Far East Orchard ( former Orchard Parade )

[winston]

Orchard Parade Holdings 1Q08 Results - BUY

Previous Day Closing price: $1.25
Recommendation: BUY (maintained)
Target price: $2.58 (reduced from $3.10)

Significant improvement in core earnings


Welcome to Singapore

Orchard Parade Holdings (OPH) delivered a 1Q08 net profit of $16.6m, a 225% improvement Y/Y, despite seeing a 44.5% decrease in sales to $17.2m. The lower revenue was mainly because there was no property sale in 1Q08. Adjusting for fair value gains on investment properties and unrealized losses on financial assets, PBT of $11.2m far exceeded our expectations due to its better than expected hospitality operations.

Slow flow for Floridian

OPH is already feeling the benefits of the increased tourist arrivals and the resultant higher Average Room Rates (ARR). Revenue from its hospitality business and rental income from its investment properties have increased by $4.1m, mainly attributable to higher ARR at Orchard Parade Hotel.

While the availability of hotel rooms remains tight despite increased tourist arrivals, we expect OPH to continue to enjoy improved hospitality revenue.


YHS boosted by large tax reversal

Sales of Floridian remains at a standstill, mirroring the general outlook in the Singapore private residential property market.

Our latest check shows only 5 caveats lodged, averaging at $1,690 psf. We maintain our average selling price assumption of $1,600 psf for the entire project, but have also adjusted our profit recognition schedule.


Undervalued assets

OPH's share of associated companies profits jumped 136.7% to $4.7m, principally due to a 146% increase in Yeo Hiap Seng's PATMI of $9.5m. However, the earnings were boosted by a $11.8m tax write-back from YHS property division and its core earnings remain weak.

YHS expects its F&B business to continue to face pressure on its selling price due to intense competition and rising raw material and energy costs. Construction of the Jardin is expected to commence soon and YHS should be able to recognise some profits from it in FY08, even as sales have been slow up till now.

OPH's hospitality business continues to outperform, underpinning earnings as the stalemate in the residential market continues. We adjust our profit recognition schedules for Jardin and Floridian, reducing our FY08 and FY09 forecasts by 43% and 27.7%.

Maintain our BUY recommendation with a target price of $2.58, based on a 20% discount to RNAV.


Source: Kim Eng

[millionairemind]

November 10, 2008, 6.52 pm (Singapore time)

Orchard Parade Q3 net profit surges 94%
By ANGELA TAN

Orchard Parade Holdings Limited on Monday said net profit for the third quarter ended September 30, 2008 surged 94 per cent to S$14.73 million on improved operations.

Revenue rose 17.2 per cent to S$19.22 million due to better average room rates.

The company intends to continue to drive sales of its units in Floridian, a freehold residential condo in Bukit Timah despite the challengin market conditions.

[winston]

Not vested

Orchard Parade Holdings shares continue surge by Travis Teo

SINGAPORE - Shares of Mainboard-listed Orchard Parade Holdings (OPH) are red hot - surging 30 per cent in the last two weeks, including a gain of almost 4.3 per cent on Friday to close at $1.59.

OPH, 58.25 per cent owned by privately-held Far East Organization, develops property and also operates Orchard Parade and Albert Court hotels. It also owns more than half of the beverage company, Yeo Hiap Seng.

"Usually in such cases, if there is one major unit holder, then a takeover or a privatisation might be likely," said Kim Eng analyst Anni Kum.

OPH, however, said in a filing with the Singapore Exchange that it was not aware of any new information that could explain the huge increase in its share price.

Other analysts said that Far East may be looking to inject its existing hotel assets into OPH. But before it can do that, it may have to buy out all the public shareholders. Far East said it had no information to offer beyond what OPH had already told the exchange.

Property analysts also reason that OPH may be looking to put up Orchard Parade Hotel for sale, after the neighbouring Tanglin Shopping Centre went en bloc in June.

Mr Colin Tan, research and consultancy director of Chesterton Suntec International ,said: "The stretch from Somerset to ION Orchard has seen a lot of recent developments. Now developers might be looking at the stretch from ION to the Botanic Gardens."

Meanwhile, Kim Eng analyst Wilson Liew suggested "the sharp increase in price could just be due to increased market interest after the 26 per cent acquisition of F&N by Kirin just about 2 months ago."

"The two companies share quite similar company profiles - holding both properties as well as food and beverages assets," he said.

Daily traded volumes for OPH have averaged more than two million shares since Oct 15. In the three months prior to Oct 15, just about 230,000 of OPH shares changed hands in a day.

http://www.todayonline.com/Business/EDC ... inue-surge

[winston]

Not vested

Orchard Parade, a Singapore property developer and hotel operator, said on Monday its third-quarter net profit doubled from a year ago due to the recognition of revenue from a condominium project.


Source: Reuters

[winston]

Not vested

Singapore Hot Stocks-Orchard Parade up on strong Q3 results

SINGAPORE, Nov 9 (Reuters) - Shares of Orchard Parade , a Singapore property developer and hotel operator, rose as much as 7.4 percent in early trade on Tuesday after it reported strong third-quarter results.

At 0154 GMT, Orchard Parade shares were up 6 percent at S$1.73 on a volume of 1.9 million shares.

"Their profit had shot up. Apart from their condominium project, their hotels are also doing well with tourism going up," said a local trader.

"They had also bought a couple of sites with their parent Far East to develop, so their prospects are good," he added.

Orchard Parade said on Monday its third-quarter net profit doubled to S$22.6 million ($17.6 million) from a year ago due to the recognition of revenue from its Floridian condominium project.


Source: Reuters

[winston]

Not vested

Orchard Parade Holdings (OPH SP, $1.62, NOT RATED)

Far East Organisation (FEO) is planning to raise at least $500m through the listing of its hotel and serviced residence assets in a REIT as early as next year.

One of the assets that may be spun off into the REIT has been identified as OPH’s Orchard Parade Hotel.

We think there are strong reasons for FEO to take OPH private before the formation of the new REIT, as OPH’s hospitality assets, which fit the REIT’s profile well, are valued at $691m, or 1.2x the market cap of OPH.

Source: Kim Eng

[kazataza]

got a shock when i saw its price suddenly shoot up last Fri..today another round...hopefully able to substain....

[LenaHuat]

I can't believe that people are chasing this ticker. I would not buy anything that LiKaShing doesn't want. Likewise, why buy something that the Far East group is hiving off

[winston]

not vested

Orchard Parade up on asset spin-off plan Shares of hotel and property group Orchard Parade Holdings Ltd jumped as much as 17 percent to their highest level in more than four years, after the company said it will divest three of its hospitality assets into a trust.

By 0119 GMT, Orchard Parade shares were 15.4 percent up at S$1.875, and have surged about 46.5 percent since the start of the year.

DMG & Partners initiated coverage of Orchard Parade, the hospitality arm of property developer Far East Organisation, with a 'buy' rating and target price of S$2.23.

"Spinning off its hospitality assets into a real estate investment trust will enable the group to monetise its hotels at a good valuation and create a platform for sustainable growth," DMG said in a report.

Far East also has another five hotels and several serviced residences which it could inject into the hospitality trust, DMG said, adding that Orchard Parade could also sell its 49.5 percent stake in Yeo Hiap Seng Ltd , a non-core investment, generating more capital to be redeployed into the property business.

Source: Reuters

[winston]

Orchard Parade to Expand Hotel Business in Southeast Asia By Ee Chien Chua

Orchard Parade Holdings Ltd. (OPH), a unit of Singapore’s largest closely held developer, plans to expand its hotel management business in Southeast Asia to tap the region’s tourism growth, Chief Executive Officer Lucas Chow said.

http://www.bloomberg.com/news/2012-06-2 ... -asia.html