Hiap Hoe

Hiap Hoe

Postby starbugs » Sun Jun 06, 2010 9:21 pm

P/E less than 6. RNAV more than 90cents. Profits more or less assured for the next 3 years from the properties it has already sold and will be collecting progressive payments.

Price now 39c and corrected from around 55 cents. Candlesticks, RSI & MACD shows Hiap Hoe is ripe for a strong rebound.

Quoted from a post in the Nextinsight forum

1. Skyline 360: net saleable space: 123,192 sq ft, land cost: $756psf, other cost: $450psf, breakeven: $1,206psf, average selling price: $1,950psf, gross profit = ($1,950-1,206) X 123,192 = $91.65 million.

2. Waterscape: net saleable space: 213,437 sq ft, land cost: $609psf, other cost: $430psf, breakeven: $1,035, average selling price: $1,750psf, gross profit = ($1,750-$1,035) X 213,437 = $152.6 million.

3. The Aspine (60% stake in project): net saleable space: 79,800 sq ft, land cost: $1,870psf, other cost: $450psf, breakeven: $2,320, average selling price: $2,000psf, gross profit = ($2,000-$2,320) X 79,800 X 60% = $15.32m loss (60% share of total loss)

4. Hotel/SOHO project in Ah Hood Road (50% stake in project). Gross floor area = 426,000 sq ft. Company bought the land at $172 psf, compared to analyst estimate of fair value of $350-470psf. To be conservative, we use a gross profit of only $250psf for this project. Gross profit = $250psf X 426,000 = $106.5 million, and Hiap Hoe’s 50% stake in it is equal to $53.35m.

Total gross profit above = $282.28 million, compared with mkt cap of $166.4m. RNAV should surge to $1.08. Co will experience big earnings and RNAV growth next 1-3 years, with huge cash inflows in next 2-4 years.

Co is one of the most exposed (in % terms of co’s projects) to the Orchard Road vicinity, and if analysts’ touting growth in prime area prices are correct, then it will not have problem selling its Orchard area condos. It’s hotel exposure will also benefit if the IRs take off next few years."
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Re: Hiap Hoe

Postby starbugs » Mon Jun 14, 2010 8:33 pm

MACD crossed decisively last week. 100 lots scooped up at $0.39 today.

Prime properties still in demand, as seen from $36mil Sentosa Cove deal.

In fact, in April, Hiap Hoe sold one 1,894 sqft Waterscape unit $2,173 psf or $4,117,000. Both psf and absolute price are record highs for the development.

Another unit at Signature at Lewis fetched a $1476 psf in the same month, also a new record.
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Re: Hiap Hoe

Postby LenaHuat » Mon Jun 14, 2010 9:31 pm

Hi starbugs :D
What do U think abt HH's purchase of Pender Court for $95m?
I don't think that's a good buy. It might be 5 minutes to HarborFront but it's in a pretty messy neighborhood.
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Re: Hiap Hoe

Postby starbugs » Mon Jun 14, 2010 10:47 pm

LenaHuat wrote:Hi starbugs :D
What do U think abt HH's purchase of Pender Court for $95m?
I don't think that's a good buy. It might be 5 minutes to HarborFront but it's in a pretty messy neighborhood.


Ya, Hoi Hup (not to be confused with Hiap Hoe) seems to have paid a steep price. $1007 per square per plot ratio. Break even say $1,400psf. I wouldn't pay this kind of price for that area.
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Re: Hiap Hoe

Postby LenaHuat » Tue Jun 15, 2010 10:54 am

Hi starbugs :D
Thanks a million for this correction. I've mistaken one HH for the other HH :oops:
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Re: Hiap Hoe

Postby starbugs » Tue Jul 06, 2010 8:00 pm

Hiap Hoe jumped by 1.5c to 41.5c today. Up almost 10% up since my buy call 1 month ago. Bumper profits for Q2 on the way. 8-) 8-)



Jul 6, 2010
Prices of prime district homes at new high

Outlook for rest of year less rosy as uncertainty in global economy likely to keep buyers away

By Jessica Cheam

PRIME property prices are at record highs having surpassed the peak seen in the first quarter of 2008, according to Jones Lang LaSalle (JLL).

Prices of prime homes - in Districts 9, 10 and 11 - shot up 8 per cent in the second quarter, hitting an average of $1,350 psf.

However, prices for luxury prime properties - those in the same districts but at least 3,500 sq ft in size and with ultra-luxurious fittings - are still about 8.4 per cent below the last peak in 2008, at about $2,500 psf.

Early government estimates last week said private home prices rose a higher- than-expected 5.2 per cent in the second quarter after a 5.6 per cent jump in the first.

JLL's report yesterday noted that price growth has been supported by an improved rental market.

Prime rentals have grown by an average of 10.8 per cent over the first half of the year, supported by increased demand from expatriates in the financial and petrochemical sectors, said JLL.

Investment sales also appear healthy.

DTZ Research said in a separate statement yesterday that investment sales for the second quarter posted a 64.1 per cent increase over the previous three months to hit $4.71 billion, of which 58.3 per cent were from residential transactions.

This was driven by a record-breaking quarter in sales of government sites earmarked for residential use. These totalled $1.85 billion in the second quarter, surpassing the $1.51 billion record set in the last quarter of 2007.

However, the outlook for the rest of the year is not as rosy.

JLL's head of research, South-east Asia, Dr Chua Yang Liang, noted that until buyers can predict the impact of the euro zone crisis on the property market, there will be further slowdown in both sales volume and price growth for the next six months.

JLL said the uncertainty in the global economy has kept buyers at bay: 3,127 caveats were lodged in the second quarter, a 21.6 per cent drop from the previous quarter.

Still, this is 78.4 per cent above the average of 1,753 units sold per quarter from 2000 to last year, noted JLL, whose figures are based on Urban Redevelopment Authority (URA) data as of June 26.

Its report found that the number of foreign buyers are falling - down 28.3 per cent to 898 in the second quarter compared with the previous quarter, while the number of local buyers slid by 21 per cent to 2,112 over the last quarter.

Chinese buyers are proving the most resilient.

They accounted for 18.5 per cent of caveats lodged by foreigners for resale private apartments in the second quarter - up from just 6.2 per cent in the first quarter of 2007.

JLL's head of residential, Ms Jacqueline Wong, noted that increasingly, 'Chinese buyers are climbing up the price ladder and buying up properties in the prime market which is traditionally dominated by the rich Indonesians and Malaysians'.

These are high-net-worth individuals who can spend at least $2.5 million, she said.

The caveats lodged by Chinese buyers for resale units priced $1.5million and above are more common today than a year ago, she added.
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Re: Hiap Hoe

Postby kennynah » Tue Jul 06, 2010 8:05 pm

starbugs wrote:Hiap Hoe jumped by 1.5c to 41.5c today. Up almost 10% up since my buy call 1 month ago. Bumper profits for Q2 on the way. 8-) 8-)


wow...congrats !!!

i wonder, though... does it usually move by $0.0005 steps?
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Re: Hiap Hoe

Postby LenaHuat » Tue Jul 06, 2010 9:45 pm

Good 4 U :D ,starbugs
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Re: Hiap Hoe

Postby starbugs » Thu Jul 15, 2010 9:04 pm

Hiap Hoe's "The Beverly" is near UOL's "Terrene" and cheaper at just under $1,000psf. The rest of the Beverly should soon be sold out in no time.

----------------
More than 100 units of Terrene at Bukit Timah sold

By Janice Teo | Posted: 15 July 2010 2049 hrs

SINGAPORE : Property developer UOL Group has sold more than 100 units of its latest condominium project, Terrene at Bukit Timah.

This is almost 80 per cent of the 130 units released at a private preview which started on July 8.

UOL will be releasing the remaining 42 units for the official launch on Friday.

The 999-year leasehold condominium is a 50-50 joint venture between UOL and La Salle Asia Investment Management.

The apartments are priced at an average of S$1,250 per square foot for a typical unit.

They range from S$719,000 for a one-bedroom unit to S$2.79 million for a five-bedroom penthouse.

UOL said 23 of the 30 penthouse units have been sold.

Demand came mainly from Singaporean buyers, with majority from private homes in the nearby vicinity.

The five-storey development of 172 units, stretches across more than 130,000 square feet near the Bukit Timah Nature Reserve.

The development is expected to be ready by April 2014. - CNA /ls
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Re: Hiap Hoe

Postby starbugs » Fri Jul 16, 2010 8:17 pm

44 cents today!
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