SHL Consolidated

SHL Consolidated

Postby winston » Thu Jul 24, 2014 6:57 am

not vested

Public Invest Research sees SHL Consolidated worth RM1b

KUALA LUMPUR: Public Investment Research sees SHL Consolidated (SHL), the master developer of Bandar Sungai Long, could be worth at least RM1.0bil or RM4.26 per share.

It said on Tuesday SHL has been sitting on low cost landbank in suburban areas with good accessibility and huge potential development value.

"Underpinned by the limited and expensive developments in and around the Klang Valley, we see stronger demand shifting towards suburbs, which bodes well for the company," it said.

To recap, SHL has more than 40 years of experience in broad-based residential, commercial, civil and infrastructure development and construction activities. It has completed more than 60,000 units of properties.

Listed in 1995, the company remains relatively low profile but has been a household name amongst the industry players and homebuyers.

The research house said SHL's hands-on and experienced management team coupled with established relationship with leading engineering consulting and architecture firms has positioned itself well within the pinnacle amongst industry players.

Public Investment Research pointed out SHL is well known for its redbrick housing design and also pioneering the concept of resort living. It cited its flagship project, Bandar Sungai Long with golf and country club facilities in the heart of development. Apart from Bandar Sungai Long, it has also expanded its property projects to Semenyih, Rawang and Shah Alam.

"SHL owns about 433 acres landbank (for property development purpose) in Selangor, Negeri Sembilan spanning across Bandar Sungai Long (48 acres), Semenyih (118 acres), Alam Budiman, (20 acres), Rawang, (10 acres), Batang Kali (88 acres), Serendah (48 acres) and Parit Tinggi (101 acres).

"However, the most interesting part is its 160-acre golf course land in Bandar Sungai Long, sitting on a book value of RM18 psf. Management has earlier hinted its interest of redeveloping and monetising the golf course one day.

"Based on the market value of RM130 psf, we believe this piece of land could be worth at least RM900m given the matured township status in Bandar Sungai Long. We also understand that its limited memberships would make it easier for the company to redevelop the golf course land anytime in the future.

Public Investment Research said SHL's land bank and properties have a market value of not less than RM1bil and could potentially double to RM2bn (if the redevelopment plan starts to kick in), which is a far cry as compared to its current market capitalisation of RM561mil.

It also said SHL's balance sheet and operating cash flow are solid. As at FY14, it has a net cash & short term liquid investments of RM306mil or RM1.27 a share.

SHL has been paying out generous dividend with a minimum of 8.0 sen per annum (60% payout) in the last five years, which translate into 3.5% dividend yield. It had recently announced a final dividend of 5 sen for FY14, making up 19 sen for the full year, which equals to 83% payout of total earnings.

Source: The Star
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Re: SHL Consolidated

Postby winston » Fri Nov 21, 2014 2:41 pm

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SHL Consolidated Bhd ( Financial Dashboard)

UNLIKE many property stocks, SHL Consolidated Bhd is cash rich and pays good dividends, with a yield of 4.8%. The company is expected to benefit from new launches at Bandar Sungai Long, Rawang Industrial Estate and Goodview Heights, Semenyih.

SHL is primarily a property developer, but has also diversified into supporting industries such as construction, quarrying and manufacturing of bricks and aggregates. For FY March 2014, property development accounted for 92% of sales and 79% of pre-tax profit.

The company owns a 160-acre golf resort, the centrepiece of its Bandar Sungai Long development, located a 15 minute-drive from Kuala Lumpur City Centre. This development is receiving increased interest following the building of the MRT line, which has attracted more developers to the Southern Klang Valley area.

SHL supplies its own clay bricks and granites, and operates Malaysia’s largest clay brick manufacturing plant with annual capacity of 144 million pieces.

The company has a solid balance sheet. As of 1Q2015, net cash stood at RM288.96 million or RM1.19 per share, equivalent to 32.9% of its current stock price of RM3.62.

For FY2014, sales increased 12.7% to RM205.3 million while pre-tax profit surged 68.4% to RM80.0 million. Investors should, however, note that its sales have been erratic over the last five years, falling from RM249.5 million in FY2010 to RM78.0 million in FY2012 before recovering to RM205.3 million in FY2014.

For 1Q2015, SHL recorded sales of RM 52.3 million, down 11.0%, but pre-tax profit rose 75.0% to RM23.1 million, due to better sales at its Rawang project.

The stock is trading at a 12-month trailing P/E ratio of 13.9 times and a P/BV of 1.47 times. The company paid dividends of 17.25 sen per share in FY2014, translating into a net yield of 4.8%.

Source: The Edge
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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