Sing Investments & Finance

recent 1 right for every 2 shares exercise to raise around S$ 60 million.

Why would the company choose such a time for fund raising exercise?

1. the prospect is not looking good since FED has indicated that they will continue to maintain a low interest rate til 2015. So can't expect net interest income margin to grow with more loans. Quite the opposite, the company should tighten its loan criteria.

2. Is the company expecting large loan provision coming?

3. Is the company gearing up for acquisition?


anyone has any idea?

Sing Inv is trading higher PE than Hong Leong Finance, but neither the earning nor the balance sheet is better than Hong Leong Finance.

FED maintain low interest rates does not mean banks or finance institutions will loan out at low interest rates. Quite the opposite actually.

(20-09-2012, 03:55 PM)propertyinvestor Wrote: FED maintain low interest rates does not mean banks or finance institutions will loan out at low interest rates. Quite the opposite actually.

show me any proof that shows the interest rate rises generally.

what is its npl?
personally, i think it is a gd move considering its present total assets is roughly to the tune of 1.5-1.8b only..which definitely has much more room to expand for larger economic of scale ...and considering the the high growth story in this region for construction finance, project financing etc.
is this company holding a finance company license? and can they do acu overseas business?

Being a finance company, Sing Invest faces certain restrictions, one of which is that it can only transact in Singapore dollar. Banks can lend in foreign currencies to SMEs venturing outside Singapore. Banks are also more aggressive in share financing now and finance companies do not seem to be fighting back.

Hi, need some advice regarding subscription of rights issue. At S$1.20, is it worthwhile to subscribe?
According to circular issued, purpose is for expansion of working capital & business expansion but why now when economic conditions are cloudy?

(22-10-2012, 07:34 PM)tanlui Wrote: Hi, need some advice regarding subscription of rights issue. At S$1.20, is it worthwhile to subscribe?
According to circular issued, purpose is for expansion of working capital & business expansion but why now when economic conditions are cloudy?

Today's MV is $1.42. You would have earned by exercising your rights.

Very very low key counter that I think is undervalued with potential upside surprise when full year results are out next quarter.

1Q EPS: 2.393
2Q EPS: 1.710
3Q EPS: 2.390
NAV: $1.960
Net Cash: $1.588
Last Traded: $1.320

Why do I think there is an upside surprise? 2014 is Sing Investment's 50th Anniversary and there is a distinct possibility of a special dividend issued. Even if there isn't, this company has been paying decent dividends for the last 10 years (as far back as I can find).

I anticipate a full year dividend of around $0.06 plus possibility of special dividend (maybe 5 cents to correspond to 50th Anniversary) or it could rounded up to $0.10. Furthermore, with interest rates only possibly going up which will benefit Sing Investments, I honestly think the downside is quite limited for this counter which is backed by high NAV.

Any thoughts? I know the 3 finance companies (Hong Leong Finance and Singapura Finance the other two) barely get any coverage and are thinly traded. Probably many people will say they are value traps as well but since all the finance companies have consistently paid decent dividends for as long as I know, I don't mind waiting.

Then after the special div, need to wait for SG100?

Sing Finance is run by same family from Sing Holdings. Yes. that tight fisted developers that VB here love or loath.


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Margins should increase when interest rates trend up.

Another interesting thing to note - Morph Investments holds 1,895,000 (1.2%) shares in Sing Investments.