LTC Corp (prev. Lion Teck Chiang)

[Musicwhiz]

strange, if it was supposed to be a vote by poll, then why did a vote by show of hands happened before that? can someone enlighten me?

Pretty simple. Most resolutions are voted on by a show of hands in order to simplify the process.

Some BOD, when they see that the resolutions they want put forth are not supported, then demand a vote by poll as they know the major shareholders (which may include themselves) will surely push through the vote.

Technically, once a vote by show of hands has commenced, the Company is not allowed to switch to a vote by poll. A good company secretary should ensure this. However, do note that company secs are under the employ of the Company and report to the BOD!

[Nick]

strange, if it was supposed to be a vote by poll, then why did a vote by show of hands happened before that? can someone enlighten me?

Technically, once a vote by show of hands has commenced, the Company is not allowed to switch to a vote by poll. A good company secretary should ensure this. However, do note that company secs are under the employ of the Company and report to the BOD!

Courts Asia Prospectus:

Except as otherwise provided in the Articles of Association of our Company, 2 or more Shareholders must be present in person or by proxy to constitute a quorum at any general meeting. Under the Articles of Association of our Company, on a show of hands, every Shareholder present in person and by proxy shall have 1 vote, and on a poll, every Shareholder present in person or by proxy shall have 1 vote for each ordinary share which he holds or represents. A poll may be demanded in certain circumstances, including by the Chairman of the meeting or by any Shareholder present in person or by proxy and representing not less than 10 per cent. of the total voting rights of all Shareholders having the right to attend and vote at the meeting or by any 2 Shareholders present in person or by proxy and entitled to vote. In the case of a tie vote, whether on a show of hands or a poll, the Chairman of the meeting shall be entitled to a casting vote.

Religare Health Trust Prospectus:

At the general meeting, a resolution put to the vote of the meeting shall be decided on a show of hands, unless a poll (before or on the declaration of the results of the show of hands) is demanded. Under the Trust Deed, on a show of hands every Unitholder present in person or by proxy shall have one vote, and on a poll every Unitholder who is present in person or by proxy shall have one vote for each Unit (whether Common Units or Sponsor Units) which he or she holds or represents. A poll may be demanded in certain circumstances, including by the chairman of the general meeting or by five or more Unitholders (including their proxies) having the right to vote at the general meeting or by Unitholders(s) (including their proxies) representing not less than 10.0% of the total voting rights of all the Unitholders having the right to vote at the general meeting.

SGX Prospectus:

Under our Articles of Association:
● on a show of hands, every shareholder present in person and by proxy shall have one vote; and
● on a poll, every shareholder present in person or by proxy shall have one vote for each share which he holds or represents.

A poll may be demanded in certain circumstances, including:
● by the Chairman of the meeting;
● by any two shareholders present in person or by proxy and entitled to vote; or
● by any shareholder present in person or by proxy and representing not less than 10% of the total voting rights of all shareholders having the right to attend and vote at the meeting.

However, no poll may be demanded on a question of the choice of the Chairman of the meeting or on a question of adjournment of the meeting.

Looking at the voting rights policies of the 2 recently listed companies / trust, I don't think this is wrong technically.

[Musicwhiz]

Thanks Nick. I stand corrected.

So I guess it's just a matter of whether they want to look good for shareholders. In a case like this, there was no necessity to!

[dydx]

Would Lion Teck Chiang be able to benefit from the expected further increase in demand and prices of Malaysian properties as a result of the on-going development of the Iskandar region in Johore and other cities further North, backed by increasing investment interests from Singaporeans and other foreigners? It does appear so.

In fact, p60/Note 12 of the latest FY12 (ended 30Jun12) AR carries a listing of completed properties held for sale in 3 projects located in Johore bahru, Melaka, and Selangor......
http://info.sgx.com/listprosp.nsf/07aed3...200247b62/$FILE/LTC%20AR%202012_SGX.pdf
and in p58/Note 9 it carries a separate listing of 4 other property development projects in Johore, Melaka and Selangor all under planning stage. So it looks like there is going to be a nice flow of future revenue and hopefully also profits from these projects in the years to come.

[dydx]

FY13 (ended 30Jun13) full-year results first released on 23Aug13.....
http://infopub.sgx.com/FileOpen/LTC_Full...eID=253611
Solid profit (OP, PBT and NP) numbers - boosted partly by another fair value changes/gain of $13.11m in investment properties (mainly related to the freehold industrial properties located at 10 - 16 Arumugam Rd, off Paya Lebar Rd) - with all the 3 core operating divisions of Steel Trading, Property Development, and Property Rental now becoming equally sizeable profit generators. Group NP up 9.8% YoY to $36.8m, translating to a high EPS of $0.2355/share. 30Jun13 Group B/S has been strengthened by increased accumulated profits/equity, a reduction in debts, and an increase in cash; NAV now stands at a new record $1.52/share. A slightly higher $0.0125/share (vs. $0.01/share in last FY12) Final dividend declared.

I suppose it is pretty obvious that Lion Teck Chiang with the last done share price at $0.80 is grossly under-priced.

[GFG]

FY13 (ended 30Jun13) full-year results first released on 23Aug13.....
http://infopub.sgx.com/FileOpen/LTC_Full...eID=253611
Solid profit (OP, PBT and NP) numbers - boosted partly by another fair value changes/gain of $13.11m in investment properties (mainly related to the freehold industrial properties located at 10 - 16 Arumugam Rd, off Paya Lebar Rd) - with all the 3 core operating divisions of Steel Trading, Property Development, and Property Rental now becoming equally sizeable profit generators. Group NP up 9.8% YoY to $36.8m, translating to a high EPS of $0.2355/share. 30Jun13 Group B/S has been strengthened by increased accumulated profits/equity, a reduction in debts, and an increase in cash; NAV now stands at a new record $1.52/share. A slightly higher $0.0125/share (vs. $0.01/share in last FY12) Final dividend declared.

I suppose it is pretty obvious that Lion Teck Chiang with the last done share price at $0.80 is grossly under-priced.

I agree that it is under valued, and I am vested sizably at $0.75.
But there are a few risks that I am monitoring:

The fair value gains of $13mil this year has to be taken into consideration. In FY12,11 and 10, fair value gains for the same Lion industrial buildings of $15.79mil, $6.3mil and $3.8mil respectively have been booked, providing a nice bump to profit. While these gains are valid recognition of the increase in valuation of their flagship property, the gains cannot go on forever. Residential property in singapore are starting to stagnate or turn south. When the tide turns for industrial properties, we may start to see "fair value losses" instead.

Similarly, the steel arm is involved mainly in providing steel for construction. Many of which are residential in nature. Any impact on property sector in Sg and malaysia will severely impact on Lion Teck Chiang.

7 Crescent bungalow project may potentially turn out to be a lemon too. As mentioned in the AGM, none of the units have been sold thus far. (One of the agents i called up to make some enquiries lied to me that some units have been sold, but wouldnt want to say which)
While the value is carried in the books at a very reasonable rate, the quantum (app $5mil) is very high in today's muted market. In addition, this project is not open to cash rich foreigners. LTC will likely look to rent out if we are unable to sell any units, but the rental yield is probably going to be in the low 2-3% range

These are the potential risks i can forsee. Still vested as there is a large MOS currently.

[GFG]

Draft Master Plan 2013 is out:
Doesnt look like there is any change to the flagship properties, Lion Buildings. If anything, its more likely to remain as industrials as there are nearby plots planned for industrials.
I think the market was largely disappointed, which explains the drop in share price today

FY14Q1 shows pretty reasonable results though. Overall Q1 profits decreased slightly from last year, but it has been increasing steadily over the last 5 years. I dont expect it to keep rising, so this current result is pretty decent.

They also managed to continue to increase the NAV, making today's closing price of $0.81 only 53% of NAV!
Added more to my current holdings today at $0.82.

Now heavily vested at $0.75 and $0.82

[mulyc]

This may be a good time accumulate.

vested

[opmi]

I thot at AGM, Board already said the current GFA already maxed out to GPR 2.5 already.

[GFG]

I thot at AGM, Board already said the current GFA already maxed out to GPR 2.5 already.

Yes, but markets were factoring in possible change of the site to commercial or a mixed commercial and residential development