Sing Holdings

[behappyalways]

Sing Holding has finally replenished its land bank via en-bloc purchase of properties at 3 Robin Drive “Robin
Court” and 1 Robin Drive, Singapore (the “Property”). The total purchase price for the
Property is S$77.33 million, which works out to approximately S$1,363 per square foot per
plot ratio.

Total size of the land acquired after considered the plot ratio of 1.4x is 56,726 psf. The expected breakeven price
is $1,900 psf ~ 2,000 psf based on my calculation of construction cost of $450 psf. It's nearer MRT is steven
MRT station which will be completed in 2016. Will it be another "The Laurels"?

See the following link for more detailed.

http://info.sgx.com/webcoranncatth.nsf/ ... penelement
http://www.propertyguru.com.sg/project/robin-court-2350
vested.

The project will add 2-3 cents EPS(rough guess is $20m-$30m profit) to the earnings for the next 2-3 years depending on the selling price....If I am not wrong, the project is near to their Bellerive project which a lastest unit was sold for above $2000psf in August.....The company still need to hunt for more projects if they wish to maintain their earnings after The Laurel....

[ngcheeki]

Here is a report from L&T and guessed that the rationale of paying such as a price is because of the future Steven MRT station. Based on today share performance (33 cents), it seems like investors generally not too positive about the purchase.

http://www.remisiers.org/cms_images/res ... g_Hldg.pdf

Vested.

[behappyalways]

nah never trust what they said....just read the infor that they provide because due to their job, they have access to more infor than us....

A good stock investor is one who can manage his emotion while others around him are feeling otherwise......We do our numbers and if the infor are correct and numbers are correct...then just smile when people tell us otherwise ^^

Well emotions are hard to manage I have to say and I am still learning.......Cheers

[behappyalways]

To correct.....

The sale price psf for the latest unit of Bellerive Project sold was $1,802 psf

[ngcheeki]

Here is the view of Kevin Scully on Sing Holding replenishment.

"Given that Sing Holdings has utilised most of its land bank with the bulk of the Laurels and BelleRive sold, the key to unlocking the discount to its NAV from the profits of these projects is the rebuilding of its landbank. I mentioned this many times to investors in various investment seminars and conferences. This purchase while small at $77.3mn compared to the Laurels is in a prime location and even after adding S$300-400 psf for contruction is still able to generate a decent profit for Sing Holdings given that recent transactions in the same area are selling today at S$1900 to S$2200 psf."

see the following for his full view.

http://www.netresearch-asia.com/netrese ... log_no=584

By the way, one of the readers make an interesting comment on "Lafe" as an undervalued property counter. Besides, he also mentioned about Heeton and Hiap Hoe.

[winston]

Not vested. From Kim Eng;-

50% discount a good deal.

We estimate the RNAV for Sing Holdings to be $0.64. The stock is currently trading at a steep discount of 50% to its RNAV.

Although RNAV is sensitive to market prices, in this case the units have almost all been
pre‐sold and valuation is hence very minimally sensitive to market risk

http://www.remisiers.org/cms_images/ssu04102010KE.pdf

[ngcheeki]

Update: Sing Holding September 10
Cumulative Units Sold to-date: 193
Median Price ($psf) in the Month: N.A.
Units sold in September: 0
Cumulative Units Launched but Unsold: 36

There is no sale for the The Laurels. It seems like there is impact by the government new property policy
to control property price. However, with U.S. QE2 (i.e. money printing) and Singapore's monetary policy tightening by allowing Singapore $$ to appreciate higher, I'm expecting more hot money going to Singapore property market.

Vested.

[behappyalways]

As for 2Q10, their sales accounted 3% of The Laurels.....

Hope they account for higher percentage in the 3Q10...Up to now the gross sales proceeds for The Laurels is around $600m. If they account for 10% of The Laurels and taking 30% gross profit margin on the project, that would be $60m revenue with $18m gross profit.

With 400m shares, around 2-3cents earning per share for this quarter. Let's hope they can get a few more good piece of land parcels so that earnings would be maintained after The Laurels....

[behappyalways]

Fragrance Grp used to own 7.45m share as of 17 Mar 2010. Looking at Fragance's latest financial statement., it seems that Fragrance has been reducing its holdings. That explains the selling pressure on this counter although the selling has been well absorbed as Sing Holdings gonna starting booking its property sale in The Laurels.....

Fragrance's latest result....see held for trading investment

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

[Chinaman]

Hehe, my friend said this to me,

Feel SingHdgs 34 cts can buy 20 lots to keep. Two weeks target 42 cts, about 24% upside potential.