Sing Holdings

[ichew]

hi chinaman
ur fren knows good stuffs
haha but i am biased and vested
anyway i hope he is right abt the coming 3Q results which shld be out abt 11-nov
CEO said they will progressively recognise the profits over nxt 34mths til TOP 2013
in the coming AGM, i think i better ask him to gimme a breakdown how many % per mth

[behappyalways]

Recognition of Sales

http://sharonanngoh.com/resources/build ... ction-buc/

[ichew]

hi behappyalways
thanks for this link
but think this is more for buyers of the condo

still i guess we can use this as a guide
last qtr, they recog 3%
so this qtr, they shld recog at least another 20%?

any civil engineers working near the laurels?
can let us know if the foundation work complete?
tat will add another 10%?

[behappyalways]

They use % of completion method to calculate revenue.

During the last week of Sept 2010, my friend and I drove by their site to take a look and the construction are still at foundation phase. They should do well in 3Q but how well......not sure....one thing for sure is that they would incur much lower marketing expenses for The Laurels compared to $6m in 1H2010 as most of the units from The Laurels were sold in 1H2010. Another project, Bellrive is said to TOP in 4Q but if they finished faster, would add to profit. If I am not wrong, property companies normally keep some provision and they would revise back the provision when TOP

[ngcheeki]

They use % of completion method to calculate revenue.

During the last week of Sept 2010, my friend and I drove by their site to take a look and the construction are still at foundation phase.

Thanks for your updates on the progress of "The Laurels".

Based on the 20% of 84.28% sale of the project @ $2850 psf, the 70% share will have sale proceed of $26 millions excluding
any recognition from other projects.

Vested.

[behappyalways]

As Sing Holdings owned 70% of The Laurels project, they would consolidate the revenue meaning it would include 100% of the sales.

In their 2Q10 result, they stated that the total sales proceeds of The Laurels is $574.4m as of 12 Aug 2010 and they did not have any new sales so 10% of sales from The Laurel is $57.4m. I doubt they would account for 20% completion of construction for The Laurels considering they are still in foundation work as of end Sept. The project's gross profit margin is about 20-30%(maybe more as the recent sales are above $3000psf) and taking 70% from the joint venture.....a lot of guesswork so let's just wait for the numbers and see. Personally I am hoping that they could get a few more land parcels or have some joint ventures with the big guys to branch out (By the way, they developed an office building in Shanghai with Keppel a few years back)

[ngcheeki]

In their 2Q10 result, they stated that the total sales proceeds of The Laurels is $574.4m as of 12 Aug 2010 and they did not have any new sales so 10% of sales from The Laurel is $57.4m. I doubt they would account for 20% completion of construction for The Laurels considering they are still in foundation work as of end Sept. The project's gross profit margin is about 20-30%(maybe more as the recent sales are above $3000psf) and taking 70% from the joint venture.....a lot of guesswork so let's just wait for the numbers and see. Personally I am hoping that they could get a few more land parcels or have some joint ventures with the big guys to branch out (By the way, they developed an office building in Shanghai with Keppel a few years back)

Thank you for pointing out the error . The 26m should be 20% of the profit instead of 20% sale proceed using the total
sale proceeds of $607m taking into account of latest sale figure. Hence, 20% of sale proceed should be 120m instead of 26m. As correctly pointed out, it's just my personal speculation .

[behappyalways]

3Q2010 result

http://info.sgx.com/webcoranncatth.nsf/ ... penelement

[ngcheeki]

Based on the 3Q result, "only about 5% of the revenue of The Laurels was recognised up to 3Q2010
based on construction progress, sales and marketing expenses and showflat costs incurred amounting
to S$7.0 million were fully expensed off in the nine months ended 30 September 2010."

So there are still 95% outstanding revenue to be recognized. Still waiting...will pick up more if share price drop to
34 cents and below

Next, based on the latest sale figure for 85% sold for "The Laurels", we can expect another unit of "The Laurels"
being sold, watch out for the URA sale figure in the middle of this month.

[behappyalways]

For your infor, i have been monitoring the trade in Sing holdings share. Some big sellers have been selling around 34 -36 cents and my guess is Fragrance Group. But another group is buying which is interesting. They have bought quite a lot and giving it support. I think construction will start full speed in 4Q and should start to see nice results in 4Q10 and my two cents worth is that the bottom is around current price unless negative economic events......

By the way market seems to be bullish and let's see how long it can last......Dec 2010 or 2011. I read many reports and some of the high techs are going to do well as stated in their commentary because of new products.....so the bull should last for a while

But I still hope that they would branch overseas because property is cyclical and the cycle even though is shortened still take years. So even though boom now for Singapore, may be wise to branch out and when bust come, the overseas earnings would start to contribute. A joint venture with a big boy would be safer and also shortened the learning curve