Tuan Sing Holdings

This is another Cheap and inexpensive property counter to own with a Large exposure to commercial and Hospitality Asset.

The redevelopment of Robinson Towers and International Factors building into a Grade A office building is likely to cost 125million but it adds around 345Million in development value to the NAV of Tuan Sing. (This is based on a calculation of the Net leasable area of the new Robinson Towers at 220000sqf valued at 3500psf)

Seletar Park Residence is 93% sold to date while Sennet is about 65% sold.

RNAV is likely to hit a record of 90c/share when you factor in the profits from the development projects.

Hi hi. any opinions on this company? looks interesting, just that it probably didnt rally coz it didnt give much dividend.
NAV of 62.2 cents look cheap. A lot of revenue from industrial services, but those really have weak margins.

weird but there is always a huge selling pressure on the counter (very high sell volume). Any reason?

Thanks
<not vested>

This is an under researched counter. Management has mentioned in the AGM that net margins from SPR, and Sennet is 'double digit" and are both selling like hotcakes. At the opportune time, they may also divest away Gul Tech at a good price of course.

From what I remember it had a quite a good run previously few years when it has some analyst coverage. now it is probably just tracking the index just like guthrie. can put on watchlist to buy in during downturn due to its high NAV.

But as with all property, high NAV can become low NAV when property market crashes

Evaluating value based on regular dividend payout and cash flow is just as important...

(09-05-2013, 01:59 PM)propertyinvestor Wrote: This is an under researched counter. Management has mentioned in the AGM that net margins from SPR, and Sennet is 'double digit" and are both selling like hotcakes. At the opportune time, they may also divest away Gul Tech at a good price of course.

(09-05-2013, 01:59 PM)propertyinvestor Wrote: This is an under researched counter. Management has mentioned in the AGM that net margins from SPR, and Sennet is 'double digit" and are both selling like hotcakes. At the opportune time, they may also divest away Gul Tech at a good price of course.

I looked into Tuan Sing after looking at SPR. Loved it immensely and so tempted to buy a unit except it being out of reach haha. Bought a little into them since.

Sennett has a considerable number of high quantum units. ~90 units rough estimate $1.5-3m range. 11 penthouse smallest 2BR would fetch ~$3m to $5m+ for the largest 6BR (2 units).

During the AGM, was told only 1 PH was sold. Most of the units sold so far ~1.1m mark which are the 2BR.

I am concerned by the ability to sell those larger units especially in light of CM7. The CFO brushed this off. No answer was also given for the number of returned units.

Granted, Sennett is a good development. Was at the showflat launch weekend. Loved the layout. Very generous rooms and practical efficient design. People who were there had similar feedback. However, given the location and quantum, can they sell those >$3m units? I would have gone for landed with that budget. If they can't then there's a charge imposed ~4yrs from now.

Tuan Sing has another CPR to launch this year. They are unlikely to appoint any marketing agent for this as mentioned in the AGM. I wonder the ability to sell given that the quantum is going to be sky high.

With no more land on hand, TS needs to either bid aggressively for GLS or look towards enbloc. Unless they move out of the current HQ and development that plot.

Robinsons Tower is looking good to generate steady rental income when completed. Would they sell to a REIT or keep for rental?

TS seems happy just to bide time and hold on to Gultech and other non property interests until a great offer comes along while they happily draw salary and directorship fees.

I don't think it is that easy to get Tuan Sing to unlock and release value to minority shareholders. Tuan Sing is prudent and shrew but minority interests have scant attention. The board is rewarded more than shareholders with the paltry dividend.

Haha those multi-million units have to wait for property crazed china ppl to buy loh but given china's imminent property bubble pop, wait for the good show, tuan sing 10 cent again

(09-05-2013, 03:02 PM)bb88 Wrote:

(09-05-2013, 01:59 PM)propertyinvestor Wrote: This is an under researched counter. Management has mentioned in the AGM that net margins from SPR, and Sennet is 'double digit" and are both selling like hotcakes. At the opportune time, they may also divest away Gul Tech at a good price of course.

I looked into Tuan Sing after looking at SPR. Loved it immensely and so tempted to buy a unit except it being out of reach haha. Bought a little into them since.

Sennett has a considerable number of high quantum units. ~90 units rough estimate $1.5-3m range. 11 penthouse smallest 2BR would fetch ~$3m to $5m+ for the largest 6BR (2 units).

During the AGM, was told only 1 PH was sold. Most of the units sold so far ~1.1m mark which are the 2BR.

I am concerned by the ability to sell those larger units especially in light of CM7. The CFO brushed this off. No answer was also given for the number of returned units.

Granted, Sennett is a good development. Was at the showflat launch weekend. Loved the layout. Very generous rooms and practical efficient design. People who were there had similar feedback. However, given the location and quantum, can they sell those >$3m units? I would have gone for landed with that budget. If they can't then there's a charge imposed ~4yrs from now.

Tuan Sing has another CPR to launch this year. They are unlikely to appoint any marketing agent for this as mentioned in the AGM. I wonder the ability to sell given that the quantum is going to be sky high.

With no more land on hand, TS needs to either bid aggressively for GLS or look towards enbloc. Unless they move out of the current HQ and development that plot.

Robinsons Tower is looking good to generate steady rental income when completed. Would they sell to a REIT or keep for rental?

TS seems happy just to bide time and hold on to Gultech and other non property interests until a great offer comes along while they happily draw salary and directorship fees.

I don't think it is that easy to get Tuan Sing to unlock and release value to minority shareholders. Tuan Sing is prudent and shrew but minority interests have scant attention. The board is rewarded more than shareholders with the paltry dividend.

You all should Talk to the indonesian bosses and try to convince them to unlock more value in TS. The CFO is so conservative. But if the indo bosses gives him the leeway to try out more risky ventures, im sure he will do it.

Assuming all 3 development projects are fully sold, SPR, CPR and Sennet will likely contribute 115million in NET profit for Tuan Sing in the next 4 years.

CFO also confirmed they use an ultra conservative valuation for the redevelopment of Robinson towers. So if you mark to market it at today's market rate, its worth 2.5 times more.

I note how forummers here seem to like Sing holdings while overlooking Tuan Sing which has better fundamentals than Sing Holdings.

(09-05-2013, 04:31 PM)propertyinvestor Wrote: You all should Talk to the indonesian bosses and try to convince them to unlock more value in TS. The CFO is so conservative. But if the indo bosses gives him the leeway to try out more risky ventures, im sure he will do it.

Assuming all 3 development projects are fully sold, SPR, CPR and Sennet will likely contribute 115million in NET profit for Tuan Sing in the next 4 years.

CFO also confirmed they use an ultra conservative valuation for the redevelopment of Robinson towers. So if you mark to market it at today's market rate, its worth 2.5 times more.

I don't have the impression that the CFO is conservative, agree that he certainly have the capacity to do more. But the one driving the aggression should be the CEO and not the CFO right?

I believe he mentioned that the valuation was forward, done based on Robinson Tower when completed. One of the building was recently valued according the prevailing market pricing and the gain is evident in the NAV. The good EPS was largely due to that.

(10-05-2013, 01:16 PM)bb88 Wrote:

(09-05-2013, 04:31 PM)propertyinvestor Wrote: You all should Talk to the indonesian bosses and try to convince them to unlock more value in TS. The CFO is so conservative. But if the indo bosses gives him the leeway to try out more risky ventures, im sure he will do it.

Assuming all 3 development projects are fully sold, SPR, CPR and Sennet will likely contribute 115million in NET profit for Tuan Sing in the next 4 years.

CFO also confirmed they use an ultra conservative valuation for the redevelopment of Robinson towers. So if you mark to market it at today's market rate, its worth 2.5 times more.

I don't have the impression that the CFO is conservative, agree that he certainly have the capacity to do more. But the one driving the aggression should be the CEO and not the CFO right?

I believe he mentioned that the valuation was forward, done based on Robinson Tower when completed. One of the building was recently valued according the prevailing market pricing and the gain is evident in the NAV. The good EPS was largely due to that.

Yes there was an increase in the valuation of Robinson towers as it was done with the assumption of the new building being constructed. But the price psf they used was 2600psf for both the commercial and office space. Oxley's freehold development in the vicinity is transacting at 3000-3800psf and the retail units in the vicinity is going at a minimum of 4000psf.

The CEO is based in Jakarta.