What in the world is going on?
The company’s recent HY07 results reveal a 91% jump in net profit. There has been a significant year-on-year jump in both investment income and fee income. However, the Management Discussion & Analysis reveals that a large portion of the increase in income was due to the one-time launch of the Akebono Fund and the one-time disposal of three vessels. In other words, the market seems to be treating the one-time profits as recurring.
The images below, extracted from the latest HY report, illustrate. (Click for full image)
Fee IncomeInvestment Income
Up, up and away......!!!