Sing Holdings

[kbl]

Good evening every1.
How is the sales of Waterwoods EC? Thank you.

[Behappyalways]

http://forums.hardwarezone.com.sg/homese...42-18.html

Good evening every1.
How is the sales of Waterwoods EC? Thank you.

[Behappyalways]

If unit cost is $600psf and selling price is $750psf then profit of $150psf.

If unit cost is $600psf and selling price is $800psf then profit of $200psf.

Although price increases by 6.7%(50/750), profit increases by 33.3%(50/150) and not 6.7%(50/750)

By the time the project TOP, the EC should be fully sold. After the launch of Skypark EC, there will be a lull in EC launch and those looking for EC will have to look at the existing pool of EC available.

http://www.channelnewsasia.com/news/busi...73780.html

They should be cash rich now with revenue collections from The Laurels....so I hope they sacrifice a bit of sales by launching it higher.....anyway by the time the project's TOP it should be fully sold.....and the next 6-9 mths with no new EC launch, they could further increase their sales.....

GFA of 500,000psf including balcony...slight more.....

The news reported that the Ecopolitan EC is 60% sold on its 1st day...around $800psf



https://www.squarefoot.com.sg/trends-and...land-sales

The construction cost for Pungol Edge Condo is S$218.8 psf based on the GFA of 153,999 psf after including the additional 10% balcony allocation. With the land price of $342.58 psf, the total development cost should be around S$600 psf.


http://info.sgx.com/webcoranncatth.nsf/V...10033BDEF/$file/1.Announcement_Award_of_main_contract_Punggol_Field_Walk_AP.pdf?openelement

[kbl]

Good noon Behappyalways san.

Thank you for the update. 3Q results should be out tonite.

[Behappyalways]

FYI ^^

http://www.channelnewsasia.com/news/busi...73780.html

[Behappyalways]

Collected $165m cash and another $161m trade receivables which should be collected in 4Q2013. And not to forget cash from Waterwoods too....(if 20% payment for contracted sales of $129.7m then amount would be around $26m)


3Q2013 Result
http://infopub.sgx.com/FileOpen/SHL3Q201...eID=263596

[kyle]

Hi Behappy, Thanks for sharing. So next quarter will have a lot cash. likely a special dividend?

[Behappyalways]

Edited....

To correct they should collect about $60m trade receivables in 4Q2013 instead of $161m. The remaining $100m should be collected within a year.

http://www.ura.gov.sg/lad/HBG/progressPayments.htm

Collected $165m cash and another $161m trade receivables which should be collected in 4Q2013. And not to forget cash from Waterwoods too....(if 20% payment for contracted sales of $129.7m then amount would be around $26m)


3Q2013 Result
http://infopub.sgx.com/FileOpen/SHL3Q201...eID=263596

My two cents worth.....

I think the management tries to keep a net debt to equity ratio of around 1.1...so right now (3Q2013 ratio is 0.9) they are having more than 'required' cash and it will increase in 4Q2013...

So the question is how are they going to utilise it? In normal times they will try to build up landbank but looking at the EC sale(Waterwoods) I think they would be very hesitant now especially in bidding for EC land when you can only launch the project 15 mths after the sites were awarded. Very hard to project what will happen in 15 mths especially with deteriorating sales in the property market now......

so a few scenarios...

1. to landbank when there is a good plot, or to pay for the development charge if Robin site plot ratio gets increased
2. to pay a special dividend
3. to privatised hence not subject to Qualification Certificate and maximise profit in Robin site

To add I did a simple calculation of 2013 EC supply and there are about 1500 units that remains unsold (including Waterwoods and yet to launch Skypark Residence) so if you have 6-9 mths with no supply of EC and upgraders having to looking into exisiting pool. So you need to sell about 200-250 units per mth to deplete the existing pool. So by the end of TOP, Waterwoods should be close to fully sold and upping the price is a right move.....although many would disagree

[kbl]

Edited....

To correct they should collect about $60m trade receivables in 4Q2013 instead of $161m. The remaining $100m should be collected within a year.

http://www.ura.gov.sg/lad/HBG/progressPayments.htm

Good morning Behappyalways san and every1.

how u get $60m Sir?

on completion date is 15%

<vested>

no matter how you see the company, it is not mature yet to unlock the value as The Laurels is not TOP yet and most of its cash is still locked in project account.

from the distribution of shares, it seems not difficult for minority shareholders to "revolt" and force the major shareholders and owners to unlock the value. The Lee family only controls a bit over 1/3 of the company.

it will be interesting to see how it will develop when The Laurels TOPs.

Good morning Freedom san.

The Laurels TOP obtained. Like to hear ur comments. Thank you.

[Behappyalways]

Laurels' total gross sale proceed is $700m so 15% is about $105m. So I get about $60m.

The management should have gotten a share buyback mandate during the last AGM. Now they are flushed with cash but hard to utilise them efficiently.