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26-12-2012, 05:57 PM
(This post was last modified: 26-12-2012, 09:00 PM by CityFarmer.)
A comprehensive view from dzwm87. Let me chip in as a shareholder
First of all, i agree with dzwm87 on the "opaque development plans and execution risks". No much detail on FR/AR, I hope to get clearer picture on next AGM. Execution risks is the same as other property developer in China, on top of it, we need to factor in more risk as ITG is new in property development.
That explains the current market valuation given to ITG.
But if the development plans is sound, and execution risks is much lower than we though, there may be a germ, right?
ITG got this unusual large piece of land (13.74 hectares) with a special price (S$23 million). What is the current market value? The land was pledged with local bank with value at least S$49 million (with loan of S$2.9 million with 6% of land).
At land cost of S$23 millions, it is approx S$0.14 per share (inc MI). At the valuation given by bank, it is approx S$0.30 per share (inc MI). The latest share price is S$0.142
The current development cost is supported by bank debt and internal resources
Well, ITG may perishes or it may prosperous. Base on my risk-reward study, i started with a small stake. I will continue to re-evaluate along with new info updated and small hints pick-up.
as usual YMMV
(vested)
First of all, i agree with dzwm87 on the "opaque development plans and execution risks". No much detail on FR/AR, I hope to get clearer picture on next AGM. Execution risks is the same as other property developer in China, on top of it, we need to factor in more risk as ITG is new in property development.
That explains the current market valuation given to ITG.
But if the development plans is sound, and execution risks is much lower than we though, there may be a germ, right?
ITG got this unusual large piece of land (13.74 hectares) with a special price (S$23 million). What is the current market value? The land was pledged with local bank with value at least S$49 million (with loan of S$2.9 million with 6% of land).
At land cost of S$23 millions, it is approx S$0.14 per share (inc MI). At the valuation given by bank, it is approx S$0.30 per share (inc MI). The latest share price is S$0.142
The current development cost is supported by bank debt and internal resources
Well, ITG may perishes or it may prosperous. Base on my risk-reward study, i started with a small stake. I will continue to re-evaluate along with new info updated and small hints pick-up.
as usual YMMV
(vested)
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡