Lum Chang Holdings

[pianist]

I think is a good idea, considering that demand exceeds supply. And population booming.

[Curiousparty]

Hi

Have anyone tried to estimate the potential profit from its property development projects in Malaysia?

tks.

[CityFarmer]

Lum Chang increases stake in Kemensah Holdings to 100% for $14.9 million

Lum Chang Holdings says the company has increased its shareholdings in Kemensah Holdings (KHPL) by 49% from 51% to 100% for RM38.3 million ($14.9 million).

KHPL has two wholly-owned subsidiaries, Fabulous Range Sdn. Bhd. and Venus Capital Corporation Sdn. Bhd. Both FRSB and VCC are project companies set up for the purpose of owning and developing reisdential properties at Sungai Long and Kemensah in Malaysia.

KHPL, FRSB and VCC have a total net tangible asset value of RM25.3 million ($9.9 million) as at June 30, 2014.

As part of the acquisition, Lum Chang will take over an outstanding loan of RM 95.1 million ($37.1 million) owned by KHPL to Stanchart Private Equity.

The share and loan consideration which amounts to RM133.4 million ($52 million) will be satisfied by cash.

Lum Chang last closed 1.3% lower at 37.5 cents.
http://www.theedgesingapore.com/the-dail...llion.html

[Nuthing03]

On 20 Dec 12, LC holding acquired the mixed-use property at Kensington High street for a net consideration of S$80.38 million. Supposedly, it will yield a steady rental income for the group in the long run. However, on 9 Feb 15, they disposed the property for S$ 41.0 million. Is there anything that I might have missed out on this? Aren't they running a net loss for this transaction?

[learner88]

Hi Nuthing03,

let me try to see if I can explain the transaction. Just keep in mind assets vs shares, and who is taking on the debt. Hopefully it will be clear.

In Dec 2012:
- Lum Chang set up a special purpose vehicle/100% owned subsidiary Old Court House Propco (OCHP)
- Very very roughly speaking, just imagine that Lum Chang funded OCHP to the tune of S$28.0m (reverse engineered from the current NAV of OCHP. I'm just using the numbers available in the latest announcement. So you can assume all these are nett of interests and rent payments)
- Again, big picture wise, S$28m was about GBP14m.
- With that GBP14m, OCHP took up a loan of GBP26m, making it a total of GBP40m
- With that GBP40m, OCHP bought the freehold mixed-use property at Kensington High Street

NOW:
- Lum Chang is selling 100% of the shares in OCHP
- Recall that Lum Chang funded OCHP to the tune of S$28m
- For 100% of the ownership of OCHP, Lum Chang is now getting back S$41m by selling the shares to the new buyer
- As a result, Lum Chang will book a gain of roughly S$41-28 = S$13m minus expenses or about S$11.4m as mentioned in the announcement

From the perspective of the buyer:
- They are buying the company (OCHP) at S$41m or GBP20m in cash and assuming GBP26m in loans to gain 100% control of the freehold mixed-use property at Kensington High Street
- Total consideration of GBP46m (which also means that Lum Change made a gain of about 15% in about 2 years ignoring all the rental, interests and transaction costs)

HTH

[specuvestor]

^^nice breakdown. Property ROA is indeed 15% but Lum Chang ROE/ ROI is 11.4/28= 40.7% due to leverage

[cyclone]

Lum Chang Awarded Contract for the Construction of JTC's New Light Industrial Development at Woodlands North Coast

Lum Chang Holdings Limited announced that its wholly-owned subsidiary, Lum Chang Building Contractors Pte Ld, has secured a tender for the construction of a new industrial development at Woodlands North Coast. The contract, valued at SGD147.5 million, is awarded by Aedas Pte Ltd, on behalf of JTC Corporation.

Located at the junction of Woodlands Avenue 4 and 9, the industrial development has a site area and gross floor area of approximately 29,900 square metres and 43,900 square metres respectively.

The scope of the contract includes the construction of a new nine-storey light industrial building with one level of basement carpark and two roof floors, and a covered walkway to Republic Polytechnic. It is envisaged that the first to fifth floors will house offices, shops and restaurants.

The contract period for the construction of the Project is 22 months and work is scheduled to commence in mid-June 2018.

[brattzz]

LUM CHANG AWARDED CONTRACT BY MANDAI PARK DEVELOPMENT FOR
THE CONSTRUCTION OF NATURE-THEMED INDOOR ATTRACTIONS AND
A RESORT FOR THE MANDAI REJUVENATION PROJECT


The Board of Directors of Lum Chang Holdings Limited is pleased to announce that its
wholly-owned subsidiary, Lum Chang Building Contractors Pte Ltd. ("LCBC"), has been
awarded a tender for the Mandai Rejuvenation Project. The scope of contract includes
the construction of an arrival node, transport hub, nature-themed indoor attractions and
a resort.
The project is not expected to have a material financial impact on the Group’s results for
the current financial year ending 30 June 2020. The latest award brings the total
outstanding value of construction works yet to be reported as revenue for LCBC to
approximately SGD1.8 billion.

Order book is strong, almost forgot about this company,

[¯|_(ツ)_/¯]

FY2020 Result as at 30 Jun 2020
Rev $322m (vs 240m)
GP  $ 35m (vs 34m)
Net Loss $6m (vs +27m)
Div 1.0cts (vs 1.5)

While the Group’s construction arm succeeded in securing new assignments, bringing our current order book to S$1.87 billion, we anticipate the operating environment will remain challenging, compounded by the added uncertainty of when our project sites will be fully operational and back to running at pre-Covid levels. 
https://links.sgx.com/FileOpen/LC_Group_...eID=629505

Stay home and stay safe, everyone.

[pianist]

Offer at 0.38, last trades price before trading halt was 0.37, seems like info was leaked?