Sing Holdings

[bargainhunter]

Travelodge Docklands - 6.12% (based on FY2016 EBITDA)
http://infopub.sgx.com/FileOpen/AGM%2020...eID=450155

Value trap or market imperfection????

The land cost of Parc Botannia project is $515.3psf ( $287.1m / 557150sqf)


http://infopub.sgx.com/FileOpen/Announce...eID=422708

Their 30% JV Wee Hur should be able to bring down the construction cost. Let's assume the construction and miscellaneous cost to be $365psf, then the breakeven cost for the project would be $880psf.

Assuming selling price of $1280psf and totally sold by TOP, profit of $400psf


http://www.straitstimes.com/business/pro...days-begin

Total Gross Profit of $222.86m ($400psf x 557150sqf)

Assuming total 30% off Gross Profit due to tax, interest cost and other miscellaneous cost, Net Profit of $156m (70% x $222.86m)

Sing Holdings' share of profit from the joint venture(70%) is $109m (70% x 156m)

That is about 27 cents per share out of 400m shares.

i think your numbers are very conservative.  your estimate of total costs is $365 + $120 = $485.  There are developers who sold their projects at an average of $500psf above their land cost and still make some profit.  i think the total cost is significantly lower.

[edragon]

i think your numbers are very conservative.  your estimate of total costs is $365 + $120 = $485.  There are developers who sold their projects at an average of $500psf above their land cost and still make some profit.  i think the total cost is significantly lower.

"Let's assume the construction and miscellaneous cost to be $365psf, then the breakeven cost for the project would be $880psf."

[Behappyalways]

From FY2017 result.....

The Group’s segmented results are disclosed in paragraph 15. Acquired in January 2017 at S$117.9 million (equivalent of A$112.9 million) including stamp duty of S$6.1 million, the hotel in Australia was classified as investment property. It generated revenue of S$6.9 million in FY2017 and contributed profit after tax of S$131,000 to the Group. The investment property was valued at S$114.9 million (equivalent of A$110.0 million) at year-end, resulting in net loss on fair value adjustment of S$3.0 million.

(on hindsight, the hotel is not a good investment)

Travelodge Docklands - 6.12% (based on FY2016 EBITDA)
http://infopub.sgx.com/FileOpen/AGM%2020...eID=450155

6.12% EBITDA??? Are they insane?  Tax is 30% and the commercial interest rate is a min. of 3.4%+risk margin (http://www.commercial-loans.net.au).  Wow!  LEE SZE HAO if you are reading this, I've got prime NY real estate for sale!

[bargainhunter]

but the profit after tax of $131k is after the fair value adjustment of $3.047m, without which, the net profit would have been above $3m. I think they are just being conservative and took the chance to take a bath since they have nothing to show in 2017.

ie refer to paragraph 15 of http://infopub.sgx.com/FileOpen/SHL_FY20...eID=490233

[Behappyalways]

Well the Australian property is not providing the company with the expected returns. Taking note that the occupancy is already above 90%, any improvement is meagre.

Parc botannia is 43% sold. I am quite comfortable in believing that it should be fully sold by TOP. Need to sell about 20 units a month which in Jan 2018 they sold 44 units if I remembered correctly. The project should yield above $100m + profits hence should on average produce $50m profit for 2018 and 2019

[bargainhunter]

i think $3m+ net yield was what they expected since they did borrow to finance it and there will be borrowing costs to net off.

i think its possible for parc botannia to yield > 120m for them. that would be earnings of 30c per share. however, the bulk of the profits won't come in so soon. i think the earliest would be from late 2019 through to FY 2021.

[Behappyalways]

The calculation for the property is based on % of completion. The construction started in July 2017

[bargainhunter]

Travelodge Docklands - 6.12% (based on FY2016 EBITDA)
http://infopub.sgx.com/FileOpen/AGM%2020...eID=450155

The calculation for the property is based on % of completion. The construction started in July 2017

but usually the initial phase is low margin as sales is low and construction cost is high?

the big % leap closer to TOP usually provides the kicker.

[bargainhunter]

http://infopub.sgx.com/FileOpen/_FORM1_0...eID=491720

Lee Sze Hao bought 100,000 shares on 1 Mar at $0.42, 100,000 shares on 2 Mar at $0.42 and 200,000 shares today at $0.4175 average.

[bargainhunter]

Lee Sze Hao's family vehicle bought 500 lots on Wed at $0.42. Personally, he bought 14.8 lots at $0.415 on the same day and another 87.9 lots at $0.415 today.

http://infopub.sgx.com/FileOpen/_FORM1_0...eID=492394