Sing Holdings

[behappyalways]

Announcement in SGX

Completion of Acquisition of 3 Robin Drive "Robin Court" and 1 Robin Drive, Singapore

Description

Further to the announcement made on 19 September 2010, Sing Holdings Limited is pleased to announce that its wholly-owned subsidiary, Sing Holdings (Robin) Pte. Ltd. (formerly known as Sing Realty (Singapore) Pte Ltd) has completed its en-bloc purchase of the properties at 3 Robin Drive "Robin Court" and 1 Robin Drive, Singapore yesterday

(PS: I would hope they launch this project earlier so that it can flip its shareholders fund faster)

[Chinaman]

Catch this faling knife...tomorrow result out liao.
It might be a positive report...can buy at 32 cts.

vested.

[ichew]

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

fy eps = $0.0245
div = $0.0075
abt 30% payout

[behappyalways]

Haa Haa Chinaman ^^ My kaki bought 200++ lots at 325 ^^

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

Been looking at the P/L statement trying to figure out where the 30% interest by their partners go to. But to no avail.

Bellerive contributes about $13m revenue while The Laurels contributes around $36m. Bellerive's gross profit margin around 10-15% so bulk of profit comes from The Laurels.

Lian Beng has a contract to build The Laurels within 34 months commencing Apr 2010. 9 mths have since passed and 25 mths to go, about 8 to 9 quarters. Group already accounted 11% as of Dec 2010 meaning 89% more to go. Average about 10-11% contribution per quarter.

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

In 4Q2010, Group accounted for 6% of the contracted sales for The Laurels. With 89% more contribution to go(90% sold and actual revenue would be higher as more units are sold), 4Q2010 can be conservatively used as an estimate for the next few quarters.

As for the land in Robin Drive.....They launched The Laurels in Feb/Mar and construction was awarded in Apr 2010. Acquisition of Robin Star is scheduled to be completed in May 2011, so my guess is that they might launched the project in 3Q or 4Q with construction being awarded in 4Q. My money is betting that they would launch this project as soon as it is possible subject to market condition as there are many land parcels for bidding, government or enbloc. If you are smart, you should flip and go to next piece of land and not tied up your capital and also to avoid taking unnecessary risk by holding on to too many land.

To add, I think the company should have a share buyback mandate. It is profitable to reduce the amount of shares at current price as we know there would be a jump in earnings in the next 2 years.

[behappyalways]

FYI

From The 2010 Annual Report....

Page 4....About 91% of the 229-unit development has been sold for approximately $635.7m

Page 5...(sold) another 3 additional units(BizTech Centre) in 1Q2011.

Compared with 4Q2010 results, company could have sold another additional $12m(2-3 units) of The Laurels and 3 units of BizTech Centre in Mar 2011.

[behappyalways]

Report by Kim Eng

http://www.remisiers.org/cms_images/ssu18042011ke.pdf

[behappyalways]

Today's AGM

Few notes.....

1. Board had a meeting a month ago to decide on share buyback. Conclusion is that they decide not to because they believe that fundamentals will determine share price and share buyback would only prop up the share price short term(PS: I don't agree on this). They felt that cash would be put to good use on buying land rather than on their shares.

2. The Robin Drive plot of land would not be launch so early. The CEO wanted to launch it to coincide with the Stevens MRT. So I think earliest could be next year....(PS: I think the govt supply and possible coming financial crisis gonna show that this is a bad decision)

3. They expect $180m revenue from The Laurels this year. Based on my estimate of 15-20% net profit margin, net profit for this year could be in the $30-36m range.

4. My personal view on the directors is that the company is in safe hands but they don't/(do not know how) to play the market. To create buzz......I wanted to ask them if they would declare a bonus issue if the company do well but I did not ask because like what they said earlier, they believe that the fundamentals would determine share price

Maybe others who attend the AGM would disagree with my notes or want to add his views....

å¿ å¿ ç›´ç›´...........

[ichew]

thanks behappyalways

[behappyalways]

Copied from Channelnewasia Market Talk

paul1688 wrote:
behappyalways wrote:
Today's AGM

(By Behappyalways)Few notes.....

1. Board had a meeting a month ago to decide on share buyback. Conclusion is that they decide not to because they believe that fundamentals will determine share price and share buyback would only prop up the share price short term(PS: I don't agree on this). They felt that cash would be put to good use on buying land rather than on their shares.

2. The Robin Drive plot of land would not be launch so early. The CEO wanted to launch it to coincide with the Stevens MRT. So I think earliest could be next year....(PS: I think the govt supply and possible coming financial crisis gonna show that this is a bad decision)

3. They expect $180m revenue from The Laurels this year. Based on my estimate of 15-20% net profit margin, net profit for this year could be in the $30-36m range.

4. My personal view on the directors is that the company is in safe hands but they don't/(do not know how) to play the market. To create buzz......I wanted to ask them if they would declare a bonus issue if the company do well but I did not ask because like what they said earlier, they believe that the fundamentals would determine share price

Maybe others who attend the AGM would disagree with my notes or want to add his views....

å¿ å¿ ç›´ç›´...........


(By Paul1688) It is always pleasant to see forumers like behappyalways sharing AGM notes and giving their short take (view). Thanks behapplyalways.

My view on the share buyback. Yes, share buyback (SB) does have a short term effect of proping up share price. However, we need to appreciate where Sing Holdings management is coming from. Companies use SB as a financially effective means to use excees funds to improve ROE. However, if a company has a better means to deploy the funds for growth, then this is normally a better way to use capital then just merely mopping back your own shares.

On the Robin Road launch, I happen to concur that Sing Holdings should time the launch to maximise pricing value. The Robin Road site is a great site, is a stone throw from Stevens Rd MRT and is freehold. The DownTownLine commence operation in 2015. Before the government measures, it is probably ok to launch it soon to bring in revenue stream sooner. Now, with the uncertainty associated with current property cylce, Sing Holdings management is probably right in seeking a launch timing closer to 2015 to maximise returns (balancing of course with opportunity cost of delayed launch).

I like the Sing Holdings profile in current uncertain times. It has a confirmed profit stream equivalent to its market cap. They seek manageable sized good plots, develop & sell, generate profit, seek another good plot ..... and so on. Being boutique style premium location developer play is now more prudent than amassing large leasehold landbank and being saddled with property cycle risks and cashflow concern.

So in short term, Sing Holdings can do with a catalyst to jerk up the price. Longer term the strategy of the management group seems sound. Of course, I wish too they can be more generous with dividends in meantime to reward current shareholders.

Disclaimer : Vested. Just my view. Not influencing anyone to buy or hold.


(By Behappalways)Notes - My personal take

A shareholder in the AGM was trying to explain to Mr Lee on the merits of doing a share buyback.NTA going to rise so it is a good time to do a share buyback and company does not really need to fully buy up the amount mandated. Hence not going to eat up on company resources. It would give a positive signal and also bring comforts to the existing shareholders that the share price is undervalued at the current value. But the director basically shuts off the idea for the board had a meeting on share buyback a month ago and feels that it does not bring long term benefits. Well you have to understand at where the director is coming from. He can't sell his shares so he is more on a long term view while minority shareholders depend mostly on appreciating share price.

The director sound offended when the same shareholder tries to explain to him and during the AGM, the director keeps on 'poking' fun at the shareholder. Sad to said most shareholders in the AGM was laughing in the 'joke' and not realising what is happening or going to happen to the shares they are holding......laughing their way to 'gas chambers'. I believe that when this company do well, the director would give good dividends but would the dividend plus share price be higher than the share price that shareholders pay in the first place?

The shareholder asked why didn't the company join SGX research scheme to make the company more 'visible' and the director said that he is in constant contact with analysts and the property projects already give the company a significant buzz.....The shareholder asked why the company's website was not updated....you can take a look at the website and click on investor relations....and I think director said that allocating of resources and bla bla bla.

When the finance manager(i think so) said that the company invest in Singapore Post shares, the shareholder ask if the company believe that property is what they do best, why invest in equity. If so, why not on own counter by doing share buyback, there was no answer.

I find it positive and negative that the director really think that fundamentals will determine share price. Look at Fragance Grp and Allgreen. Both reported good result although Fragance Grp decided to give a bonus issue. Look at their share performance...

My personal view is that the director is a honest person but not .....The director wish to have a buffer in the land bid. This is a plus and also a minus.....Minus is that you can see why company has problem winning bid in the open market and also why it has to hold on to the piece of land that they got.....personally I believe that if they have been more successful in their land bid, they would launch the plot of land in Robin Drive earlier

[iam802]

Behappyalways, is the Robin Drive plot freehold?

Don't think they highlight that in their web site?