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14-05-2013, 02:53 PM
(This post was last modified: 14-05-2013, 03:46 PM by smallcaps.)
(14-05-2013, 02:42 PM)dydx Wrote: This must be good news for all Eastern Holdings shareholders! Any idea what will be the likely realised gain - approx. $13.0m ?
Should be around 9 mil.
EHL owns 70% of it.
(05-05-2013, 04:13 PM)smallcaps Wrote: (06-02-2013, 11:09 AM)smallcaps Wrote: (29-11-2012, 05:41 PM)dydx Wrote: 1H (ended 30Sep12) result makes interesting reading.....
http://info.sgx.com/webcoranncatth.nsf/V...600316413/$file/EHL-Ann-1HFY2013Results.pdf?openelement
A $1.94m realised gain from sale of investment properties boosted PBT and NP; the related proceeds of some $11.0m boosted gross cash and have put Eastern Holdings in a clear net cash position in excess of $19.0m - equivalent to approx. $0.064/share - as at 30Sep12.
It is relevant to note that Easterm Holdings continues to pare its large investment properties portfolio - many items of which are carried at ultra-conservative historical costs in the B/S - which should lead to a further increase in net cash. I thought this is a rational move by the management. Does it mean that some 'jumbo' dividends will be paid in the foreseeable future?
Just did some estimations based on asking price for the major investment and development properties:
Completed properties
EPL Building : 28 mil
Tras Street (4x shophouses) : 28 mil
Bryton House (70% interest of 33 mil) : 23.1 mil
Gross Cash if sold : 79.1 mil
Properties under construction
Grove Residences (6x semi detached) : 39.7 mil
Minus construction cost (estimated @ 400 psf of 24.4k built up area) : 10 mil
Gross Cash if sold and completed : 39.7 - 10 = 29.7
Total Gross Cash : 108.8 mil
Minus a buffer (15%) : 92.5 mil
Plus the existing net cash mentioned by dydx : 92.5 + 19 = 111.5 mil
vs Market Cap @ 18 cents : 54 mil
Just an update to guess how much is the net cash currently, including investments in the income funds.
Assuming the cash proceeds from selling of the investment properties were not reinvested (except for the income funds).
Also assuming Tras sale has been completed which is probably soon, if not already)
Net Cash 1HFY13 = 19 mil
Assets held for sale = 4.8 mil
Cash from Tras sale = 25 mil
Total guesstimated net cash plus funds = 48.8 mil = 16.3 cents
Based on 18 cents price, net cash / price = 90%
Probably the down payments from Grove Residence would bring it to mkt cap.
Just need another big sale for net cash to break through the mkt cap convincingly...
With $27 mil from Bryton House sale,
Approx total net cash plus funds = $ 75.5 mil = 25 cents.
Still got EPL building and Grove Residence!!!
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(14-05-2013, 02:53 PM)smallcaps Wrote: (14-05-2013, 02:42 PM)dydx Wrote: This must be good news for all Eastern Holdings shareholders! Any idea what will be the likely realised gain - approx. $13.0m ?
Should be around 9 mil.
EHL owns 70% of it.
(05-05-2013, 04:13 PM)smallcaps Wrote: (06-02-2013, 11:09 AM)smallcaps Wrote: (29-11-2012, 05:41 PM)dydx Wrote: 1H (ended 30Sep12) result makes interesting reading.....
http://info.sgx.com/webcoranncatth.nsf/V...600316413/$file/EHL-Ann-1HFY2013Results.pdf?openelement
A $1.94m realised gain from sale of investment properties boosted PBT and NP; the related proceeds of some $11.0m boosted gross cash and have put Eastern Holdings in a clear net cash position in excess of $19.0m - equivalent to approx. $0.064/share - as at 30Sep12.
It is relevant to note that Easterm Holdings continues to pare its large investment properties portfolio - many items of which are carried at ultra-conservative historical costs in the B/S - which should lead to a further increase in net cash. I thought this is a rational move by the management. Does it mean that some 'jumbo' dividends will be paid in the foreseeable future?
Just did some estimations based on asking price for the major investment and development properties:
Completed properties
EPL Building : 28 mil
Tras Street (4x shophouses) : 28 mil
Bryton House (70% interest of 33 mil) : 23.1 mil
Gross Cash if sold : 79.1 mil
Properties under construction
Grove Residences (6x semi detached) : 39.7 mil
Minus construction cost (estimated @ 400 psf of 24.4k built up area) : 10 mil
Gross Cash if sold and completed : 39.7 - 10 = 29.7
Total Gross Cash : 108.8 mil
Minus a buffer (15%) : 92.5 mil
Plus the existing net cash mentioned by dydx : 92.5 + 19 = 111.5 mil
vs Market Cap @ 18 cents : 54 mil
Just an update to guess how much is the net cash currently, including investments in the income funds.
Assuming the cash proceeds from selling of the investment properties were not reinvested (except for the income funds).
Also assuming Tras sale has been completed which is probably soon, if not already)
Net Cash 1HFY13 = 19 mil
Assets held for sale = 4.8 mil
Cash from Tras sale = 25 mil
Total guesstimated net cash plus funds = 48.8 mil = 16.3 cents
Based on 18 cents price, net cash / price = 90%
Probably the down payments from Grove Residence would bring it to mkt cap.
Just need another big sale for net cash to break through the mkt cap convincingly...
With $27 mil from Bryton House sale,
Approx total net cash plus funds = $ 75.5 mil = 25 cents.
Still got EPL building and Grove Residence!!!
Oops. Made contradictory statements above in my haste (day job loh).
It should be like this:
With $27 * 0.7 = $18.9 mil from Bryton House sale,
Approx total net cash plus funds = $ 67.7 mil = 22.6 cents.
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(04-02-2013, 11:53 PM)smallcaps Wrote: Asking price for Bryton House has recently been raised from 30 to 33 mil
Seems like Bryton House transacted price of $27 mil is significantly off from the asking price of $33 mil (82%)... Industrial not doing so well or ST keen to sell it off? Or maybe asking simply too high...
It is actually quite close to CKS valuation of $28 mil (28 jun 2012) as stated in the offer circular.
In that case, may need to lower the estimated sale price for EPL building to maybe 23 mil (vs 28 mil asking)?
Any buddies interested in buying? Hehe...
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What if EHL keep on investing the money in funds?
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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(15-05-2013, 12:25 AM)opmi Wrote: What if EHL keep on investing the money in funds?
I guess if he's serious about making an offer, it does not matter where he puts the cash into? It would be taken into account by the IFA as part of NTA anyway and probably minority shareholders are immune to it already. Presumably he would keep the cash safe since it is his money, majority of it anyway...
On another note, it's actually quite amusing that invest $10 mil in fund need to announce but sell 2 properties of total $53.5 mil no need to announce.
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15-05-2013, 11:44 AM
(This post was last modified: 15-05-2013, 11:53 AM by opmi.)
(15-05-2013, 09:21 AM)smallcaps Wrote: (15-05-2013, 12:25 AM)opmi Wrote: What if EHL keep on investing the money in funds?
I guess if he's serious about making an offer, it does not matter where he puts the cash into? It would be taken into account by the IFA as part of NTA anyway and probably minority shareholders are immune to it already. Presumably he would keep the cash safe since it is his money, majority of it anyway...
On another note, it's actually quite amusing that invest $10 mil in fund need to announce but sell 2 properties of total $53.5 mil no need to announce.
I see too many "I can be whatever u want me to be" types of IFA...hahaha...
Generally, it doesn't help much if a board has 'professional IDs" aka no real jobs (except being an
Exec Chairman of grand-sounding $2 business consultancy) and depends on directors fees for income.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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(15-05-2013, 11:44 AM)opmi Wrote: (15-05-2013, 09:21 AM)smallcaps Wrote: (15-05-2013, 12:25 AM)opmi Wrote: What if EHL keep on investing the money in funds?
I guess if he's serious about making an offer, it does not matter where he puts the cash into? It would be taken into account by the IFA as part of NTA anyway and probably minority shareholders are immune to it already. Presumably he would keep the cash safe since it is his money, majority of it anyway...
On another note, it's actually quite amusing that invest $10 mil in fund need to announce but sell 2 properties of total $53.5 mil no need to announce.
I see too many "I can be whatever u want me to be" types of IFA...hahaha...
Generally, it doesn't help much if a board has 'professional IDs" aka no real jobs (except being an
Exec Chairman of grand-sounding $2 business consultancy) and depends on directors fees for income.
Yep, get what u mean. Actually was quite surprised that IFA recommended to reject the last offer.
Didn't quite understand why the IDs could not simply block the offer from happening though. I remember one of the ID said at the last AGM that's not within their power to do so...
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(15-05-2013, 12:01 PM)smallcaps Wrote: Yep, get what u mean. Actually was quite surprised that IFA recommended to reject the last offer.
Didn't quite understand why the IDs could not simply block the offer from happening though. I remember one of the ID said at the last AGM that's not within their power to do so...
IDs should work for ALL shareholders, not just Majority OR minority shareholders.
To be independent, it is not IDs job to block any offer. But to provide independent recommendations.
IDs can influence the scope of IFA work by giving guidelines. But it is not right for IDs to override IFA recommendations.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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15-05-2013, 01:16 PM
(This post was last modified: 15-05-2013, 01:29 PM by ngcheeki.)
Grove RESIDENCES
Total Number of Units 6
Number of units sold 2
Percentage of sale 33.33%
TOP: 2H 2014
1 Unit sold this month with median price of $2,612
Based on the following link, this project has sold out!!
http://www.groveresidence.com/index.html
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(15-05-2013, 01:16 PM)ngcheeki Wrote: Grove RESIDENCES
Total Number of Units 6
Number of units sold 2
Percentage of sale 33.33%
TOP: 2H 2014
1 Unit sold this month with median price of $2,612
Based on the following link, this project has sold out!!
http://www.groveresidence.com/index.html
Oh, that's an outdated link. It was for the previous 'Grove Residence'. EHL like to test water before launch and the cluster concept didn't seem to sell...
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