Popular Holdings

[zerobeta]

Popular is the dominant retailer for stationaries.
The book sales that's making money is the course books for schools.
growth in malaysia seem to be growing steadily.
I've seen a few of their stores in malaysia, also have consistent queues.
The properties gonna sit there for a while.
They have the latest JV with BBC or something for learning centres in china, dunno how that will pan out
I rem the son used to be part of management/board then he was gone

vested

The book sales that's making money is the course books for schools.
Can you elaborate more what course books here mean? like the official textbooks used in schools or just optional accompanying materials used outside school? does Singapore use the same textbooks throughout their schools?

[light]

Yes, I agree the bugbear is property development especially in the current climate. Sales of their developments from URA: -

One Robin - Fully Sold
18 Shelford - 16/19 Sold
8 Raja - 2/26 Sold

Based on the above, I wouldn't say their track record is poor to be honest except for 8 Raja. During the property boom, I recall Popular's profit spiked but too bad, property market is looking down now and looks like they may be stuck with the 8 Raja units for awhile, probably until the next boom which nobody knows when.

I believe Popular had already recognised one off impairment losses on two 18 Shelford units in 1QFY14 results. I guess there may be additional impairment losses for 8 Raja and new development Permai Residences down the road.

Luckily their balance sheet is very strong and I think they should be able to withstand the property downturn easily. But yeah, property which was once a sweetener has turned sour for Popular which I think could be the reason for its low valuations.

Sgpunter

Two mistakes in your comments :

1) They have sold all the units in 18 Shelford.
2) 8 Raja they have already sold 5 units. https://www.ura.gov.sg/realEstateIIWeb/t...!536305342.
3) They have also written off for Permai Residence.

Vested

[ikur1]

Popular is the dominant retailer for stationaries.
The book sales that's making money is the course books for schools.
growth in malaysia seem to be growing steadily.
I've seen a few of their stores in malaysia, also have consistent queues.
The properties gonna sit there for a while.
They have the latest JV with BBC or something for learning centres in china, dunno how that will pan out
I rem the son used to be part of management/board then he was gone

vested

The book sales that's making money is the course books for schools.
Can you elaborate more what course books here mean? like the official textbooks used in schools or just optional accompanying materials used outside school? does Singapore use the same textbooks throughout their schools?

They produce lots of accompanying study materials. not textbooks. In Singapore lots of students go for private tuition, the private tutors would buy these books to teach as well. A friend of mine, a teacher tells me he goes to Popular. nowhere else to find these study books.

I think from retailing books and stationery, if they can get 20m+ and steady growing in malaysia. + worth of properties, this is a fine biz to keep.

good luck!

vested

[ngcheeki]

It should be QC (Qualifying Certificate) instead of QE though .

Popular swings back to profitability in 2Q; warns of QE charges for unsold units at Ei8ht Raja

SINGAPORE (Dec 10): Popular Holdings have swung back to the black in the 2Q15 ended Oct. The textbook retailer and property owner reported earnings of $1.27 million from a loss of $63,000 a year ago.

In 2Q15, group turnover dropped 8% to $125.5 million from $136.5 million largely due to lower sales achieved in the Property and Retail & Distribution divisions.

Only one unit of Ei8ht Raja was sold for $2.5 million in the quarter compared to two units of 18 Shelford for $8.8 million in the previous corresponding quarter, the company said.

For the Retail and Distribution division, the 4.6% drop in turnover to $107.4 million was due to extension of the Malaysian government’s book voucher (BB1M) redemption period in 2Q14 and the Singapore Gadget & Write Fair event which was held in 2Q14 but was not held in 2Q15.

The Publishing and e-Learning Division also reported a 3.3% increase in sales to $15.7 million from $15.2 million to $15.7 million due to the adoption of its secondary school textbook series in Hong Kong and increased revenue from our assessment and supplementary titles.

Popular remains cautious of unexpected economic upheavals in the global economy which may adversely affect consumer sentiment. The group is also closely monitoring the continuing regulation of the property sector in Singapore.

Popular says if the group is unable to sell all the unsold units in its development properties within the time frame required as stipulated by the Qualifying Certificate conditions, it would incur additional expenses for the extension of time to sell the unsold units.

As at Oct 31, 21 out of a total 26 units of Ei8ht Raja remained unsold. Under the Qualifying Certificate issued in respect of Ei8ht Raja, all units must be sold within two years from 28 May 2013, the date of the issue of the TOP. Any extension of the time to sell the unsold units would be subject to significant extension charges.

Meanwhile, Permai Residences should be completed by end of 2015.

Popular closed 4.1% lower at 23.5 cents.

http://www.theedgemarkets.com/sg/article...ei8ht-raja

[CityFarmer]

It should be QC (Qualifying Certificate) instead of QE though .

Haha... You are right. QE has been a buzzword for quite a while, and may be next the QC in Singapore ...

[specuvestor]

Maybe it was an Auto-correct function

With a name Ei8ht Raja they better have a good Indian salesperson selling to the NRI. Popular was really a sign of the peak in so many aspects

[cyclone]

Voluntary conditional cash offer at S$0.32 per share.
39.1% premium over last traded share price of 23 cents.

http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com

[lonewolf]

Voluntary Conditional Cash Offer $0.32 launched.

Voluntary Conditional Cash Offer Announcement

2.3 Condition to the Offer
(a) The Offer is conditional upon the Offeror having received, by the close of the Offer, valid acceptances in respect of such number of Shares which, when taken together with Shares owned, controlled or agreed to be acquired by the Offeror before or during the Offer, will result in the Offeror holding not less than 90% of the Shares as at the close of the Offer (the “Acceptance Threshold”).
(b) Accordingly, the Offer will not become or be capable of being declared unconditional as to acceptances until the close of the Offer unless, at any time prior to the close of the Offer, the Offeror has received valid acceptances (which have not been withdrawn) in respect of such number of Shares which, when taken together with the Shares owned, controlled or agreed to be acquired by the Offeror before or during the Offer, will result in the Offeror holding at least 90% of the Shares.
( c) Save as provided in this Section 2.3, the Offer is unconditional in all other respects.

Offeror has irrevocable undertaking of 488,239,075 (or 61.25%) from World Holdings and Mr Chou Cheng Ngok to accept the offer.

A few questions:
1) Since offeror does not owe any Popular shares as at announcement date, soes that mean it will need 90% of outstanding shares to exercise compulsory acquisitions of shares?

2) Unlike the usual cash offer, Mr Chou Cheng Ngok is not considered a concerted party in the offer, right? Why structure it this way? Is it easier to reach the 90% compulsory acquisition level? Or because of his 'indirect' stake in Popular? Why not just offer through World Holdings? Think need to crunch numbers a bit further.

(Vested - and will not be accepting if its does not become unconditional)

[pianist]

huat la, fully vested nil shares sold to-date
santa claus havent returned to the arctic circle?

[kelvesy]

Wow, new year came early for Popular shareholders. Congratulations!