Internet Technology Group

[KopiKat]

[UPDATE] I think I know what happened liao. Its really my fault. I've amended my post and I really sincerely apologise to Kopikat as I intends no mischief or malice.

No worries, but IIRC, then I better go refresh my memory on the Wuthelam Group and Goh Cheng Liang (not sure if he's still aro') again (same Gohs, right?) in case there're expectations in VB that my knowledge is at the same level as 'CityFarmer'...

[CityFarmer]

ITG announced their half year financial result ended 30 Jun 2012 yesterday

http://info.sgx.com/webcorannc.nsf/Annou...endocument

The group's revenue had decreased by 46% to $7.7 Mils for financial period ended 30 Jun 2012, compared to $14.2 Mil a year ago. The decrease is expected due to the disposal of Quantum and JDB Holdings recently

The group's EPS reduces correspondingly from 3.09 cts to 1.25 cts. NAV increases from 20.4 cts to 21.3 cts

Bank borrowing reduces from $6.8 Mils to $2.9 Mils which is a good sign

Cash and Cash Equivalents reduces from $19.4 Mils to $16.6 Mils, and remain healthy IMO

Development Properties in JXSPD progressing with increase value by cost from $29.2 Mils to 35.4 Mils.

Mr Market value it @ 13.5 cts, with NAV of 21.3 cts which include a development properties in JXSPD value at cost. Isn't it under-value?

Any comments?

(vested)

[CityFarmer]

Base on recent data released by Ministry of Land and Resources (MLR) of China, the average land price of 105 cities in China is 3057 RMB/sqm. The residential land average price is 4516 RMB/sqm

The mix-development land (commercial and residential) normally fetch 500 RMB/sqm more than residential land.

Let's use the latest data to derive the market value of ITG's JXSPD land

The JXSPD land size is 137,400 sqm. Base on average price of 5000 RMB/sqm, the pre-developed JXSPD land market value is 687 mils RMB (137.4 S$ mil, with exchange rate of 5:1)

Base on the latest outstanding share of 134 mils share, it is equivalent to $1.03/share.

Any comment?

[vinayagarsathurthi]

no comments . you done really great job

[CityFarmer]

Mr. Goh Ching Lai acquired 2,000 shares @ S$0.118 per share on 5 November 2012 and 320,000 shares @ average price of S$0.13 per share on 7 November 2012.

http://info.sgx.com/webcorannc.nsf/Annou...endocument

[CityFarmer]

Mr. Goh Ching Lai acquired 110,000 shares @ S$0.131 per share on 9 November 2012, 149,000 shares @ S$0.131 per share on 12 November 2012 and 500,000 shares @ S$0.131 per share on 14 November 2012.

http://info.sgx.com/webcorannc.nsf/Annou...endocument

He is actively acquiring ITG shares at around $0.13 recently.

(vested)

[CityFarmer]

Oops, first phase of the development already hitting a major hurdle. An arbitration with main contractor may delay the progress of the development.

http://info.sgx.com/webcoranncatth.nsf/V...A0035F414/$file/Announcement_ArbitrationProceedings_20122012.pdf?openelement

(vested)

[level13]

Oops, first phase of the development already hitting a major hurdle. An arbitration with main contractor may delay the progress of the development.

http://info.sgx.com/webcoranncatth.nsf/V...A0035F414/$file/Announcement_ArbitrationProceedings_20122012.pdf?openelement

(vested)

A typical dodgy construction company. Get the project first and then farm out to smaller companies to earn the difference without doing any work.

[weii]

Dear CityFarmer,
Will you like to do a comparison between ITG and Pan Hong? Pan Hong also has sizable landbank in Jiangxi province held through Sino Harbor (See Page 126 of Annual Report 2011/2012). The profitability of Pan Hong’s Nanchang Honggu Kaixuan Phase 1 and 2 may give a good indication of future profit potential of ITG’s landbank in Jiangxi. Note that commercial sites generally had much higher profit margin than residential.

CityFarmer wrote:

RE: Internet Technology Group
Base on recent data released by Ministry of Land and Resources (MLR) of China, the average land price of 105 cities in China is 3057 RMB/sqm. The residential land average price is 4516 RMB/sqm

The mix-development land (commercial and residential) normally fetch 500 RMB/sqm more than residential land.

Let's use the latest data to derive the market value of ITG's JXSPD land

The JXSPD land size is 137,400 sqm. Base on average price of 5000 RMB/sqm, the pre-developed JXSPD land market value is 687 mils RMB (137.4 S$ mil, with exchange rate of 5:1)

Base on the latest outstanding share of 134 mils share, it is equivalent to $1.03/share.

Any comment?

[CityFarmer]

Dear CityFarmer,
Will you like to do a comparison between ITG and Pan Hong? Pan Hong also has sizable landbank in Jiangxi province held through Sino Harbor (See Page 126 of Annual Report 2011/2012). The profitability of Pan Hong’s Nanchang Honggu Kaixuan Phase 1 and 2 may give a good indication of future profit potential of ITG’s landbank in Jiangxi. Note that commercial sites generally had much higher profit margin than residential.

I do not know about Pan Hong. I will look into it. Thanks for the lead.