Low Keng Huat (Singapore)

Dec 2011 The Minton
Total Number of units: 1145
Cumulative Units Launched to-date: 950
Cumulative Units Sold to-date: 819
Cumulative Units Launched but Unsold: 131
No on units sold in Dec: 10
Median Price ($psf): 923
It is 71.5% sold.

Full Year Result is out. Pretty good and declared a dividend 4 cents same as last year.

Net Profit attributable to shareholders('000'): S$85,937
EPS: 11.63 cents
NAV: 53 cents
Price to Book based on closing price of 46.5 cents: 0.88

Forward statement:
Business outlook is expected to be cautious and uncertain in 2012 due to the debt crisis in Euro zone, weak growth in USA and the slow down in the Chinese economy.

The Singapore GDP is expected to grow only by 1% to 3%. The unfavourable economic conditions, the imposition of Additional Buyers’ Stamp Duty in December
2011 on purchase of residential units, the increase in land sales and increase in number of BTO launches have dampened market sentiment. Despite these uncertain economic environments, we expect the property sector in Singapore to remain stable in the medium term. We remain cautious and will continue to be selective in our
project tendering. We will also continue to invest in business that will generate consistent revenue and profitability streams.

http://info.sgx.com/webcoranncatth.nsf/V...0002DE451/$file/20120329_LKHS_Ann_Full-Year-Results_FYE2012_Att.pdf?openelement

(29-03-2012, 06:33 PM)ngcheeki Wrote: Full Year Result is out. Pretty good and declared a dividend 4 cents same as last year.

Net Profit attributable to shareholders('000'): S$85,937
EPS: 11.63 cents
NAV: 53 cents
Price to Book based on closing price of 46.5 cents: 0.88

Forward statement:
Business outlook is expected to be cautious and uncertain in 2012 due to the debt crisis in Euro zone, weak growth in USA and the slow down in the Chinese economy.

The Singapore GDP is expected to grow only by 1% to 3%. The unfavourable economic conditions, the imposition of Additional Buyers’ Stamp Duty in December
2011 on purchase of residential units, the increase in land sales and increase in number of BTO launches have dampened market sentiment. Despite these uncertain economic environments, we expect the property sector in Singapore to remain stable in the medium term. We remain cautious and will continue to be selective in our
project tendering. We will also continue to invest in business that will generate consistent revenue and profitability streams.

http://info.sgx.com/webcoranncatth.nsf/V...0002DE451/$file/20120329_LKHS_Ann_Full-Year-Results_FYE2012_Att.pdf?openelement

Minton is more than 90% sold as at 23 March.
Paya Lebar is more than 75% sold.
These two will be the gold mines for next 2 to 3 years.
Park Residences will be tough.....only 40% sold...
It seems that Low Keng Huat can't launch a project well alone.
BLODDY DBSS!!!

Still the dividend is generous and minton/paya lebar will ensure good profits in short term...

Happy and vested

I sold off early due to my miscalculation that lkh will not be able to retain their dividend payment this time. I came to this conclusion by looking at 24 mio dividend paid in 2011 cash-flow with current cash balance of 32 mio. Never expected that the sales of paya lebar project will be so good and also with the poor take up rate with serangoon DBSS.

(31-03-2012, 05:00 PM)mrEngineer Wrote: I sold off early due to my miscalculation that lkh will not be able to retain their dividend payment this time. I came to this conclusion by looking at 24 mio dividend paid in 2011 cash-flow with current cash balance of 32 mio. Never expected that the sales of paya lebar project will be so good and also with the poor take up rate with serangoon DBSS.

I think it can maintain at least for another 1-2 years. The minton project is quite a huge money spinner due to its low land price.
The likely profit is around $350 psf at least and that is around 25cts per share.

The low family owns a large stake after the acquisition of General Corporation Berhad and so I will expect them to maintain a good dividend payout.
Parkland Residences will likely to be able to breakeven at least. I am not sure why they bid it. Maybe to keep their staffs busy???

As for Paya Lebar square,
If they manage to sell all the office units at the current price, I think the entire land cost and building cost will be offset by the sale.
So, basically, they will own the 95000 sq ft of retail podium as profit.
At $16 psf rental rate, the annual rental is around $18 million.
Assuming a 5% annual yield, the valuation is worth $364 million.
LKH share of it is 80% or $291million or 37cts.

Looking at it, 4cts per share dividend can maintain for quite some time...

And we have not even considered their malaysia properties development yet..

(29-03-2012, 08:18 PM)camelking Wrote:

(29-03-2012, 06:33 PM)ngcheeki Wrote: Full Year Result is out. Pretty good and declared a dividend 4 cents same as last year.

Net Profit attributable to shareholders('000'): S$85,937
EPS: 11.63 cents
NAV: 53 cents
Price to Book based on closing price of 46.5 cents: 0.88

Forward statement:
Business outlook is expected to be cautious and uncertain in 2012 due to the debt crisis in Euro zone, weak growth in USA and the slow down in the Chinese economy.

The Singapore GDP is expected to grow only by 1% to 3%. The unfavourable economic conditions, the imposition of Additional Buyers’ Stamp Duty in December
2011 on purchase of residential units, the increase in land sales and increase in number of BTO launches have dampened market sentiment. Despite these uncertain economic environments, we expect the property sector in Singapore to remain stable in the medium term. We remain cautious and will continue to be selective in our
project tendering. We will also continue to invest in business that will generate consistent revenue and profitability streams.

http://info.sgx.com/webcoranncatth.nsf/V...0002DE451/$file/20120329_LKHS_Ann_Full-Year-Results_FYE2012_Att.pdf?openelement

Minton is more than 90% sold as at 23 March.
Paya Lebar is more than 75% sold.
These two will be the gold mines for next 2 to 3 years.
Park Residences will be tough.....only 40% sold...
It seems that Low Keng Huat can't launch a project well alone.
BLODDY DBSS!!!

Still the dividend is generous and minton/paya lebar will ensure good profits in short term...

Happy and vested

DBSS is a cheap project lah. They just need to sell 50% to cover back all the cost plus marketing. The remaining is pure profit. The minton is a definite money spinner.

Sales agent at paya lebar square mentioned that the retail units at Paya Lebar square are probably not being sold now.

(02-04-2012, 09:54 AM)propertyinvestor Wrote:

(29-03-2012, 08:18 PM)camelking Wrote:

(29-03-2012, 06:33 PM)ngcheeki Wrote: Full Year Result is out. Pretty good and declared a dividend 4 cents same as last year.

Net Profit attributable to shareholders('000'): S$85,937
EPS: 11.63 cents
NAV: 53 cents
Price to Book based on closing price of 46.5 cents: 0.88

Forward statement:
Business outlook is expected to be cautious and uncertain in 2012 due to the debt crisis in Euro zone, weak growth in USA and the slow down in the Chinese economy.

The Singapore GDP is expected to grow only by 1% to 3%. The unfavourable economic conditions, the imposition of Additional Buyers’ Stamp Duty in December
2011 on purchase of residential units, the increase in land sales and increase in number of BTO launches have dampened market sentiment. Despite these uncertain economic environments, we expect the property sector in Singapore to remain stable in the medium term. We remain cautious and will continue to be selective in our
project tendering. We will also continue to invest in business that will generate consistent revenue and profitability streams.

http://info.sgx.com/webcoranncatth.nsf/V...0002DE451/$file/20120329_LKHS_Ann_Full-Year-Results_FYE2012_Att.pdf?openelement

Minton is more than 90% sold as at 23 March.
Paya Lebar is more than 75% sold.
These two will be the gold mines for next 2 to 3 years.
Park Residences will be tough.....only 40% sold...
It seems that Low Keng Huat can't launch a project well alone.
BLODDY DBSS!!!

Still the dividend is generous and minton/paya lebar will ensure good profits in short term...

Happy and vested

DBSS is a cheap project lah. They just need to sell 50% to cover back all the cost plus marketing. The remaining is pure profit. The minton is a definite money spinner.

Sales agent at paya lebar square mentioned that the retail units at Paya Lebar square are probably not being sold now.

How did you get the 50%?
Got the impression that they bought the land pretty expensive for DBSS development....

LKH has been climbing steadily under the radar. kiwi has done a good summary sometime back.

With the continued wind of delistings, would LKH become history soon?

(31-03-2012, 05:47 PM)yeokiwi Wrote:

(31-03-2012, 05:00 PM)mrEngineer Wrote: I sold off early due to my miscalculation that lkh will not be able to retain their dividend payment this time. I came to this conclusion by looking at 24 mio dividend paid in 2011 cash-flow with current cash balance of 32 mio. Never expected that the sales of paya lebar project will be so good and also with the poor take up rate with serangoon DBSS.

I think it can maintain at least for another 1-2 years. The minton project is quite a huge money spinner due to its low land price.
The likely profit is around $350 psf at least and that is around 25cts per share.

The low family owns a large stake after the acquisition of General Corporation Berhad and so I will expect them to maintain a good dividend payout.
Parkland Residences will likely to be able to breakeven at least. I am not sure why they bid it. Maybe to keep their staffs busy???

As for Paya Lebar square,
If they manage to sell all the office units at the current price, I think the entire land cost and building cost will be offset by the sale.
So, basically, they will own the 95000 sq ft of retail podium as profit.
At $16 psf rental rate, the annual rental is around $18 million.
Assuming a 5% annual yield, the valuation is worth $364 million.
LKH share of it is 80% or $291million or 37cts.

Looking at it, 4cts per share dividend can maintain for quite some time...

And we have not even considered their malaysia properties development yet..

Just to share some news... Park Residences is doing fine, it is around 70% sold.. with property prices still creeping up, it is a matter of time that park residences will be fully sold

That's good news! Future cashflow secured even without new development projects. Good pillow stock.

(28-08-2012, 11:39 PM)money Wrote: Just to share some news... Park Residences is doing fine, it is around 70% sold.. with property prices still creeping up, it is a matter of time that park residences will be fully sold