Sing Holdings

[behappyalways]

168 units of Waterwoods sold left 205 units -18 Mar 2014

6 March 2014

Sing Holdings Limited
96 Robinson Road
#10-01 SIF Building
Singapore 068899

Dear Board of Directors and Mr Lee

We are a group of shareholders writing in to express our concern with the share performance of Sing Holdings for the past few years. We are disappointed with the Board and Management inaction towards the under performance of the share price. Shareholders' call for a share buy-back has been resisted by the Board and Management as you feel that cash could be better utilised. But after so many years, we do not feel that we had benefitted from the growth of the company as much as the management. A share buy back mandate and when exercised would send a STRONG signal that the share price is undervalued and that the Board and Management support and share the minority shareholders' concern. With the current bearish property market sentiment, we feel that there is no better use of funds than to buy one's own undervalued shares. Therefore we strongly recommend a share buy back exercise.

With positive net current assets and receivables due from The Laurels Project, we hope you would seriously consider a sizeable dividend payout to reward shareholders' trust in the Board and Management over the past few years.

We deeply appreciate your time and effort in considering these suggestions.

Thank You.

Yours Sincerely
Shareholder A's name
Shareholder B's name
.....
.....
Shareholder E's name





Reply for CFO of Sing Holdings:

We refer to your email on 6 March 2014.

The Company shares your concerns and appreciates your suggestions. Following requests received from a group of shareholders recently, the Board convened a meeting to discuss on the suggestions mentioned in the emails. We would like to assure you that it is the guiding principle of the Board that for every decision it makes, it should be in the best interests of the Company and all shareholders, and to ensure sustainability and continual success for the Company in the long run.

The Company’s share price has been moving upwards steadily for the past three years to a high of 52 cents before declining around July 2013 (please refer to the Company’s 3-year stock chart attached). The decline in the share price corresponds to the introduction of the Total Debt Servicing Ratio (“TDSR”) framework by The Monetary Authority of Singapore in end June 2013. The impact of the TDSR on the Singapore residential property market was harsh, which in turn resulted in the fall in share prices of companies with substantial exposure to this segment, of which the Company is one.

With regard to a share buyback scheme, the Board is of the view that the basic criteria is that a company must have cash in excess of its operational and expansion needs. A share buyback mandate, when exercised, may not address the under performance of the share price as seen in the case of some local property / construction companies where the effect on share price is minimal. In fact, share prices of some of these companies are lower than before the shares were bought back.

In the context of our Company:

1. The Company’s core business of property development and investment is capital intensive. For long-term sustainability, the Company has to continue to expand its business amidst the tough market condition now. Even with external financing, much equity is needed to fund any acquisition and subsequently, the development and construction of projects. As such, ready funds are required to embark on any acquisition opportunities.

2. All our projects are funded through a mix of internal cash and bank borrowings. With the prevailing challenging market conditions, in order to withstand any downturn in the property market or the macro-economies as a whole, it is critical that a healthy cash balance is maintained to provide assurance to the banks for their continuous support.

3. The Company is in a net current assets position. However, assets such as development and trading properties are relatively illiquid, especially in this challenging environment where sales are slow. Furthermore, the receivables due from The Laurels project will be required for payment of outstanding construction costs, income tax and for profit distribution to our 30% joint venture partner in the project.


4. The Company’s cash position as at 31 December 2013 stood at about S$27 million, some of which were project accounts’ money with restricted use.


In view of the funding requirement as explained above and without a large cash float, the Board is of the view that it would not be appropriate for our Company to deploy its financial resources to embark on a share buyback scheme or to distribute a sizeable dividend, as these may curtail its ability for business expansion and compromise its financial position.

Notwithstanding the current property market condition, the intrinsic value of our Company remains strong. With this fundamental value in place, the Company believes that market forces will determine the fair value of the Company when market sentiments improve.

Yours sincerely
Tay Puay Kuan
CFO

[behappyalways]

175 units of Waterwoods sold left 198 units -31 Mar 2014

[behappyalways]

182 units Waterwoods sold. Left 191 units. -11 Apr 2014

[behappyalways]

188 units Waterwoods sold. Left 185 units.

50% sold.....

[behappyalways]

From the agm.....
In march the company was looking at a london property for rental income. Not sure if it is still in discussion. Seems like the company will try to go for a higher proportion of income from rental. They mention that they would sell biz tech units if price is good

(my take is that since they are going into investment property then the likelihood of a capital distribution is unlikely as it is capital intensive)


FY2013_Presentation slides.pdf
http://infopub.sgx.com/FileOpen/FY2013_ ... eID=292636

[behappyalways]

2013 Annual Report

Page 92

33. Capital management

.......
The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, RETURN CAPITAL TO SHAREHOLDERS or issue new shares........


2013
Group's share of interest-bearing bank loans .... $204,938m (as construction progress and more units of EC sold. amt will fall)
Less: Group's share of cash and cash equivalent... ($18,667m) (cash will increase as unbilled receivables of $107m are received)
Net debt...... $186,272m (net debt will decline significantly)
Equity attributable to shareholders of the Company ..... $225,578m
Net debt to equity ratio ...... 0.8 times (ratio will continue to fall...)

[behappyalways]

Seems like they are 'changing'......

Change - Announcement of Appointment::APPOINTMENT OF EXECUTIVE OFFICER
http://infopub.sgx.com/Apps?A=COW_CorpA ... OV13TIGC9H

[behappyalways]

went down to robin earlier. They are doing the carpark for visitors. Sentiment is not good so hope they can get good sales....

went down to robin road. They are setting up the showflat at the moment. The exterior for the showflat is up. Let's hope that they can launch the project in 1Q

[Jordankbl]

2013 Annual Report

Page 92

33. Capital management

.......
The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, RETURN CAPITAL TO SHAREHOLDERS or issue new shares........


2013
Group's share of interest-bearing bank loans .... $204,938m (as construction progress and more units of EC sold. amt will fall)
Less: Group's share of cash and cash equivalent... ($18,667m) (cash will increase as unbilled receivables of $107m are received)
Net debt...... $186,272m (net debt will decline significantly)
Equity attributable to shareholders of the Company ..... $225,578m
Net debt to equity ratio ...... 0.8 times (ratio will continue to fall...)

Good morning Behappyalways san

Yes. Hope the BD will return capital to shareholders.

[behappyalways]

They need to spend $$$ on property investment for rental income...So it depends on what kind of property they could get in the market.. That will take precedence over capital distribution