Low Keng Huat (Singapore)

Hi jacmar, this counter has been going up recently. Maybe market anticipating 4c dividend?

(07-02-2017, 11:30 AM)ianphoon Wrote: Hi jacmar, this counter has been going up recently. Maybe market anticipating 4c dividend?

Yes I think the mkt is expecting 4c div. LKH can comfortably pay 4 c as this represents only about 50% of their CF and the westgate mall rental is going to start kicking in the last qtr. At 4c, div yield is a juicy 6.7%. What's more impt is that this is sustainable unlike those REITs that pay about 90%. LKH has a comfortable gearing of about 50%. this is expected to go up for the development project at serangoon. This is why I think they may not pay 4c in order to have a more comfortable gearing. 

I have requested Low Keng Boon at the last AGM to continue to give us 4c.(I very thick face one! ) Let's wait and see. In any case 3c still gives you 5% yield. Where to find a safe 5% div yield?

The Urban Redevelopment Authority (URA) has awarded the tender for a residential with first storey commercial site at Perumal Road to Low Keng Huat (Singapore).

The company beat out 10 other developers with the highest bid of $174.08 million for the 0.38ha site, which was launched for sale on 29 November 2016. The price works out to about $1,000 psf on the gross floor area.

The site is within proximity to the Dhoby Ghaut Interchange, Farrer Park Hospital and City Square Mall.

Offered on a 99-year lease, the land parcel could yield up to 200 housing units.

Edit: Opps, just realised Cyclone had posted something about this previously.

Wah can make money a not this project? Anyone has the numbers??

Results should be out soon.

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3 cents first & final + 1 cent special dividend per share

LKH declared 4 cents dividend for the financial period ended 31 January 2017

More details in http://infopub.sgx.com/FileOpen/20170331...eID=445644

Thank you Mr Low for not disappointing OPMI. LKH has a very strong b/s and they could pay 4 cents for the next 10 yrs if they want! For a property co that is almost net cash is hard to find. they got so much cash that they are increasing equity investment and FD too. They also have $32m invested in bonds that is paying 10%. I also want.

I am just waiting for the day when LKH is taken pte. I hope the day never come as I am happy collecting 6.2% div. good enough for me for my div stocks.

"Balestier Tower project had obtained approval for change of use from mixed retail/residential development to mixed retail/serviced apartment subject to certain completion conditions."

http://infopub.sgx.com/FileOpen/20170331...eID=445644

Tried to find details about the change, and if there is any cost involved.

https://www.ura.gov.sg/uol/guidelines/de...Appendix-A

Seems that the link mentions "change not required". If there is indeed no charge such a change to service residence usage would greatly improve the value of Balestier Towers!

http://hiddengeminvesting.blogspot.sg/20...arget.html

Low Keng Huat - Undervalued Gem - Target Price $0.89 (40% Upside)

Low Keng Huat (Singapore) Limited (“LKHS”) is a builder established since 1969. Today, its business has grown to encompass building construction, property development, hotels and investments.



LKHS is a deeply undervalued property development stock with a dividend yield of 4.65%. Its current share price is S$0.64 as at 21st April 2017.



Our conservative estimate for its RNAV per share = S$1.27



Note that the above estimate excludes any profits from Kismis Residences, Balestier Towers, AXA Tower Strata Sale, and Perumal Road Mixed Development. 



Initiate with Strong Buy, Target Price = S$0.89 (40% Upside), a 30% discount to its RNAV per share of S$1.27.



We believe a 30% discount to RNAV is reasonable as our estimate excludes future profits of the above projects. Our RNAV estimate will be adjusted upwards on further clarity of the above projects' profitability.



Deeply Undervalued Stock



Net Asset Value in Balance Sheet is recorded as: Historical Cost less Accumulated Depreciation. 



This is one of the rare Singapore property development stocks that records its properties using the Historical Cost method, which will significant undervalue the true worth of LKHS.



Net Asset Value = S$694m (As at 31st Jan 2017)



We have adjusted the value of LKHS properties based on the independent professional valuation* conducted on 31st Jan 2016. Market Values (MV) are conducted based on the Discounted Cash Flow Method and the Capitalisation Method.



* Details can be found in the LKHS 2016 Annual Report.



Adjust for MV of Paya Lebar Square Retail units (159 units): +S$132m

Adjust for MV of Paya Lebar Square Office units (4 units): +S$7m

Adjust for MV of Marine Parade Office units (2 units): +S$3m

Adjust for MV of Duxton Hotel, Perth: +S$89m (A$84m)



Total Adjustments = +S$231m

Revalued Net Asset Value (RNAV) = S$925m



Number of Issued Shares = 738.816m



RNAV per share = $1.27


*Disclaimer - We are long LKHS.

Appointment of The Ascott Limited as Operator for Serviced Residences at Balestier Road and Perumal Road

Low Keng Huat (Singapore) Limited announced that the Company’s wholly owned subsidiaries, Balestier Tower Pte Ltd ("BTPL") and Perumal Development Pte Ltd ("PDPL") have entered into separate Serviced Residence Agreements with The Ascott Limited ("Ascott") to manage the serviced residences of BTPL and PDPL at Balestier Road and Perumal Road respectively. Citadines Balestier Singapore is a 166-unit serviced residence while lyf Farrer Park Singapore is a 240-unit serviced residence. Both serviced residences are slated to open in 2021.

More details in http://infopub.sgx.com/FileOpen/20170804...eID=465528

Hi guys, I have some queries regarding the latest financial statement http://infopub.sgx.com/FileOpen/20170615...eID=457867

1st quarter ending april 2017
On pg6, I noticed there was an unsecured debt of $45m compared to none in the previous quarter
On pg7, from a cash generated of 126mm 2016 q1, it has become a loss of 165mm in 2017 q1

are these valid concerns?

vested 4000 shares