Sim Lian

[CY09]

At $361 psf and adding in construction cost+consultancy+stamp duty, marketing etc, the cost per psf ppr will be about $680 psf. Assuming Sim Lian aims for a decent profit, it will have to sell at $850 psf

IMO, despite this EC flat being of good location, the EC unit should be priced at no more than $1M since applicants are of the 12k income ceiling unless you come out with gimmicks like offering fully furnished kitchens. It will be interesting to see how the EC unit distribution is like and the pricing of units in 15 months time.

I feel Sim Lian is too aggressive in this bid. Given that 2 CCK grove EC sites will be launched ahead of it, i expect the sale of Sim lian's unit will be slow unless it sells at $800psf*.

*PS: the author was previously way off in his prediction on the sale progress of Waterwoods unit. Just hope he is wrong again

[greengiraffe]

http://www.businesstimes.com.sg/companie...t-earnings

Property development boosts Sim Lian's Q1 net earnings
Group profit more than doubles to S$77m; company sees continued challenge in private residential market

By
Kalpana Rashiwalakalpana@sph.com.sg@KalpanaBT
11 Nov5:50 AM
Singapore

STRONG revenue booking from property development projects helped Sim Lian Group to more than double net earnings to S$71.66 million for the first quarter ended Sept 30, 2014 from S$27.68 million in the year-ago period.

Group revenue jumped to S$379.02 million from S$151.

[stilicon]

result for FY 2015 : http://infopub.sgx.com/FileOpen/FY2015_F...eID=367500

The surprise is the dividend 7.28c instead of the 4,6 of the last 2 years. That's about 8% div today.

NAV at 30/6/2011 was S$ 0.563
at 30/6/2015 it is now about S$ 1.16.

that is a wealth creation of S$0.597 over 4 years.

Meanwhile, the divs were
FY2011 : 4.8c (paid in nov)
FY2012 : 7.5c
FY2013 : 4.6c
FY2014 : 4.6c
FY2015 : 7.28c
total : 28.78c

The overall value creation is very serious.

ROE is regularly around 19 - 20%.
P/B is at 0.76 today.
Capitalisation is around 850 millions S$.

But it is very thinly traded.

I wonder why it is never mentioned. It seems that Construction and Prop dev are so over today in Singapore 

[sgpunter]

The counter is thinly traded as it is majority owned by the Kuik family.

Personally, I think it is a good stock as the dividend yield is one of the highest amongst property/construction counters coupled with a strong balance sheet. The company has been profitable and dishing out dividends for the last 15 years regardless of economic downturns.

The one bugbear I can recall is that there were some complaints back then about high salaries paid to the executive directors but this is not that big of an issue to me so long as the company can continue generating good profits and dividends.

I'm expecting some volatility in earnings as with most property counters but based on its track record, this is one stock I'm not worried about holding on to.

[ngcheeki]

The first executive condominium (EC) launch for the year has posted strong numbers over its first weekend of sales.

Wandervale EC at Choa Chu Kang had sold about 50 per cent of its total of 534 units by yesterday evening, at an average price of $755 per sq ft (psf). It had previously received 783 e-applications.

"The subscription rate and first weekend conversion is the best result for an EC launch for over a year (in terms of percentage sales)," noted Mr Ku Swee Yong, Century 21 chief executive officer. However, he also noted that the project had been about 40 per cent oversubscribed, which meant about 500 applicants must have dropped out.

In terms of the absolute number of units sold, Wandervale's sales performance was comparable to that of Sol Acres EC, which sold 247 units at an average of $780 psf in its launch weekend in August last year.

Wandervale also fared better at its launch than two other ECs released to the market late last year: Signature at Yishun EC and The Criterion EC, which are on adjacent sites in Yishun Street 51. Both were launched in the fourth quarter.

As at the end of January, Signature at Yishun has sold 116 units at a median price of $768 psf and The Criterion has sold 76 units at a median price of $807 psf.

Still, the Choa Chu Kang EC market is set to get more competitive this year.

In addition to Sol Acres, which is in Choa Chu Kang Grove, and Wandervale in Choa Chu Kang Avenue 3, two more ECs are expected to be launched in the area this year.

http://www.straitstimes.com/business/pro...dervale-ec

[LionFlyer]

Another one bites the dust

In a release to the Singapore Exchange on Monday night, Coronation 3G said that it is making a voluntary conditional cash offer of S$1.08 per share for all the outstanding shares in SLG that it doesn't own or has agreed to acquire.

The offer price, which is final, represents a premium of 14.9 per cent over the last traded price of S$0.94 per share on Aug 4.

http://www.businesstimes.com.sg/companie...lian-group

Could do better on the price though. They omitted that the NAV should be around $1.14.

Not vested.

[CigarButts]

Congrats to all who vested at lows and got profits though I agree they could d better by giving an offer at nav