Second Chance Properties

Second Chance Properties

Postby winston » Fri Nov 14, 2008 6:30 pm

He has successfully transform the company from a retail company to a property company. I recalled buying some clothes from his Second Chance stores many years ago. The reason why he name his shops Second Chance was becuz he went bankrupt once and he wants a Second Chance.

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Second Chance an undiscovered property play
By R SIVANITHY

ONE of the more interesting corporate developments over the past few weeks may have gone unnoticed by most investors - an offer to listed retail-cum-property group Second Chance Properties (SCP) to buy the company's entire property portfolio.

While some companies might have jumped at the chance of a large cash windfall (something all shareholders would surely welcome because it would mean a big payout), what's interesting about it is that SCP on Wednesday announced that it had decided to reject the offer. The reason? It doesn't need the money!

'We have been accumulating properties since 1999 at attractive prices and have managed to build up a sizeable portfolio,' said SCP's chief executive Mohamed Salleh in an interview with BT. 'All our core businesses are doing well, our gearing is low and the offer, which was unsolicited in the first place, was not attractive so I didn't want to waste the company's time pursuing it.'

SCP on Oct 20 disclosed that it had been approached by an international property consulting firm on behalf of an unnamed client who was interested in buying SCP's entire property portfolio for an undisclosed sum.

As at June 30, SCP owned 42 properties valued at $118 million, of which 39 are spread throughout Singapore and three are in Kuala Lumpur.

The Singapore portfolio comprises mainly shop units in shopping malls in the Orchard Road area and in HDB hubs. Net rental per year is about $7.5 million.

'We have very low gearing and all our properties are tenanted with leases of 2-3 years that provide a steady rental stream,' said Mr Mohamed Salleh.

'Even with the downturn, we've found that demand for retail premises is high so there's no problem finding tenants. Of course if things get much worse, we may have to accept lower rentals, maybe 10 per cent. But for now, there is still plenty of demand.'

SCP this week reported a 22.4 per cent increase in its first quarter revenues to $19.2 million. Net profit was down 2.8 per cent to $5.4 million. The company has proposed an interim cash dividend of 2.5 cents per share and is also proposing a share buyback scheme.

'We want to do a buyback because our shares have fallen to a large discount to our NTA (net tangible assets) of 30.4 cents,' said Mr Mohamed Salleh. SCP's shares yesterday traded at 20 cents, a 34 per cent discount to NTA and indicating a dividend yield of 12 per cent.

If SCP presents an attractive investment story, why has its shares languished from lack of attention? One reason is a misplaced perception - despite the company's name - that it is mainly a retail company specialising in female Islamic apparel.

This, in turn, has led to an absence of adequate research coverage by broking houses which tend to view the firm as a retail play - with all the associated slow-growth connotations that accompany the sector.

Truth is, although SCP counts the retail sector as one of its core businesses, it should also be viewed as offering decent property exposure. In fact, it may be one of the local market's undiscovered - and possibly undervalued - property plays.
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Re: Second Chance Properties

Postby ngcheeki » Thu Aug 26, 2010 9:41 pm

As expected, SECOND CHANCE PROPERTIES LTD announced pre-committed dividend of 3.8 cents per share. This
worked out to be 10.4% of dividend yield based on today closing price of 36.5 cents.

Furthermore, the company issued a pretty positive statement for the coming year. The following is extracted
from the company forward statement.

I'm expecting 2nd chance to declare next year dividend of at least 4 cents per share. By the way, 2nd chance declared their dividend one year in advance.

Refer to the following for more detail of their ful year result.

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

Forward statement:

"The retail industry is now stabilising after recovering from the last financial crisis. The strong
rebound in the economy, coupled with the high increase in tourist arrivals and low
unemployment augurs well for retailers.

First Lady Singapore after suffering a substantial drop in revenue and profits, is now poised to
recover. First Lady Malaysia has performed reasonably well and is expected to continue with its
expansion.

In spite of a drop of 3% in revenue, the gold business has done better due to the higher gross
margin resulting from the increase in gold prices. Its continued good performance can be
expected this year.

Total rental income has surpassed that of last year due to the inclusion of five months rental
from Sim Lim Square shop units purchased recently. A much higher total rental income can be
expected in the current financial year.

Generally, retail rents and capital values for our properties have recovered and should
inch upwards.

Interest rates are expected to remain at very low levels in the foreseeable future, which will be a
positive factor for the Group’s interest expenses.

Barring any unforeseen circumstances, the Directors are confident of another good year ahead. "

Tomorrow, we are likely to see a slight jump in share price just like pertama :) :).

Vested.
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Re: Second Chance Properties

Postby woonlm492 » Sun Oct 10, 2010 8:19 pm

I have been looking at this counter too, but if we look back into her dividend payment records, we will see that the dividend payout is not consistent and it fluctuates. If I remembered correctly, she gives out dividend only once a year, am I right ?
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Re: Second Chance Properties

Postby ngcheeki » Mon Oct 11, 2010 12:19 pm

woonlm492 wrote:we will see that the dividend payout is not consistent and it fluctuates. If I remembered correctly, she gives out dividend only once a year, am I right ?


Hi,

The following is extracted from the annual report AR 2009.

Dividend (net)
2005 2 cps
2006 2.4 cps
2007 2.7 cps
2008 3.0 cps
2009 3.5 cps
2010 3.8 cps

Based on the above information, the dividend are increasing and stable.

Yes, the company only gives out dividend once a year.

not vested.
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Re: Second Chance Properties

Postby kennynah » Mon Oct 11, 2010 12:35 pm

is it not usual for singapore listed companies to only dish out dividends once annually?
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Re: Second Chance Properties

Postby winston » Fri Aug 26, 2011 6:51 pm

Not vested

Second Chance's FY11 net profit surges 87%, plans 3.2 cents/share dividend
By CARINE LEE

Second Chance Properties Ltd on Friday reported a 87.81 per cent surge in net profit from S$16 million to S$30.06 million for the financial year ended June 30, 2011, due to gain on fair valuation of properties in the last quarter.

Net profit for the fourth quarter ended June 30, 2011 rose 179.54 per cent year on year from S$6.70 million to S$18.72 million. Revenue for the quarter rose 9.88 per cent to S$11 million.

Revenue for the full year grew six per cent to S$49.07 million from S$46.27 million the previous year.

A dividend of 3.2 cents per share has been proposed, down from 3.8 cents per share the previous year.

'The dividend amount per share would have been 4.0 cents per share had the bonus issue not been done in April 2011,' said the company.

http://www.businesstimes.com.sg/sub/lat ... 63,00.html?
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Re: Second Chance Properties

Postby winston » Wed Nov 02, 2011 12:46 pm

Not vested. I still remember the shirt that I bought from his shop 3 decades ago :P

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

INTERVIEW-Second Chance eyes spending S$250 mln on properties

SINGAPORE, Nov 2 (Reuters) - Singapore's Second Chance Properties Ltd , hopes acquisitions of about S$250 million ($195.6 million) worth of real estate assets, will help it to double its profit from properties in about five years, said its chief executive.

Second Chance, which started out making traditional clothes for the Malay community, began buying retail properties as a means to control its rents and picked up a slew of assets on the cheap during the Asian Financial Crisis.

Now, it has 74 properties worth S$181 million, two of which are office units and the rest retail shops.

"Four to five years down the road, we expect net profits from properties to be S$30-40 million, if our plan goes as planned," said Mohd Salleh Marican, founder and chief executive of Second Chance.

He added that the company will be able to achieve this as it expects to be able to acquire S$250 million worth of properties over the next five years.

Second Chance's properties contributed S$21.24 million in profit before taxes for the full year ended June.

Its group net profit rose 87.8 percent in fiscal 2011 to S$30.1 million.

Source: Reuters
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Re: Second Chance Properties

Postby winston » Tue Mar 13, 2012 11:57 am

not vested

Second Chance Properties is trading at 8.8% dividend yield and 5.6x T12M P/E.

It has a reasonable gearing of 0.37x, with bulk of its assets in retail properties in Singapore.

It has a growing DPS of 15.0% CAGR over FY07‐11, backed by strong and stable cash flow from operations
where they achieved S$9.0‐S$12.0mil every year in the past five financial years.

Source: AmFraser
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Re: Second Chance Properties

Postby winston » Fri Jan 02, 2015 6:10 pm

mot vested

Second Chance (S$0.445)
Q1 profit drops 56% to S$1.7m

Second Chance Properties' net profit for the three months ended Nov 30, 2014 - its fiscal first quarter for FY2015 - plunged 55.8% to S$1.7mil.

Revenues over the same period fell 4% to S$8.84mil.

EPS stood at 0.25 Singapore cent, while NAV per share was 38.73 cents.

No dividend was declared for the quarter.

Source: The Business Times
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Re: Second Chance Properties

Postby behappyalways » Thu Oct 29, 2015 7:10 am

Second Chance Properties' 4Q earnings plummet 63.3% to $2.1 million
http://sgx.i3investor.com/servlets/fdnews/55060.jsp
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