HupSteel

(08-12-2012, 12:54 PM)Drizzt Wrote: thanks for the explanation. i believe Asia Ent also supplies to oil and marine sector and they are fairing ok.

did you type out those on an iphone haha.

haha. yes. android phone. asiaent is good for long for long term investment since its been profitable for past 37yrs. but i would go for hupsteel as my preference as it had a property play which escapes the notice of most pple. unless u dig into the ar, one wpud not discover these gems. and the potential of this property portfolio could be comparable in size to its current market cap.

try this swiftkey flow beta. it will change the way u see virtual keyboard > https://dl.dropbox.com/u/29005/SwiftKey_...0.0.54.apk

Understand that Hupsteel is sitting on many parcels of land, which seem ripe for redevelopment..
because of the nature of operations back in the 1960s/70s, many other companies also have parcels of huge plots of land ripe with huge potential for re-development.

E.g. New Toyo which owns 54% of Tien Wah...
Check out where Tien Wah's office and printing factories are located...Some people said Petaling Jaya is slated to become the "Orchard Road " of KL, Malaysia...Whether u believe it or not, it is up to u to assess...

Testimony to this is given by the move into property sector by F&N -
AFTER 52 years of producing milk products at its Section 13 factory in Petaling Jaya, Fraser & Neave Holding Bhd (F&N) is dabbling into the property segment in an aim to diversify its offerings.


http://www.mmail.com.my/story/fn-eyes-pr...ment-37196

(10-12-2012, 08:58 AM)Curiousparty Wrote: Understand that Hupsteel is sitting on many parcels of land, which seem ripe for redevelopment..
because of the nature of operations back in the 1960s/70s, many other companies also have parcels of huge plots of land ripe with huge potential for re-development.

E.g. New Toyo which owns 54% of Tien Wah...
Check out where Tien Wah's office and printing factories are located...Some people said Petaling Jaya is slated to become the "Orchard Road " of KL, Malaysia...Whether u believe it or not, it is up to u to assess...

Testimony to this is given by the move into property sector by F&N -
AFTER 52 years of producing milk products at its Section 13 factory in Petaling Jaya, Fraser & Neave Holding Bhd (F&N) is dabbling into the property segment in an aim to diversify its offerings.

the most important point is that these freehold lands were valued in 1992. ie 20yrs ago. one can imagine how immensely undervalued hupsteel is.

http://www.mmail.com.my/story/fn-eyes-pr...ment-37196

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its only a matter of time before the announcement to sgx would be made regarding the dev of land n when that happens, price will likely rocket up. in fact, there already seems to be increased buying interest recently. land in s'pore is unlike m'sia. its scare n valuable esp so if it is freehold. imho. u are buying into a share which the property was valued 20yrs ago. do the sums n u shd see the light.

Well, if making money is so easy, then every company will become a property developer in Spore?

I think the property doldrum of the 1980s to early 1990s is still fresh in the mind of some investors...Prices never seemed to take off for more than 10 years!!!!!!!!!

(10-12-2012, 09:44 AM)paullow Wrote:

(10-12-2012, 08:58 AM)Curiousparty Wrote: Understand that Hupsteel is sitting on many parcels of land, which seem ripe for redevelopment..
because of the nature of operations back in the 1960s/70s, many other companies also have parcels of huge plots of land ripe with huge potential for re-development.

E.g. New Toyo which owns 54% of Tien Wah...
Check out where Tien Wah's office and printing factories are located...Some people said Petaling Jaya is slated to become the "Orchard Road " of KL, Malaysia...Whether u believe it or not, it is up to u to assess...

Testimony to this is given by the move into property sector by F&N -
AFTER 52 years of producing milk products at its Section 13 factory in Petaling Jaya, Fraser & Neave Holding Bhd (F&N) is dabbling into the property segment in an aim to diversify its offerings.

the most important point is that these freehold lands were valued in 1992. ie 20yrs ago. one can imagine how immensely undervalued hupsteel is.

http://www.mmail.com.my/story/fn-eyes-pr...ment-37196

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its only a matter of time before the announcement to sgx would be made regarding the dev of land n when that happens, price will likely rocket up. in fact, there already seems to be increased buying interest recently. land in s'pore is unlike m'sia. its scare n valuable esp so if it is freehold. imho. u are buying into a share which the property was valued 20yrs ago. do the sums n u shd see the light.

hupsteel jumped 8% on low volume today. i hope some good news w.r.t. the land redev would be out soon.

(01-09-2012, 09:17 AM)paullow Wrote: a similar bare unit warehouse at 63kim chuan drive 6200sf is going for 6.3m. so i would estimate the freehold land is at least 800psf, making it worth around 26m. the genting lane 8storey building is more prime as it is closer to the city. it has a high plot ratio that it not maximised. the freehold land there is worth at least 20m. these 2plots cld be worth 45m. 2 jalan besar shphse say 3m each. plus shoplets in hoe nam. all in all these freehold assets cld be worth in excess of 50m.
with current market cap of 115m, i wouldn't say its small. it is nearly half of its market cap.

Hi paullow, you estimated a value of $26m for the 6 Kim Chuan Drive property. I did a back-of-the-envelop residual valuation and found that the property's worth could actually be closer to $38m.

To arrive at GDV
41 Kim Chuan Drive sold for $790psf in Mar 2011
31 Kim Chuan Drive sold for $722psf in Nov 2010
33 Kim Chuan Drive sold for $681psf in Nov 2010
Assume $800psf for selling price, which is very conservative.
The site has plot ratio of 2.5. After accounting for the efficiency ratio (80%), it yields a GDV of about $53m.

Minus cost of development of about $15m
Marketing fee at 1%, building costs at $140psf (RLB figures) for heavy industrial buildings (B2 zoning for MP2008), professional fees, contingency, gst, financing costs (although they can well afford to cough out cash, I assumed they use leverage to capitalize on the low interest rates).

This gives a value of $38m, 46% higher than paullow's estimates. Note that I conservatively estimated the selling price at $800psf (the industrial property market is very exuberant now and freehold land is especially valuable since the new sites are only 30-year leasehold) and the building cost at $140psf (could be lower if they partner up with a competent builder/contractor).

Thanks for pointing out the hidden gems on their balance sheet paullow. I will go and analyze the other sites at a later time.

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(19-11-2012, 10:36 AM)paullow Wrote: and look at last saturdays straits times on industrial ppty prices going up 60% since last yr. hupsteel is sitting on goldmine of more than 1 acre of freehold industrial land. its just matter of time before the market realises this gem though downside is the steel biz which seemed to be going thru a rough patch.
it won't be audacious to think that a big fish would attempt to makan hupsteel wholesale for the sake of its freehold land holdings in a land scarce singapore.

Big fishes are already attempting similar moves. Check this out.

today only moved 0.5%, is not much..

(02-01-2013, 10:05 PM)lavue Wrote:

(01-09-2012, 09:17 AM)paullow Wrote: a similar bare unit warehouse at 63kim chuan drive 6200sf is going for 6.3m. so i would estimate the freehold land is at least 800psf, making it worth around 26m. the genting lane 8storey building is more prime as it is closer to the city. it has a high plot ratio that it not maximised. the freehold land there is worth at least 20m. these 2plots cld be worth 45m. 2 jalan besar shphse say 3m each. plus shoplets in hoe nam. all in all these freehold assets cld be worth in excess of 50m.
with current market cap of 115m, i wouldn't say its small. it is nearly half of its market cap.

Hi paullow, you estimated a value of $26m for the 6 Kim Chuan Drive property. I did a back-of-the-envelop residual valuation and found that the property's worth could actually be closer to $38m.

hi there,
yes. thanks for the reply. indeed 26m for 6kim chun 33000sf freehold land is very conservative. so hupsteel is truly very undervalued. should its steel biz recover and the news for the land redev become known, i would expect it to be a two or three bagger. now at 19c, is really cheap if u know what its value is.
vested-a few thousand lots.








To arrive at GDV
41 Kim Chuan Drive sold for $790psf in Mar 2011
31 Kim Chuan Drive sold for $722psf in Nov 2010
33 Kim Chuan Drive sold for $681psf in Nov 2010
Assume $800psf for selling price, which is very conservative.
The site has plot ratio of 2.5. After accounting for the efficiency ratio (80%), it yields a GDV of about $53m.

Minus cost of development of about $15m
Marketing fee at 1%, building costs at $140psf (RLB figures) for heavy industrial buildings (B2 zoning for MP2008), professional fees, contingency, gst, financing costs (although they can well afford to cough out cash, I assumed they use leverage to capitalize on the low interest rates).

This gives a value of $38m, 46% higher than paullow's estimates. Note that I conservatively estimated the selling price at $800psf (the industrial property market is very exuberant now and freehold land is especially valuable since the new sites are only 30-year leasehold) and the building cost at $140psf (could be lower if they partner up with a competent builder/contractor).

Thanks for pointing out the hidden gems on their balance sheet paullow. I will go and analyze the other sites at a later time.

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(19-11-2012, 10:36 AM)paullow Wrote: and look at last saturdays straits times on industrial ppty prices going up 60% since last yr. hupsteel is sitting on goldmine of more than 1 acre of freehold industrial land. its just matter of time before the market realises this gem though downside is the steel biz which seemed to be going thru a rough patch.
it won't be audacious to think that a big fish would attempt to makan hupsteel wholesale for the sake of its freehold land holdings in a land scarce singapore.

Big fishes are already attempting similar moves. Check this out.

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company cash ard 50m. all its physical properties(look at what it owns) including investment ones at least 100m. so at 19c, market is valuing hupsteel at 119m. in essence, u are more than getting the steel biz for free.

steadily going up. 0.194 today. heavy volume of >1m shares traded today. maybe people are taking notice of this heavily undervalued counter. all it needs is a healthy eps or/and news announcement about its land dev, and this counter will shoot up like a rocket.