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30-01-2015, 11:15 AM
A move towards unlocking of value in hiap hoe. Hiap hoe is another neglected stock by the market due to its small free float and lack of analyst coverage.
My own estimate of their RNAV is 1.60-1.80 which compares with a current market price at the 80 cents level. This was done 2-3 years ago and I did not include their developments in Australia. Of note, they invested about 300 million of their capital in Australia, a mix of development and recurring income projects. The bulk of the projects were rental properties with a yield of 7-8%. Given the use of debt, the ROE on income properties is easily 12-15%. Impressive. Their overall market cap is only 300 million, which shows how undervalued they are. The separate listing will definitely make explicit the value of the australia segment.
Looking from another angle, hiap hoe group will get a recurring pretax income of 50 million(conservative estimate) from being an Australian and Singapore landlord. Compared to market cap of 300 million, again very impressive. This will probably show up in their results soon. And they certainly can pay higher dividends while at the same time build up their warchest.
Lets not forget their mixed development project in melbourne with residential units 80% sold and a 7 star hotel as part of the project.
Grossly undervalued + management showing a number of signs of unlocking value; lets see if the market wakes up to the value of this company.
vested
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Hiap Hoe plans to spin off Australian property business on Catalist - Companies News & Top Stories
The Straits Times - 15 hours ago
SINGAPORE - Hiap Hoe has proposed to spin off its Australian property business held under Meteorite (Australia) on the Catalist board.
My own estimate of their RNAV is 1.60-1.80 which compares with a current market price at the 80 cents level. This was done 2-3 years ago and I did not include their developments in Australia. Of note, they invested about 300 million of their capital in Australia, a mix of development and recurring income projects. The bulk of the projects were rental properties with a yield of 7-8%. Given the use of debt, the ROE on income properties is easily 12-15%. Impressive. Their overall market cap is only 300 million, which shows how undervalued they are. The separate listing will definitely make explicit the value of the australia segment.
Looking from another angle, hiap hoe group will get a recurring pretax income of 50 million(conservative estimate) from being an Australian and Singapore landlord. Compared to market cap of 300 million, again very impressive. This will probably show up in their results soon. And they certainly can pay higher dividends while at the same time build up their warchest.
Lets not forget their mixed development project in melbourne with residential units 80% sold and a 7 star hotel as part of the project.
Grossly undervalued + management showing a number of signs of unlocking value; lets see if the market wakes up to the value of this company.
vested
-------
Hiap Hoe plans to spin off Australian property business on Catalist - Companies News & Top Stories
The Straits Times - 15 hours ago
SINGAPORE - Hiap Hoe has proposed to spin off its Australian property business held under Meteorite (Australia) on the Catalist board.