2020

The company launching the second London-listed music royalties fund has said its pioneering record and stable of golden oldies make it a distinct proposition from Hipgnosis Songs (SONG), which has proved a hit with investors since listing two years ago.

Josh Gruss, founder of the decade-old firm, credited Hipgnosis with cracking the UK market and building investor awareness of the asset class, but emphasised that not all music royalties funds were one and the same.

‘Round Hill does think that there’s room for a second player but also we think that we are, out of all the players in the space, the one that deserves to be the second player and is the best set up to be that rival, if you will,’ he said.
Posted at 07/11/2013 16:51 by cascudi
From: hxxp://www.redhot.asia/pdf/RHM_Notice_of_EGM_2013.pdf

On 16 November 2010, RHM announced that the Company had entered into a conditional SSA with PUCF over
the disposal of their entire equity interest in RMA, consisting of RHM's operating subsidiaries, for a total
consideration of RM95,000,000 to be satisfied via the issuance to RHM of 950,000,000 new shares in PUCF....

The Board of RHM believe the Disposal and the issue of the Consideration Shares will benefit the Company in its
business expansion and growth in the long term thereby creating increased shareholder value. The Board of
RHM also believe that the Disposal will be advantageous to the Company in the following principle ways:-
• Enhanced financial performance by way of an enlarged asset base and increased profit contributions
from the consolidation of PUCF's assets and earnings;
• Being an Asian-based business the Board of RHM believe they will have a better opportunity to access
the local Malaysian capital markets where the investor community as a whole has a better
understanding and awareness of the existing RHM business. This should provide increased, prospective
opportunities for new investment into RHM's business from Asian-based investors which in turn the
Board of RHM believe should provide greater opportunities for the realisation of shareholder value;
• Enable strategic leverage on the PUCF Group's significant shareholder base and business network in
China which includes a Peking University-backed conglomerate operating in Greater China with
business investments worldwide and a reported revenue of US$9.76 billion and US$5.15 billion in net
assets in 2012;
Posted at 25/7/2012 20:44 by mister md
dropside-Good to read your opinions. Saw a 2x 50k buy go through yesterday, perhaps another director buy still to be announced?
Agree with the odd newly proposed company name, but recall seeing the linkedin page of the chairman which says something along the lines of 'UK investors mainly like resources plays' ?!! With the company seemingly going in all directions I think many have given up on them and are worried about another AIM scam like Langbar or dodgy company like RCG (also in Biometrics like Founder -oops!). But having read annual reports of Founder Malaysia it seems a solid company and growing too. Looking back at RHM announcements it seems this transaction was already mentioned back in 2010 so will be good to finally see it going through. Lots of recent buy recommendations (Investors Chronicle etc though never rely too much on them). High risk at a time investors are avoiding risk (and anything China-related for that matter) though this is Malaysian ;) Plus totally illiquid share, can't buy/sell much within the spread. Wacky punt, will see what happens...
Posted at 12/3/2012 14:45 by topinfo
Lawson

Red Hot would then be a holding company with a 68% stake in Founder Berhad worth £29m. If we divide that by Red Hot's 36.6 million shares we get within a penny of Cheong's target price of 80p.

Looked at another way, RHM will hold 710 million shares in Founder Berhad post the transaction. Today, Founder's shares trade at RM0.175. Multiply that by 710 million and we get a figure of £26.2m, equivalent to 72p per RHM share, which is within 10% of Cheong's target and some 32p above the London price of RHM.

Either way, it looks as if local Malaysian investors can recognise a good business, and are ahead of the game here. What is more, Cheong Chia Chieh promised that there would be some more good news later this year. I'll keep you up to date.
Posted at 05/3/2012 08:43 by topinfo
RHM (RED HOT MEDIA)

1st Match 2012 by Tom Bulford



I'm not proud. I'll go anywhere to get a story. So last week found me in the Rivoli bar of the Ritz Hotel, Mayfair. I sat there, marvelling at the £6 cost of a thimbleful of cranberry juice and resenting the waiter's sniffy insistence that I should wear a proper jacket.

My mood, though, was lifted by the gentleman across the table.

His name is Cheong Chia Chieh and he was beaming from ear to ear.

In a series of visits to the UK he has been conducting a charm offensive designed to boost the share price of a business of which he owns 22%. And he told me that his efforts are working. The share price of his company has recovered by 60% from its October trough, and trading volume in this once moribund counter is lively.

Now the shares trade at 40p, but if Cheong has his way they will soon be at 80p. I have covered Red Hot Media in Penny Sleuth before, but let me tell you Cheong's story.

How to blow a bundle in Malaysia – and get nothing back

Cheong, a Malaysian, used to work for Nanyang Press Holdings, publisher of the Nanyang Siang Pau. Launched in 1923, it is the oldest Chinese language newspaper outside the mainland. One thing he learned in his time there was that advertisers spent plenty of money without having much idea of what they are getting for it. As the nineteenth century American merchant John Wanamaker put it, "half the money I spend on advertising is wasted; the trouble is I don't know which half".

This is particularly true when advertisers venture into foreign climes. Cheong observed foreign companies attempting to target the Malaysian consumer simply by appointing an international ad agency and throwing money at the problem. He reckoned that he could offer something better. So when Nanyang's owner MCIL went public, Cheong took the chance to buy out part of the business along with a partner with the initials 'RH' (from which was derived the wonderful and unforgettable name 'Red Hot' Media!).

Revenues have doubled, so why haven't share prices followed?

Today, Red Hot offers what Choeng calls "results based marketing". To be honest, I am not sure that this is so very different from conventional marketing, but Red Hot does claim a better knowledge of the route to the Malaysian consumer, and it has built a substantial local market share.

In the last four years, Red Hot has grown its revenues from RM19.3m (Malaysian Ringgit) to RM44.3m (that's about £9.2m) – and its pre-tax profit from RM2.2m to RM9.2m (c. £1.9m). If the forecasts of Allenby Capital prove to be correct there will be no let-up in this rate of growth.

But Red Hot's share price has so far failed to reflect this rude health. This is due to an innate UK investor suspicion of anything east of the Thames estuary, and to RHM's somewhat eccentric approach to investor relations. But also muddying the waters is a proposed deal that will see Red Hot inject its entire operating business into Founder Berhad in exchange for a 68% stake in the latter. Could this all lead to the change needed?

Founder Berhad is the Malaysian-listed arm of a major Chinese conglomerate, the Founder Group, which is involved in technology and financial services. Founder Berhad is a developer of fingerprinting security systems and "a renowned provider of IT solutions". It made a profit after tax of RM763,000 in 2010. Adding this to RHM's 2011 post-tax profit of RM10.5m (as forecast by Allenby), we get a combined number of c.RM 11.3m, rising to c. RM13.6m for 2012. Placing this on the price/earnings (P/E) ratio of fifteen that Choeng thinks is appropriate would value the business at RM204m, or £43m.

Red Hot would then be a holding company with a 68% stake in Founder Berhad worth £29m. If we divide that by Red Hot's 36.6 million shares we get within a penny of Cheong's target price of 80p.

Looked at another way, RHM will hold 710 million shares in Founder Berhad post the transaction. Today, Founder's shares trade at RM0.175. Multiply that by 710 million and we get a figure of £26.2m, equivalent to 72p per RHM share, which is within 10% of Cheong's target and some 32p above the London price of RHM.

Either way, it looks as if local Malaysian investors can recognise a good business, and are ahead of the game here. What is more, Cheong Chia Chieh promised that there would be some more good news later this year. I'll keep you up to date.

• This article is taken from Tom Bulford's free twice-weekly small-cap investment email The Penny Sleuth. Sign up to The Penny Sleuth here.

Information in Penny Sleuth is for general information only and is not intended to be relied upon by individual readers in making (or not making) specific investment decisions. Penny Sleuth is an unregulated product published by Fleet Street Publications Ltd.
Posted at 05/7/2011 13:33 by mcamikeb
Sorry beagle - been busy. My opinion hasn't changed. A well positioned company with a fairly attractive valuation. Some more news from the company would help bring in new investors I'd expect - so let's hope the CEO has taken on board all this recent trading activity and sees the benefit of keeping the market frequently informed.
Posted at 16/6/2011 11:50 by mcamikeb
From David Blackwell at the Financial Times


RedHot Media International, a Malaysian media broker, joined Aim via an introduction at 82p a share in September 2008. Cheong Chia Chieh, its founder and managing director, was in the City this week to present a strong set of results, with pre-tax profits doubling to £1.8m on the back of a 69 per cent increase in revenues to £8.9m. He was hoping to find investors eager to take advantage of the company's growing business in China.

The company is also in the process of making an acquisition that will give it access to the Malaysian stock exchange if it cannot raise funds on Aim. That may prove to be the case, as RedHot shares are so illiquid that the buying and selling of a few thousand on Tuesday knocked the price down from 65p to 39p.
Posted at 14/6/2011 16:39 by mcamikeb
This stock needs liquidity, so perhaps the management don't care if the price is at 60p or 40p - it is surely one of the best performing set of results in the media sector on AIM this month. Hopefully the broker is doing some investor introductions, as it is a cheap investment at this price.
Posted at 13/6/2011 10:02 by mcamikeb
Full Year Results look excellent -

Showing Revenue up 69% and PBT up 103%.

I believe the CEO is in town meeting investors this week.

With the share price lower in recent weeks, a sure fire BUY.

Research from Daniel Stewart below with a 103p price target:


FY`10 PBT +95%YoY

EBIT doubled on regional growth in Malaysia, China and Hong Kong
Investment Case
• FY`10 revenue grew 69%YoY to RM44.3m (£8.9m); EBIT doubled to RM9.6m (21.7% margin); PBT doubled to RM9.2m (£1.83m), compared to DSCE of RM10.6m.
• RHM reported 75%YoY growth in its core Advertising & Media operation, in Malaysia (+96%), China and Hong Kong (+70%).
• RHM focused on cashflow and organic growth against a background of turbulence; growth in Asia and economic upheaval elsewhere.
• Our DCF-based target value remains 103p/share. FY`11(E) EPS is adjusted for tax.

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