SC Global

SC Global

Postby Blackjack » Sat Aug 30, 2008 1:36 pm

SC Global's languishing as well. Heard from a few sources that there's apparently market rumours of the likelihood of them folding?

As I said these are rumours. So for those easily affected, please do take it with a pinch of salt. Not meant to induce fear. I just like to associate reasons/excuses/stories/myths for price reactions however vague they may be so I can think more clearly. Personal habit.

Sometimes its 无风不起浪, but 9 times out of 10 they are usually just pure rubbish.
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SC Global

Postby qxing78 » Sun Aug 31, 2008 12:07 am

SC global is one of the sponsors for the coming F1 race. Wonder if the event can help them to sell how many more units.
I am sure Oei HL or Wheelock will be keen to support SC global IF it runs into some trouble. Understand that their land bank is accumulated at low costs.
So hopefully, not much of a problem.
Not vested.
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Re: SC Global

Postby winston » Wed Nov 12, 2008 6:29 pm

SC Global's Q3 net profit up 121%
By ANGELA TAN

SC Global Developments Ltd on Wednesday reported net profit for the third quarter ended September 30, 2008 more than doubled from a year ago to S$9.60 million.

Revenue, however, fell 15 per cent to S$25.51 million.

Revenue was contributed mainly from revenue recognition of units sold in its development projects, namely The Marq on Paterson Hill, Hilltops and Kairong International Gardens in Shenyang, China. It recognises revenue based on progress of construction.

Contribution from an associate company in Australia, AVJennings Limited, was S$1.5 million as compared to S$2.5 million in the same corresponding period last year.

Baring unforeseen circumstances, it expects to remain profitable for the year ending 31 December 2008.

Source: Business Times Singapore
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Re: SC Global

Postby Blackjack » Thu Nov 13, 2008 10:51 pm

Global Downturn

Story: SC Global’s 3Q08 results saw net profit growing 121% yoy to S$9.6m on a 15% yoy revenue decline to S$25.5m. This divergence was due to higher margins compared to the year-ago period where sales were out of inventory instead of projects under development. Revenue recognition in 3Q08 was from Hilltops and The Marq in Singapore, as well as Kairong in Shenyang. We expect SC Global’s earnings to be stable over the next few quarters until it commences construction on Martin 38 in end-FY09 (33 launched and sold in 3Q08 at around S$2,100psf). We revise down our earnings estimates in FY08 and FY09 to account for slower sales and lower ASP assumptions.

Point: Operating cashflow for the company continues to be negative in 3Q08, due to an increase in non-cash working capital. Its gearing ratio continues to be one of the highest amongst the property developers at 3.4x, with its loans entirely secured against its properties. Financing for the remainder of its landbank projects at Ardmore and Sentosa have been secured, although construction tenders have not yet been called.

Relevance: Concerns of a prolonged global economic downturn, which dampen interest in property, could lead to a more stressed balance sheet for developers. As investors price in a worst-case sector scenario of zero sales, credit tightening or revocation, asset devaluation, and even potential customer default – highly-geared developers exposed to the high-end market with a lower percentage of locked-in sales end up standing out, all things being equal. As such, we factor a 70% discount to SC Global’s fair value (RNAV) of S$1.39 (prev S$1.25) to derive a target price of S$0.42 (from S$0.38). Adjustment to fair value arises from a marking-to-market of its stake in AV Jennings and a reduction in site cost for Ardmore due to a higher development baseline, leading to a lower development charge. Maintain FULLY VALUED.

http://www.remisiers.org/research//scgd131108%20FV%20dbsv.pdf
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Re: SC Global

Postby winston » Tue Nov 18, 2008 9:29 pm

Reassuring - but more needed from SC Global
By UMA SHANKARI

SC GLOBAL Developments last Wednesday reported a decent set of third-quarter results, posting a 121 per cent jump in net profit to $9.6 million. This was despite weaker sales as the company improved its pre-tax margins with higher selling prices for homes and lower sale costs and expenses.

But what was of more interest to market watchers was the fact that the company also announced that in order to boost its cash in hand, it recently drew some $100 million from its reserve facilities - a move that is a common practice for listed companies here. SC Global cited volatile financial markets and the credit environment in October and November as reasons for the move.

The developer's move also seems to be aimed at alleviating investor concerns about SC Global. 'SC Global is trying to tell the market that it does have the means to raise money if it needs to,' said one property analyst. The company had cash and cash equivalents of $67.4 million at end-September. Assuming that not too much of the newly raised money is spent over the current quarter, SC Global should be able to boost its cash and cash equivalents to well over $100 million by the end of this year.

The company also hinted in its Q3 results that its debt-to-equity ratio - which now stands at 3.38 times - could be reduced somewhat if its stake in Australian-listed AVJennings (AVJ) crosses the 50 per cent mark. Right now, SC Global's stake in AVJ stands at 49.63 per cent, and 'should the group consolidate AVJ as a subsidiary, it is expected to significantly reduce the group's gearing ratio', SC Global said in a filing to the Singapore Exchange (SGX).

SC Global's moves to improve its cash position and assure investors that gearing could be reduced in future are certainly commendable.

However, its stock has been battered, along with the general market, and despite all the good news - better earnings during a quarter where most developers saw profits fall, as well as the securing of $100 million of cash and the news that gearing could be lowered - its share price has not recovered.

SC Global has current liabilities of $13.5 million, while long-term liabilities stand at $1.3 billion, one analyst pointed out. In view of this, $100 million seems like a small amount, he noted. This view assumes that SC Global won't generate significant amounts of cashflow in the future by selling more units in its inventory.

DBS Vickers analyst Adrian Chua pointed out in a note a day after the results that operating cashflow for SC Global continues to be negative in Q3 2008 due to an increase in non-cash working capital, and that its gearing ratio continues to be one of the highest among property developers, with its loans entirely secured against its properties. But financing for the remainder of SC Global's landbank projects at Ardmore and Sentosa have been secured, although construction tenders have not yet been called, he added.

Right now, some analysts are pricing in a worst-case sector scenario of zero sales, credit tightening, asset devaluation, and even potential customer default - which has led to a plunge in SC Global's share price. The stock has lost 76.7 per cent so far this year.

While it is good that SC Global is taking steps to improve its cash position and gearing, whether the developer succeeds in convincing investors depends a lot on how much the general market sentiment improves or worsens going forward - and whether the developer continues to generate cashflow by selling more of its luxury homes.

Source: Business Times Singapore
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Re: SC Global

Postby millionairemind » Sun Aug 16, 2009 11:51 am

Published August 15, 2009

SC Global net falls 32% in Q2

SC Global Developments has reported a net profit fall of 32 per cent, to $7.8 million, for the second quarter ended June 30 from a year ago, dragged down by losses at its Australian unit AVJennings Ltd (AVJ) as well as a higher provision for share-based payments tied to incentive performance targets.


Revenue septupled to $226.4 million from the inclusion of revenue from AVJ. The group had in December 2008 raised its stake in AVJ to 50.03 per cent, making the latter a subsidiary.

Revenue during the quarter included progressive recognition of development projects in Singapore, including The Marq on Paterson Hill and Hilltops, based on progress of construction. Construction of another project, Martin No 38, also progressed to the stage where its maiden revenue recognition was included. In addition, revenue was recognised from Kairong International Gardens in Shenyang, China.

For the half-year ended June, revenue rose to $357.6 million from $75.5 million for H1 2008 due to the consolidation of AVJ's revenue, while net profit fell 40 per cent to $18.3 million.

SC Global said that sentiment in the property sector in Singapore has improved even though the economic statistics are currently not reflective of a full recovery. In addition, the two integrated resorts (IRs) slated to open early next year are anticipated to create further positive spin-offs for the economy.

In Australia, the remainder of 2009 will continue to be challenging for AVJ, but the group expects 2010 to show improved financial and operational performance. AVJ reported an after-tax loss of A$12.7 million (S$15.4 million) for the year ended June 30.

SC Global's total financial liabilities fell slightly to $1.64 billion at end-June, compared to $1.65 billion a year ago. The liabilities are predominantly long term in nature.

Source: Business Times Singapore
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Re: SC Global

Postby winston » Tue Sep 29, 2009 3:05 pm

Not vested. From DMG:-

SC Global: Crème de la crème (BUY\S$1.60\Target S$2.30)
Brandon Lee (62323891, [email protected])

Initiate coverage with BUY and S$2.30 target price, a 20% discount to our FY10F base case RNAV of S$2.88. We like SC Global Developments’ (SCGD) 93% (of RNAV) exposure to Singapore’s prime and luxury residential segments, which are exhibiting inchoate signs of recovery and renewed interest amid increased foreign purchases, improved macroeconomic indicators and upcoming IRs.

We remain confident of management’s proven calibre in setting benchmark prices for its exclusive projects, implying a high possibility of the stock trading up to or above our RNAV during a broader property upcycle. Unsold inventory of ~ 385 units (~ 905,000 sf in GFA) is more than sufficient for SCGD to ride on the high-end recovery within the next six to nine months. Net gearing of 2.46x should improve upon the progressive recognition of S$750m in unbilled sales.

Pureplay luxury residential proxy, characterised by benchmark pricing ability. SCGD is the only listed property developer offering pure high-end residential exposure in Singapore, where prices remain 15 – 25% off their 4Q07 peaks. Out of its 93% (of RNAV) high-end exposure, luxury and prime projects account for 94% and 6 respectively. For every 10% change in residential prices, we estimate its RNAV will change by 24%.

Management’s ability to set benchmark prices is unrivalled, best evidenced by an impressive 42 – 53% premium pricing of its three existing projects over nearby developments. SCGD also gives a regional real estate exposure through ASXlisted
50%-owned AVJennings and 60%-owned Kairong Developments, which both develop mass
affordable housing projects in Australia and China respectively.

Ample landbank to participate in luxury recovery, writedowns and defaults unlikely. SCGD’s unsold inventory of ~ 385 units should allow it to participate in an imminent high-end recovery, where management expects to occur nearing the IRs’ opening. Aside from three existing projects, management intends to launch Seven Palms in end-2009 or early-2010.

Book values for its residential sites appear inexpensive having written down S$30m in FY08. Despite a high proportion of foreign buyers for its projects, a historically low sub sale transaction rate and buyers’ strong holding power should remove worries of speculative activity and DPS defaults/walkaways.

Upside potential exists despite outperformance. SCGD outperformed the STI and its peers over the past year. However, we believe the stock remains undervalued at current P/B of 1.49x, vs. average of 1.81x during 4Q06 – 1Q07 when physical market for luxury projects first showed tangible recovery signs.

It hit an apex of S$3.34 (adjusted for sub-division) in Jul 07, 5 months before residential prices peaked in 4Q07.
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Re: SC Global

Postby winston » Thu Oct 08, 2009 12:53 pm

Dont quite understand. The rich are not stupid. So how come they were not buying when prices were very much cheaper ? :?

============================================

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Seven Palms Sentosa Cove units sold at record prices
Channel NewsAsia

SINGAPORE : Mainboard—listed high—end property developer, SC Global, said on Wednesday it has sold six units of its project at Sentosa for record prices.

The units of its Seven Palms Sentosa Cove development were sold at an average price of about S$11 million per residence, with prices ranging between S$3,100 and S$3,400 per square foot.

These are higher than the previous peak of about S$2,734 per square foot for a condominium unit at Sentosa Cove.

SC Global said it released about 10 units of the 41 available in the first phase of its sales through private previews.

Located at the southern—most end of Sentosa Cove, the development stands on an area of about 114,000 square feet.

The four—storey development features three, four and five bedroom units ranging from about 2,700 to 6,800 square feet.

Penthouse units are on the 4th storey and come complete with a private roof terrace, a 10—metre lap pool, and views of the sea, the beach lagoon and the Sentosa golf course. The penthouses range from 4,000 to 8,000 square feet in size.

Source: CNA
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Re: SC Global

Postby LenaHuat » Thu Oct 08, 2009 1:00 pm

They have just accumulated this pot. They were busily buying up stocks then, when prices were low.
Lots of foreigners are laundering their $$ in local properties. 2 years later, they would liquidate and end up with 'clean' money which they will take elsewhere. Am I right abt this :?: :?:
Please be forewarned that you are reading a post by an otiose housewife. ImageImage**Image**Image@@ImageImageImage
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Re: SC Global

Postby winston » Thu Nov 12, 2009 2:08 pm

Not vested. From DBS:-

SC Global’s 3Q09 PATMI of S$5m was down 31% qoq. Our analyst views SC Global as one of the best-positioned high-end developers, cheapest at 0.6x P/RNAV.

The group could also benefit from recovery in high-end market.

Upgrade to BUY, TP of S$1.69 (Prev S$ 1.64) offers 22% upside.
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