HupSteel

[pianist]

they have so much steels at their storage, it seems fit to start using them for the redevelopment...

[Bibi]

yes, lavue, ur estimation is very close.
with 14m, construction cost, even if its steel biz half dead n no dividends paid out, it wld still have a healthy balance of nearly 30m n literally zero debt.
the new building will have a gross of 7690sm or 82000sf. assuming 1kpsf, this could add up to 80m in asset value to the company at the expense of 14m cash!
and i dun think lim family is keen to sell them as strata units. if so, rental contribution from its units could start from 2015.
i agree that price might see upward trend next week in response to the anouncement.
congrats bibi, kuku n nitro to this much awaited announcement.

Yes, congrats to those who held on too. I hope mon it's price does goes up. Today someone sold off 100 lots at 21cts. If mon it's price really goes up I wonder who is the lucky pp who got the 100 lots.

[paullow]

http://forum.shareinvestor.com/archive/0...B4A_1.html

came across this link which gives some information about hup seng huat a decade ago when lim kim thor is still the ceo and he still is.

1999, 2 yrs after AFC:

Hup Seng Huat yr to July net profit 2.86 mln sgd vs loss 2.64 mln

SINGAPORE (AFX-ASIA) - Hup Seng Huat Co Ltd year to July results:

Net profit - 2.86 mln sgd vs loss 2.64 mln

Sales - 56.36 mln sgd vs 58.70 mln

Pre-tax profit - 3.43 mln sgd vs loss 2.40 mln

EPS - 0.95 cents vs loss 0.88

Interim div - 0.5 cents vs 0.3

The company said it is cautiously optimistic that there will be some improvement in group
results in the current financial year. However, it also said it is too early to determine that
recent moderate growth will be sustained and improved.

Due to the effects of the regional economic crisis, turnover declined 4.0 pct in the year
recently ended. The company's property investment and warehousing division continued to generate a steady income, although its occupancy rate dropped to about 75 pct from almost 100 pct in the previous year.

The group Hup Eastwood development property project sold eight out of nine units as at
end-July. The ninth unit was sold in August, Hup Seng Huat said.

what we can infer:

1) so this kim chuan land redev is not hup seng huat's first foray into ppty redevelopment and probably won't be its last.

2) eps is truly highly cyclical...it was negative at one time! yet it still paid out dividend. which shows its strong underlying fundamentals.

IMO, i think hup seng huat's engine is just warming up.....

we shall probably see more action soon.


<as usual buy and sell entirely up to your own discretion.>

[kuku]

Ah Pual Huat ah.. Huat ah... finally. actually i was in this counter for quite a while already probably even prior to ur trend start.. But anw nvm Huat ah... Remember dinner hor..

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anw in view of this current redevelopment did a rough calculation it shld be valued at 42 to 45 cents.. But if the sentiment of the market thinks it is going into be a gd commercial property player then we can see 60 cents. Plus their biz is actually is doing okie if prior quarter they had hit bottom.. then their main biz is going to be slightly up trend. given a rough calculation if they earn 60 mill from this redevelopment only then its 10 cents.. add upon their nav then its ard 42 to 45 cents. And it havent factor in their potential redevelopment of another plot, if n if their steel biz pick back up again then its a multi gold bagger already.. easily...

Any opinion to share.. on a technical spect points it shld be a break up for tml.. Plus remember i say earlier a counter jumped from 2 cents to 6 cents.. maybe it will jump to 60 cents hahah, but all pure speculation. it will take time man. BUt i will like to see it break 275 cents n 32cents n 34 cents i think was 09 10 high if not wrg.

[paullow]

hi kuku,
thats ur reward for staying loyal to hup and sticking to ur conviction.
if u are still young, u shd go far with ur kind of perserverance-buying and loving things wgen no one wants it. but u could see the value.
good job!!!

[pianist]

Wow how did U derive 60cent?

[kuku]

Like i Say all pure speculation. But given any value stocks that rise with the market it shld be trading 20% abv their nav so if only jus add this redevelopment it shld be 50 to 54 cents.

What i use additional valuation is adding onto their other plots tat may redeveloped. Plus if they turn their steel biz ard, or if they wanted to be a commercial property developer, the market may like their new direction then it may see a higher revaluation of the company.

But i don wanna drive the hope too high for anyone, so do ur own valuation.

Market is moved by news n sentiment, but for safe investment you will have to look at their fundamentals n their management.

[paullow]

i can see lots of pple trying to get in at 22-23.5. it shd start today at 23.5. 10% above last closing. see how it goes.

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i beg ur pardon. 24c start.
kuku, u cld be quite rite.

[TheMillennium]

Any range till 32cents is consider fair price still right? Since thats the NAV. Plus have not add in the redevelopment.

[paullow]

yes. u can say that. now its still lei long around 1/2price if u consider its true value.