Sing Holdings

[specuvestor]

Actually the comparison with Berkshire has been discussed many times in other threads.

The main issue is TRUST. Is the management trustworthy with cash pile and what is their historical track record. That's why a shell company with cash trades ~80% of cash cause management could pay out say 10% of NAV as directors' fees and salary or equivalent annually and suck it dry (which is why SGX require company with no business to delist within a period) ; not to mention even if liquidate there are lawyers' fees etc

That's why it is better to receive cash dividend (in addition to improved shareholder's cashflow) than share dividend or bonus (I'm sure many will disagree when the stock is hot); or to issue bonds after paying up your previous one rather than rollover. It's the signaling of the cash flow and management's opinion of OPMI, rather than a cash hoard that's sitting there year in year out that OPMI can't touch or worse becomes suspicious.

The Structure in A-B-S is important to OPMI.

[bargainhunter]

Actually the comparison with Berkshire has been discussed many times in other threads.

The main issue is TRUST. Is the management trustworthy with cash pile and what is their historical track record. That's why a shell company with cash trades ~80% of cash cause management could pay out say 10% of NAV as directors' fees and salary or equivalent annually and suck it dry (which is why SGX require company with no business to delist within a period) ; not to mention even if liquidate there are lawyers' fees etc

That's why it is better to receive cash dividend (in addition to improved shareholder's cashflow) than share dividend or bonus (I'm sure many will disagree when the stock is hot); or to issue bonds after paying up your previous one rather than rollover. It's the signaling of the cash flow and management's opinion of OPMI, rather than a cash hoard that's sitting there year in year out that OPMI can't touch or worse becomes suspicious.

The Structure in A-B-S is important to OPMI.

Applying this to Sing Holdings, the company's 10 year track record has been to pay out on average 25% of earnings as dividends.  The remaining 75% has been retained in the business to grow its property development business, which is capital intensive.  As a result, they have never had to issue any bonds and in the latest annual report, the interest rate on their loans were between 1 and 1.6%.  The cash is not exactly hoarded as they have been using it in their daily business to both reduce interest expenses and to maintain a strong balance sheet should opportunities arise.  Neither have they been reckless in their land bids due to their strong balance sheet.  Over the last 6 years, they have only 2 projects and both projects are earning/likely to earn above average margins compared to other property developers.

[specuvestor]

I'm just a bystander with no vestedness but I think this is what you are alluding to:
EPS Div
2021 0.02 0.01
2020 0.04 0.01
2019 0.11 0.0185
2018 0.03 0.012
2017 0.01 0.01
2016 0.07 0.01375
2015 0.05 0.0125
2014 0 0.01
2013 0.07 0.01
2012 0.1 0.015
Total 0.5 0.12175
Average 24.35%

Stock trading about 16X PE and 2.5% Yield that sounds reasonable. End 2021 it has $170m short term loan and $297m long term loan so indeed capital intensive which will be tough in a rising interest rate environment. 2 Lees draw about $1.5m in 2021 vs net profit of $9.8m for about 2.8% ROE

[bargainhunter]

I'm just a bystander with no vestedness but I think this is what you are alluding to:
EPS Div
2021 0.02 0.01
2020 0.04 0.01
2019 0.11 0.0185
2018 0.03 0.012
2017 0.01 0.01
2016 0.07 0.01375
2015 0.05 0.0125
2014 0 0.01
2013 0.07 0.01
2012 0.1 0.015
Total 0.5 0.12175
Average 24.35%

Stock trading about 16X PE and 2.5% Yield that sounds reasonable. End 2021 it has $170m short term loan and $297m long term loan so indeed capital intensive which will be tough in a rising interest rate environment. 2 Lees draw about $1.5m in 2021 vs net profit of $9.8m for about 2.8% ROE

If we average out the earnings and dividends over 10 years then we are looking at 8x P/E and 3% dividend yield.  

This track record is likely to be extended upon the successful launch of North Gaia on high margins on 23/4.  Cash received from Parc Botannia TOP which is not paid out as dividend and sales secured from North Gaia will reduce the loans significantly.

[ghchua]

Hi money,

If you look at Sing Holdings, the matter of the fact is that without the revenue contribution from their Australia hotel, their revenue for FY23 will be only around $1 million, from sales of units at BizTech Centre.

So, the revenue from their Australia hotel made up about 80% of their total revenue for FY23, with zero contribution from property development segment, as revenue for EC projects will only be recognized upon TOP. Is the revenue contribution from the hotel "miserable" as what you have stated for Sing Holdings?

I think I will stop here because this is a KSH topic, and not for other stocks. I leave it to other readers to decide.

[bargainhunter]

https://links.sgx.com/FileOpen/_Form%203...eID=819566

A fund has crossed 5%.  The total volume in the market in the past year is nowhere close to the more than 20m shares it now owns.  Looks like its a patient long term value fund which has been buying and holding over several years and the average price it bought at is most certainly higher than the last declared $0.33.