HupSteel

[desmondxyz]

NAV = $1.3495  
Current Price = $0.705
P/B = 0.52x
Cash + Avail for sale fin. assets + AR - ALL Liabilities = $0.6729
Inventories = $0.2184
Investment Properties = $0.2829
PPE = $0.1724
Miscellaneous assets =$0.0029

Value trap

[karlmarx]

The latest results show Hupsteel is no longer bleeding. This is inspite of the continued weak O&G environment. There may be further losses if O&G continues to weaken further, but the provision made by Hupsteel should be sufficient for the present situation.

When the O&G (and other industry which Hupsteel depends on) market recovers, as it will someday, so will demand for steel, and its profitability. Hupsteel remains undervalued given its holding of cash, real estate, and bond securities, as numerous have written about here. It is simply a matter of waiting. The share price has already recovered from 50cts (at the start of the year) to 70cts. It is likely to reach a dollar when demand for steel returns.

[BlueKelah]

OnG oil freeze all year long talk no action. Price could hit $30 again by nexT year from the oversupply. This could mean back to 50c again for hupsteel.

BY the way , have they managed to lease out the new Building or is it still gathering spiderwebs anyone knows? I am not following this stock for now.

sent from my Galaxy Note 7

[bargainhunter]

OnG oil freeze all year long talk no action. Price could hit $30 again by nexT year from the oversupply. This could mean back to 50c again for hupsteel.

BY the way , have they managed to lease out the new Building or is it still gathering spiderwebs anyone knows? I am not following this stock for now.

sent from my Galaxy Note 7

the ceo said at the agm he also very heartache that its still left vacant, every few nights go and check and make sure no spiderwebs.  lol.

[bargainhunter]

http://www.commercialguru.com.sg/listing...huan-drive still asking for 100k a month.

he said at that agm that he never said want to sell but agent can advertise whatever they want. http://www.commercialguru.com.sg/listing...huan-drive

if they get an offer for purchase then they consider.

[brattzz]

"10. A commentary at the date of the announcement of the competitive conditions of the
industry in which the group operates and any known factors or events that may affect the group
in the next reporting period and the next 12 months
Demand for structural steel products, pipes and fittings is expected to remain soft as global economies
have not shown stronger signs of growth and uncertainties arising from the new administration in the
United States.
Oil prices have stabilised at a level that hardly encourage greater oil exploration activities. Recent
developments in the local oil & gas sector may indicate a little more time is needed to resolve financing
issues & over capacity faced by these companies.
The Group will implement cost cutting measures to keep its operation lean while actively seeking new
revenue streams. "

some insights and updates, still low and going along slowly...

[bargainhunter]

NAV $1.3427 Share Price $0.68 P/B = 0.51x

Breakdown:

Cash ($0.4405) + Avail for sale fin. assets, they said with private bank ($0.1678) = $0.6083
- ALL LIABILITIES (-$0.0491) = Net cash ($0.5592)

Receivables = $0.1062
Inventories = $0.2231
Investment Property = $0.2818
PPE = $0.1696
Misc. Assets = $0.0028

[brattzz]

it's family-owned biz, so unlikely to sell-out, just slow steaming their way out....

[bargainhunter]

"10. A commentary at the date of the announcement of the competitive conditions of the
industry in which the group operates and any known factors or events that may affect the group
in the next reporting period and the next 12 months
Demand for structural steel products, pipes and fittings is expected to remain soft as global economies
have not shown stronger signs of growth and uncertainties arising from the new administration in the
United States.
Oil prices have stabilised at a level that hardly encourage greater oil exploration activities. Recent
developments in the local oil & gas sector may indicate a little more time is needed to resolve financing
issues & over capacity faced by these companies.
The Group will implement cost cutting measures to keep its operation lean while actively seeking new
revenue streams. "

some insights and updates, still low and going along slowly...

I think the good thing about all this is that the company has already been conservative and will be cost cutting to stay barely profitable.  That takes care of the downside.

That freehold property of theirs is fully paid up and valued free to shareholders anyway at the current share price so its ok to leave it empty for 1 1/2 years and counting...lol...

[bargainhunter]

http://www.businesstimes.com.sg/real...sold-for-s335m

Freehold industrial building near Tai Seng MRT sold for S$33.5m

Seller Kim Loong & Sons developed 8-storey property on site where three detached factories once stood

Friday, January 6, 2017

by Kalpana Rashiwala

kalpana@sph.com.sg

@KalpanaBT


AN EIGHT-STOREY freehold industrial building along Little Road near Tai Seng MRT Station is being sold for S$33.5 million. The price works out to S$771 per square foot based on the net lettable area of 43,451 sq ft.

The seller, Kim Loong & Sons, developed the property which was completed about two years ago, said Kim Chong Wah, the company's managing director, when contacted by The Business Times. This was a redevelopment project; previously on the site were three low-rise detached factories.

Kim Loong & Sons, which is involved in property investment, is owned by Mr Kim and nine other family members. The family is also involved in the manufacturing of decorative wood-based panels (used in the furniture industry) and the trading of timber.

Mr Kim said the family had bought the three low-rise detached factories along Little Road some four decades ago for its manufacturing business but later found the premises too small and moved its factory to its current location in Sungei Kadut.

It then leased out the three detached factories before redeveloping them into the building that is being transacted. Mr Kim revealed that the family also owns a factory in Ho Chi Minh City which also produces decorative wood-based panels. 3 Little Road is on a 21,111 sq ft site.

The building's gross floor area is 52,778 sq ft, which means the 2.5 plot ratio for the Business 1-zoned site has been fully tapped. The building comprises 16 units, two per floor. About half the building has been leased at monthly rents ranging from S$2 psf for an entire floor to S$2.50 psf for smaller spaces.

The buyer, Chan Rong Fen Building Construction, is expected to occupy some space in the building.

The company is currently located in Woodlands Close. Its shareholders are Liu Yunxia and Sun Renwang, believed to be China citizens turned Singaporeans.

The sale was brokered by CBRE by private treaty. "Investor interest in entire freehold industrial buildings has been gathering momentum lately as prices have eased from the peak in 2014; despite an overall glut of industrial property, the stock of enbloc freehold industrial buildings available for sale is very limited," said Brenda Ong, executive director, industrial and logistics services at CBRE.

Catherine Ng, director of industrial services at Colliers International, said that strata freehold industrial units in the vicinity ranging from 2,314 sq ft to 4,263 sq ft changed hands for around S$630 psf on average last year.

In comparison, the S$771 psf achieved for 3 Little Road appears to be a good price for the seller especially given that this is an en-bloc deal for which one would expect a lower psf price, factoring in a bulk discount, she added.

"That said, the buyer also stands to enjoy capital appreciation in the longer run with an improved economy."

Hupsteel's bigger but less favourably located property nearby is still listed asking for a similar psf http://www.commercialguru.com.sg/listing...huan-drive

a sale at a 15% discount will still increase cash by another > $0.40. If only they would sell it..................