Sing Holdings

[Behappyalways]

1Q2016
http://infopub.sgx.com/FileOpen/SHL_1Q20...eID=403301

[sgmystique]

This is one property developer with a fairly straight forward business model. Just wondering what they are going to be doing once Waterwoods and Robin Residences are all sold. They will then be left with being a landlord at BizTech Centre and a whole lot of cash in  hand. 

I had met up with Lee Sze Hao during the AGM this year and they were defensive as always. Will only bid for land when they feel the costs make sense (I have no issues with that) and worst case scenario they will turn into landlords and play the waiting game.  

Behappyalways, you have been a long term follower of Sing Holdings. What would your thoughts be on the end game here.

[kbl]

Good morning Behappyalways san and everyone.

Fyi sir - RR QC not end of 2016. Is Dec 2017.

(ii) Qualifying certificate is not applicable to Waterwoods. With respect to Robin Residences, the qualifying certificate requires the company to complete the construction of the whole housing development and obtain Temporary Occupation Permit (“TOP”) by February 2016. In addition, the company shall sell all the dwelling units comprised in the housing development within 2 years of the issue of the TOP.

http://www.theedgeproperty.com.sg/tags/q...cate-rules

[bargainhunter]

Hi everyone,

I'm new to posting in this forum. Just posting what I think is the breakdown of the NAV of Singholdings. Current share price $0.32.

The company is now debt free.

Assuming they don't sell anymore units from now until end of June and collect the 111m in receivables (I assume the bulk of it is from the sold units of Robin Residences).

Listed net asset value $0.6368 less off the $0.0125 dividend paid =
Current NAV at $0.6243

PPE a negligible $0.0016
Equity Investment in Sing Investments $0.0107
Freehold Industrial property $0.067

The rest are my estimations ie mix and match between mainly net cash and balance worth of Robin Residences totalling $0.545:

Balance of 70% share of unsold units at Waterwoods $0.0173
Balance of 41 units (31% of the project) at Robin Residences $0.29
Estimated net cash $0.2377

[bargainhunter]

Good morning Behappyalways san and everyone.

Fyi sir - RR QC not end of 2016. Is Dec 2017.

(ii)  Qualifying certificate is not applicable to Waterwoods.  With respect to Robin Residences, the qualifying certificate requires the company to complete the construction of the whole housing development and obtain Temporary Occupation Permit (“TOP”) by February 2016.  In addition, the company shall sell all the dwelling units comprised in the housing development within 2 years of the issue of the TOP.

http://www.theedgeproperty.com.sg/tags/q...cate-rules

Just to add on, at the AGM, they said that even if they failed to sell another unit from now till end 2017, they will only be penalised about $4m or $0.01 of the stock price.

[bargainhunter]

This is one property developer with a fairly straight forward business model. Just wondering what they are going to be doing once Waterwoods and Robin Residences are all sold. They will then be left with being a landlord at BizTech Centre and a whole lot of cash in  hand. 

I had met up with Lee Sze Hao during the AGM this year and they were defensive as always. Will only bid for land when they feel the costs make sense (I have no issues with that) and worst case scenario they will turn into landlords and play the waiting game.  

Behappyalways, you have been a long term follower of Sing Holdings. What would your thoughts be on the end game here.

Until they win a bid for another plot of land, they will probably try to space out the sales of Robin Residences between now and end of 2017 to even out the earnings?  but that also means no urgency to sell.   [Image: undecided.gif]

[Behappyalways]

Thanks KBL,

Hi sgmystique

The balance sheet is pretty so there are many ways the company can play around.
Trade Receivables($110.558m) + Cash($41.877m) = $152m ('cash')

Current Liabilities and Non-Current Liabilities = $36.734m + $11.706m = $48m

'cash' minus Total liabilities = $152m - $48m = $104m or 26 cents per share (404m shares)

The bulk of the development properties are due To Robin Residences. They sold 7 units in March 2016 and 5 units in Apr 2016(Based on the announcement only 3 are sold since 69% of the units issued with option to purchase).

Let's say if they manage to sell 5 units of Robin Residences a mth they get to collect $10m -$15m or $30m - $45m per quarter. That's 7 to 11 cents per share.

QC or no QC I am quite confident that Robin Residences would be fully sold when the time comes based on the rate the project is selling.

If the company adopts the its policy of capital management (Page 80 Annual Report), their next investment should be partially covered with debts. Hence personally I feel that their cash level might be higher than necessary.

I doubt they would privatise the company because that would meant a pool of shareholders' fund might not be avail to them unless they can privatise it at a low price (Take note their trading properties $26.858m are trading at cost). Most probably a special payout if the cash hoard continues to accumulate. Sing Holdings bought some Sing Inv shares recently

Did Lee hint of a payout during the agm?

[bargainhunter]

he only hinted that the dividends for Q1's profits will only be paid out after the end of the FY. I think they are keen to use part of the cash hoard + debt to acquire government land sales sites.

[bargainhunter]

Thanks KBL,

Hi sgmystique

The balance sheet is pretty so there are many ways the company can play around.
Trade Receivables($110.558m) + Cash($41.877m) = $152m ('cash')

Current Liabilities and Non-Current Liabilities = $36.734m + $11.706m = $48m

'cash' minus Total liabilities = $152m - $48m = $104m or 26 cents per share (404m shares)

The bulk of the development properties are due To Robin Residences. They sold 7 units in March 2016 and 5 units in Apr 2016(Based on the announcement only 3 are sold since 69% of the units issued with option to purchase).

Let's say if they manage to sell 5 units of Robin Residences a mth they get to collect $10m -$15m or $30m - $45m per quarter.  That's 7 to 11 cents per share.

QC or no QC I am quite confident that Robin Residences would be fully sold when the time comes based on the rate the project is selling.

If the company adopts the its policy of capital management (Page 80 Annual Report), their next investment should be partially covered with debts. Hence personally I feel that their cash level might be higher than necessary.

I doubt they would privatise the company because that would meant a pool of shareholders' fund might not be avail to them unless they can privatise it at a low price (Take note their trading properties $26.858m are trading at cost). Most probably a special payout if the cash hoard continues to accumulate. Sing Holdings bought some Sing Inv shares recently

Did Lee hint of a payout during the agm?

I think part of the receivables/cash belongs to their 30% partner for the waterwoods project as indicated by the $18m+ in non-controlling interest.  Also, the total number of shares i 401m.

[Behappyalways]

Yes bargainhunter,

You are correct. Thanks for pointing out my mistakes.

It should look like this

The balance sheet is pretty so there are many ways the company can play around.
Trade Receivables after deduction minority interest($92.558m) + Cash($41.877m) = $134m ('cash')

Current Liabilities and Non-Current Liabilities = $36.734m + $11.706m = $48m

'cash' minus Total liabilities = $134m - $48m = $86m or 21 cents per share (401m shares)