Chuan Hup Holdings

[cyclone]

Joint Venture with Finbar Group Limited to Develop Land Site in Pearth

Chuan Hup Holdings Limited announced that the Company’s wholly-owned Australian subsidiary, Ventrade Australia Pty Ltd, will be entering into a joint venture with the Company’s associated Company, Finbar Group Limited, to acquire and develop a prime development land site located in the Perth city precinct.

The Company has a 20.53% shareholding interest in Finbar, which is listed on the Australian Securities Exchange. Finbar is Western Australia’s leading apartment developer and has a successful track record in the development of medium to high density residential properties and commercial property.

Ventrade Australia and Finbar have formed a joint venture company in Western Australia named Finbar Sub 106 Pty Ltd.

106 Pty Ltd will acquire a 1,697 square metre land site located at 240 Adelaide Terrace, East Perth, Western Australia for a purchase price of A$6,500,000, excluding government taxes. The Land will be developed into approximately 115 residential apartments across 28 levels with additional lower level commercial office space.

Ventrade Australia will contribute 50% of the working capital and Finbar will contribute the other 50% of the working capital.

More details in https://links.sgx.com/FileOpen/JVwithFin...eID=583020

[cyclone]

New Associated Company - Keyland Ayala Properties Inc.

Chuan Hup Holdings Limited announced that the Group has been invited to appoint representatives to the board of Keyland Ayala Properties Inc. and accorded two board seats in Keyland Ayala.

Keyland Ayala is a property and development company in the Philippines, in which the Company’s wholly-owned subsidiary, Provest Global Pte. Ltd., has a direct equity stake of 32.52%.

Mr Peh Siong Woon Terence, the Company’s Chief Executive Officer and Executive Director, and Mr Lim Kwee Siah, the Company’s Non-Executive Director, are the Group’s nominated representatives to the board of directors of Keyland Ayala. Mr Peh and Mr Lim have been appointed as the Company’s nominated representatives to Keyland Ayala’s board with effect from 31 October 2019. Provest Global’s representation on the board of Keyland Ayala requires Keyland Ayala to be accounted for as an associated company of Chuan Hup.

More details in https://links.sgx.com/FileOpen/CH.NewAss...eID=583790

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FY2020 Result as at 30 Jun 2020
Rev USD25m (vs 18m)
Loss before tax from continuing operation USD17m (vs 26m)
Loss for the year USD17m (vs +46m)
Div SGD 1 cts (vs 1)

Despite the higher revenue, the Group recorded a net loss of USD 17.12 million for FY2020 on the back of impairment loss on a loan receivable, mark-to-market losses on investments, fair value losses on investment properties and foreign exchange loss.

Company's announcement on 19 March 2020 on Update on Loan to Major Star Holdings Limited. The appointed trustee is currently in the process of taking control of Mr Chan Fook Kheong’s assets. Progress of the debt recovery process has been affected by the Covid-19 situation. The Company will make the appropriate announcements as and when there are any material updates or developments.

The effects of Covid-19 continue to be felt in the geographic locations and the financial markets in which the Group operates. The situation and the impact on the fair value on development properties, investment properties and investment securities continues to be volatile.
https://links.sgx.com/FileOpen/CHHSGXAnn...eID=629792

Stay home and stay safe, everyone.

[¯|_(ツ)_/¯]

Chuan Hup 1H2021 as at 31 Dec 2020
Rev USD8m (vs 7m)
GP  USD9m (vs -129k)
NP  USD9m (vs -319k)

There was an increase in non-current assets of USD 6.11 million. The increase in investments in associates was due mainly to the translation effect from a stronger Australian dollar against US dollar, partly offset by dividends received from the associates.

The increase in investment properties arose from the translation effect from a stronger Singapore dollar against US dollar.

Against the backdrop of uncertainties in the global economy from the resurgence of Covid-19 infections and risks from trade and geopolitical tensions, the directors will continue to exercise prudence when considering new investments.


Stay home and stay healthy, everyone.

[ghchua]

With the sale of PCI, I am wondering why Chuan Hup is still reporting their results in USD, since it is no longer their main functional currency? I guess most of their cash balances might be in USD.

The company is still holding quite a big amount of cash in their balance sheet, with zero bank borrowings. Besides their current ongoing projects with Finbar, I don't see any big capex going forward. Their stake in Pacific Star Development had also been fully written off.

[Reenat]

With the sale of PCI, I am wondering why Chuan Hup is still reporting their results in USD, since it is no longer their main functional currency? I guess most of their cash balances might be in USD.

The company is still holding quite a big amount of cash in their balance sheet, with zero bank borrowings. Besides their current ongoing projects with Finbar, I don't see any big capex going forward. Their stake in Pacific Star Development had also been fully written off.

Chun Hup originally into shipbuilding and chartering services, which they have hived off.  Thus they could have maintained their books in USD, where the ships and chartering services are done mainly in USD.

[BlueKelah]

Get ready for another boom in this stock. Finbar is doing very well and CHH will only stand to benefit. CHH also has some property projects they are doing themselves in Perth. I see a possible 30c this year once people jump in. 

Finbar has quietly crept from 60c to 93c. Check out their recent unit sales, perth property starting to boom.

[piggo]

Finbar just released their results today... pretty decent sales in December which is usually more quiet because of Christmas etc.

[Townboy]

Chuan Hup had made many wise investments and divestments in the past but I always wonder if the management ever regret selling off PCI. In my opinion, PCI was doing pretty well and sustainable business when it was sold off. Now what is Chuan Hup going to do with so much cash in hand or run out of idea? Expand property business in Australia? Investment in Pacific Star Development was a bad deal.

[ghchua]

Chuan Hup had made many wise investments and divestments in the past but I always wonder if the management ever regret selling off PCI. In my opinion, PCI was doing pretty well and sustainable business when it was sold off. Now what is Chuan Hup going to do with so much cash in hand or run out of idea? Expand property business in Australia? Investment in Pacific Star Development was a bad deal.

Indeed. Their recent moves since disposal of PCI had been small ones. They have acquired several office units in The Central in Singapore to increase their exposure to investment properties in Singapore and they have teamed up with Finbar again to acquire and develop a prime development land in Perth.

The thesis for their investment in Pacific Star Development was a vaild one. They had exposure to properties in Australia, Singapore and Philippines. They wanted to increase their exposure to South East Asia footprint via Malaysia and Thailand through Pacific Star Development. Unfortunately, things happened and they have written off their investment in the company.

Going forward, I guess with a decent amount of cash in hand, they should be looking at opportunities. However, I think they will be more careful since their failed investment in Pacific Star Development and I guess one have to be patient to wait for their next big move. Otherwise, shareholders should encourage them to dish out more dividends as it is inefficient for the company to hold too much cash for a long period of time.