Keong Hong Holdings

I could not find this company listed.

This company jumped out in a screener when looking for companies which have high ROE / PTB ratio.

From what I could see, it listed in 2011 at an offer price of 24 cents.

Currently, it trades at 38.5 cents after 1 for 2 bonus in June 2014.

Dividend of 3 cents in 2014, so, seemingly high yield.

Seems to have got into EC development.

From SGX : The Housing & Development Board has awarded a land parcel at Sembawang Avenue Lot 6138X MK 13 (the “Land Parcel”) to the Company’s wholly-owned subsidiary, KH Capital Pte. Ltd. (“KH”) and FCL Tampines Court Pte. Ltd. (“FCL”), pursuant to the tender jointly submitted by KH and FCL at the tender price of S$214,080,000 for the Land Parcel for the purpose of development into an executive condominium (the “Acquisition and Development”).

Recently, also won a EC construction project. The Board of Directors of Keong Hong Holdings Limited (the “Company” and together with its subsidiaries, the “Group”) is pleased to announce that Keong Hong Construction Pte Ltd (“KHC”), a wholly-owned subsidiary of the Company has been awarded the building works amounting to S$118
million on Lot 2596W MK 21 at Edgedale Plains / Punggol Central (the “Project”) by MKH (Punggol) Pte. Ltd.

From bonus ex date of 12 June 2014 till date, it seems to have lost 6%.

I am evaluating this for adding to my portfolio and hence, want some thoughts from vested or divested holders.

Are there any VB out there who are vested in this?

Its TwinWaterfall EC which is fully sold gg to obtain TOP this year or early next year. So expect a boost in earning for next year.

Bought more today @ $0.385 : )

Declared 1.25cents final dividend.
Surprise no movement in share price, gg to buy more.

News of JV with FCT for residential development has already been covered before on fool.com.sg so dun think it can be considered an undiscovered gem anymore. Those who monitor prop. stocks would unlikely miss this news of Big Company and Small company.

What’s Behind Frasers Centrepoint’s Latest Business Partner?

Stock has doubled from lows of 20cents 2 years ago and only small discount to NAV now. Sure divs are good for short term but that is probably priced in already. Not sure if there is any value left to be unlocked? Downside risk now looks to be more than potential upside.

Starting new projects like the JV for residential E.C. in the current property climate with market likely to be depressed for some time yet will probably be a concern as well.

Balance sheet looks quite good though at the moment.

I expect Keong Hong's 1H15 (half year) profit to be higher than the full year profit for FY14 due to the booking of profit for Twin Waterfalls. I also expect Keong Hong to pay a special dividend in FY15. Hence, its share price may increase nearer May 2014 before it releases the 1H15 result.

I expect FY16 result to be weaker in the absence of profit recognition from property development. Nonetheless, the airport hotel in Kooddo island in Maldives will be completed in 2015 and will start to contribute to its top line and bottom line in 2015 while the resort hotel will start to contribute to its top and bottom line in 2016. FY17 result is expected to be good because of contribution from its two hotels at Katong, which is expected to open for business in 2016 and its Skypark Residence EC is expected to secure TOP in October 2016 (beginning of FY17).

337 units of its 506 units Skypark Residence EC have been sold. The average price is about $800 psf and the price has been cut to about $720 psf recently. Land cost is $317 ppr while construction cost is $224 psf. I think the breakeven point should be about $650 psf.

Note that the new EC site which it secures with Fraser CPT is next to Skypark residences and there should be some cost saving in the construction cost. Also, I expect more smaller units to be built to keep the per unit price less than $1m.

(vested)

J-gateway also Keong Hong's project

Keong Hong as a catalist construction company is probably outside the radars of many funds and investors.

Recent sales figures for Skypark Residences EC:
4 October 14: 311 units sold
13 October 14: 316 units sold
24 October 14: 318 units sold
26 October 14: 323 units sold
27 October 14: 324 units sold
29 October 14: 325 units sold
30 October 14: 326 units sold
4 November 14: 327 units sold
10 November 14: 328 units sold
16 November 14: 330 units sold
19 November 14: 331 units sold
21 November 14: 333 units sold
22 November 14: 333 units sold
22 November 14: 334 units sold
25 November 14: 335 units sold
26 November 14: 336 units sold
27 November 14: 337 units sold
30 November 14: 338 units sold
1 December 14: 340 units sold
2 December 14: 342 units sold

31 more units have been sold since 4 October 14. As of 2 December 14, 342 units out of 506 units have been sold (67.6% sold) and 164 units remain unsold based the information obtained from http://www.executivecondominium.sg/

The price cut has been very effective to move units. Apart form that, perhaps it is also because demand for EC remains strong and Skypark Residences is the first EC in Sembawang.

Keong Hong Twin Waterfall is 92% completed. Hope it can achieved TOP this month.