InvestIdeas

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

UNITED ENGINEERS LIMITED IN NEGOTIATIONS WITH OCBC ON REDEVELOPMENT AND MANAGEMENT OF THE FORMER SPECIALISTS’ CENTRE AND HOTEL PHOENIX SITE

from FY09

num of sh = 301.493m
NAV = $3.43

investment ppty = $912.978m
devlpt ppty = 0
ppty held for sale = $260.81m
=> abt $3.89 per sh
Major Properties Held By The Group (AR08 pg 125)

cash = $318.192m
=> $1.05 cash per sh

equity = 883.464m
debt = $423.625m + 340.017m = 763.642m => $2.53 per sh
d/e = 0.86

qxing78 wrote:I wonder the earnings and NAV dilution effects due to the convertible bonds at the end of period.
Becos the ratio is 3 CB for every 5 shares.

convertible bonds =
$132,974,599 in aggregate principal amount of Convertible Bonds due 2014.
Conversion Price = $1.34. can be converted anytime.
99,234,775 shares may be issued if all of above r converted

as at 31dec2009, there r $87.117m convertible bonds which r convertible into 65.013m sh
so abt 34m converted liao.
i assume more will be converted to get the $0.09 div

the dilution for FY09 is as follows:

basic EPS = 22.1cents
diluted EPS = 18.5cents

NAV = $3.43
diluted NAV = $2.91

diluted EPS calc assume conversion of all convertible bonds
i got this from their recent FY09 announcement
see pg 10 of 17 of their FY09

Published June 8, 2010

OCBC picks UE to build Orchard hotel-cum-mall

Redevelopment of Specialist Centre, Hotel Phoenix site to cost some $550m

By CONRAD TAN

By CONRAD TAN OCBC Bank has appointed property group United Engineers to build a hotel and shopping mall at the former Specialists' Shopping Centre and Hotel Phoenix site at Somerset.

UE will develop the site and also arrange for its financing; then sell the entire project to OCBC at a yet-to-be disclosed price.

The project will cost some $550 million to develop and is expected to be completed by the second half of 2013, according to UE. When completed, the entire project will be sold to OCBC.

That arrangement allows OCBC to retain ownership of the prime Orchard Road property after the redevelopment is complete. Under rules introduced by the Monetary Authority of Singapore in 2000 to separate banks' financial activities from their non-financial activities, Singapore banks cannot engage in developing or managing hotels or other properties, although they are allowed to hold properties for investment.

OCBC had said in March that it was in discussions with UE to redevelop the site, which sits between the recently opened 313@Somerset and Orchard Central shopping malls.

UE will develop the site and also arrange for its financing, OCBC said in a statement yesterday.

When contacted, an OCBC spokesman declined to say how much the bank is paying UE in development fees.

The fees 'are expected to contribute positively' to UE's future earnings, the developer said in a separate statement.

UE expects to start construction on the site next month.

It will fund the project with a mix of its own cash and bank loans.

It will develop the project through two wholly owned special-purpose vehicles - UE Orchard and UE Somerset.

UE Orchard, which will have an issued share capital of $500,000, will be responsible for the construction of the hotel and retail mall, as well as a pedestrian bridge linking the new development to the former Orchard Emerald site, which is owned by OCBC's insurance unit, Great Eastern.

UE Somerset, which will have an issued share capital of $200,000, will develop an underpass that will also link the new development to the former Orchard Emerald site.

Upon completion of the project, UE Orchard and UE Somerset will be sold to OCBC, which has agreed to buy both companies' shares and repay any outstanding shareholders' loans - money owed to their parent, UE - at the time.

OCBC declined to say how much it expects to pay UE for the entire project on completion, but the price will be based on the net tangible assets of UE Orchard and UE Somerset at the time, plus the amount of any outstanding shareholders' loans.

UE result gg to release soon , should be a good 1...they have many projects in hand...and at current market developers are making handsome profit.

I expect it to spike above 2.30....well it a bias comment cos i m vested...today closed at 2.23

but i still see this 1 got potential with current hot property market, every projects easily cope in 15%-20% profit..with bro OCBC bank backing from behind....T.P 2.50

Chinaman wrote:result gg to release soon

UE 1H 2010 result has already been released on 12-Aug-2010. The company financial year on on December.

Refer to the following for more information.

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

Revenue('000): S$418,777
Net Profit Attribute to Shareholders('000): S$62,441
Dilute EPS on 1H 2010:19.9 cents
Dilute NAV:$3.53.

Vested.

Yes, promising streams of revenue for the next 5 yrs. It's also on my radar.

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

YTD 3Q Net Profit Up Nearly 200% to $96.9 million or $0.31
2009 FY results was $49m or $0.18 eps
2009 div = $0.09
i wonder if i will see a $0.15 div?

http://info.sgx.com/webcoranncatth.nsf/ ... penelement
UE proposes a spin-off (the “Listing”) of its engineering and construction business

UE share price responded positively to this "spin-off" news. So far, it went up 7 cents trade at $2.67 with a volume of 410 shares transacted.

According to the announcement, the company don't intend to distribute any special dividend from the IPO proceeds.

"It is expected that the net proceeds due to the Company may be utilised for investments, debt
repayments, and general corporate and working capital purposes."

As for the dividend for this year, I think it'll be at most 10 cents to 12 cents since the company need money to repay their debts as well as for working capital e.g. development
of the OCBC land @ orchard road etc.

vested.