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28-08-2012, 10:29 AM
(This post was last modified: 28-08-2012, 10:51 AM by Musicwhiz.)
I realised nobody has talked or noticed about this undervalued counter.
What is Heeton? Its the Toh Family's listed arm that deals in residential development. Older people here will remember the boss as the "King of Sembawang" as their parent company, Hong Heng owns lots of land parcels in the Sembawang area in the past.
Why is it undervalued? Because it owns the following investment properties which
- Sun Plaza (50%)
- Tampines Mart
- The WoodGrove
The above 3 will probably be divested one day when the price is good. All of them are yielding above 10% at the moment as their historical cost is very low
Of interest is their freehold Land parcel at Kee Seng street just beside Keppel Land's KTGE building at Hoe Chiang Road. The land is currently not mark to market value as its booked under PPE. If sold at today's market price, could yield a profit of around 70-80million.
They also have a portfolio of overseas landbank mainly in Thailand and a Grand Mercure Hotel in Pattaya.
Their JV development project, The Boutiq, Resi 26 and the Palacio is what will drive earnings for the next few quarters.
NAV is $1.06 Current price trades at a discount of 60% to its NAV.
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Q2 6/2012 Turnover up 81.5% but profit dropped 10.4%; what is the reason?
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(28-08-2012, 12:49 PM)edragon Wrote: Q2 6/2012 Turnover up 81.5% but profit dropped 10.4%; what is the reason?
Most of their development project is done through JVs. So expenses could be slightly higher. Revenue is higher thanks to improved rental yields in their investment property.
The rental yield from Tampines mart is quite fantastic actually. rental price for a small handphone shop is around 3k/mth.
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(28-08-2012, 10:29 AM)propertyinvestor Wrote: I realised nobody has talked or noticed about this undervalued counter.
What is Heeton? Its the Toh Family's listed arm that deals in residential development. Older people here will remember the boss as the "King of Sembawang" as their parent company, Hong Heng owns lots of land parcels in the Sembawang area in the past.
Why is it undervalued? Because it owns the following investment properties which
- Sun Plaza (50%)
- Tampines Mart
- The WoodGrove
The above 3 will probably be divested one day when the price is good. All of them are yielding above 10% at the moment as their historical cost is very low
Of interest is their freehold Land parcel at Kee Seng street just beside Keppel Land's KTGE building at Hoe Chiang Road. The land is currently not mark to market value as its booked under PPE. If sold at today's market price, could yield a profit of around 70-80million.
They also have a portfolio of overseas landbank mainly in Thailand and a Grand Mercure Hotel in Pattaya.
Their JV development project, The Boutiq, Resi 26 and the Palacio is what will drive earnings for the next few quarters.
NAV is $1.06 Current price trades at a discount of 60% to its NAV.
I know the Mercure Hotel in Pattaya, we have meeting every week there but i was far to imagine that the owner was a listed company in Singapore. thanks for the information about this company. Why discount on NAV? What's the main reason?
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(28-08-2012, 05:26 PM)pacyfiq Wrote: (28-08-2012, 10:29 AM)propertyinvestor Wrote: I realised nobody has talked or noticed about this undervalued counter.
What is Heeton? Its the Toh Family's listed arm that deals in residential development. Older people here will remember the boss as the "King of Sembawang" as their parent company, Hong Heng owns lots of land parcels in the Sembawang area in the past.
Why is it undervalued? Because it owns the following investment properties which
- Sun Plaza (50%)
- Tampines Mart
- The WoodGrove
The above 3 will probably be divested one day when the price is good. All of them are yielding above 10% at the moment as their historical cost is very low
Of interest is their freehold Land parcel at Kee Seng street just beside Keppel Land's KTGE building at Hoe Chiang Road. The land is currently not mark to market value as its booked under PPE. If sold at today's market price, could yield a profit of around 70-80million.
They also have a portfolio of overseas landbank mainly in Thailand and a Grand Mercure Hotel in Pattaya.
Their JV development project, The Boutiq, Resi 26 and the Palacio is what will drive earnings for the next few quarters.
NAV is $1.06 Current price trades at a discount of 60% to its NAV.
I know the Mercure Hotel in Pattaya, we have meeting every week there but i was far to imagine that the owner was a listed company in Singapore. thanks for the information about this company. Why discount on NAV? What's the main reason?
Sun Plaza has a very good location as it is just within a min from the MRT...
However, I believe that Koh Brother and Heeton does not manage Sun Plaza well.....it is quite run down and hence, when I look at Sun Plaza, I would not touch these 2 companies as they did not enhance their properties value......
Even the Sembawang shopping centre which is some distance from the MRT has better tenants than Sun Plaza....not to mention North Point and Causeway point which is 1 and 2 MRT station away......
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28-08-2012, 11:22 PM
(This post was last modified: 28-08-2012, 11:34 PM by ngcheeki.)
One of the deep value property counters, the main problem is the company's Net gearing is a bit too high and may require a lot of money for their newly jointly acquired land banks with KSH, Tee International, Lian Beng etc., such as Sam Leong Mansions, Macpherson Green, 121C Whitley Road, King Albert Park properties, Camay Court etc. Furthermore, one of their key projects iLiv@Grange so far no unit is sold.
However, this stock will be a gem if the company managed to divest some of the investment properties such as Sun Plaza
The following is some of the financial information I had based on 1H FY 2012 result.
1H FY2012
NAV $1.08
Price to Book 0.39 (Based on market price of 41.5 cents)
Net Debt per share: $1.69
Net Gearing: -155.62%
EPS: 3.7 cents
The low dividend yield of 2 to 3% make the wait for the company to realize the value/potential extremely painful.
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(29-08-2012, 02:17 AM)Behappyalways Wrote: Their 50% owned Sun Plaza is tying up the company. The other 50% is owned by Koh Brothers if I am not wrong. A year or two ago, they tried to put the plaza out for sale but then withdrew. One catalyst for upgrading woulld be the disposal of this plaza but I guess would not be easy.
no vested interest
You are right. Sun Plaza location is good but I believe further enhancement is needed if Heeton and Koh Brother wants to sell it or for better recurring rental.
I do not think anyone would want to buy it under current state. They had to enhance to have more space and manage the mall properly yo have better tenant mix.......
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29-08-2012, 09:32 AM
(This post was last modified: 29-08-2012, 09:34 AM by propertyinvestor.)
(29-08-2012, 08:56 AM)cliffordng888 Wrote: (29-08-2012, 02:17 AM)Behappyalways Wrote: Their 50% owned Sun Plaza is tying up the company. The other 50% is owned by Koh Brothers if I am not wrong. A year or two ago, they tried to put the plaza out for sale but then withdrew. One catalyst for upgrading woulld be the disposal of this plaza but I guess would not be easy.
no vested interest
You are right. Sun Plaza location is good but I believe further enhancement is needed if Heeton and Koh Brother wants to sell it or for better recurring rental.
I do not think anyone would want to buy it under current state. They had to enhance to have more space and manage the mall properly yo have better tenant mix.......
They dont have to sell it off in a hurry. The existing condition of the building itself is already attractive. Its built with a very large floor plate design to cater for more flexible use.
Companies like SPH are always hungry to purchase Suburban malls and they dont mind paying in excess of 2500psf for it. The benchmark to use is the 5% yield. Nobody pays more than 5% yield for a suburban mall. So that translate into a valuation of 300million for Sun Plaza.
(29-08-2012, 02:17 AM)Behappyalways Wrote: Their 50% owned Sun Plaza is tying up the company. The other 50% is owned by Koh Brothers if I am not wrong. A year or two ago, they tried to put the plaza out for sale but then withdrew. One catalyst for upgrading woulld be the disposal of this plaza but I guess would not be easy.
no vested interest
Too many offers for Sun Plaza that scared them into selling. Plus the fact that SPH paid more than 600million for Clementi mall and Far East bidding 1billion for the Punggol project that lead them to question themselves if selling Sun Plaza at that time was a correct move.
Turns out that they are right.
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Well, I think you never been to Sun Plaza...
Do drop by to take a look.......................... 
(29-08-2012, 09:32 AM)propertyinvestor Wrote: (29-08-2012, 08:56 AM)cliffordng888 Wrote: (29-08-2012, 02:17 AM)Behappyalways Wrote: Their 50% owned Sun Plaza is tying up the company. The other 50% is owned by Koh Brothers if I am not wrong. A year or two ago, they tried to put the plaza out for sale but then withdrew. One catalyst for upgrading woulld be the disposal of this plaza but I guess would not be easy.
no vested interest
You are right. Sun Plaza location is good but I believe further enhancement is needed if Heeton and Koh Brother wants to sell it or for better recurring rental.
I do not think anyone would want to buy it under current state. They had to enhance to have more space and manage the mall properly yo have better tenant mix.......
They dont have to sell it off in a hurry. The existing condition of the building itself is already attractive. Its built with a very large floor plate design to cater for more flexible use.
Companies like SPH are always hungry to purchase Suburban malls and they dont mind paying in excess of 2500psf for it. The benchmark to use is the 5% yield. Nobody pays more than 5% yield for a suburban mall. So that translate into a valuation of 300million for Sun Plaza.
(29-08-2012, 02:17 AM)Behappyalways Wrote: Their 50% owned Sun Plaza is tying up the company. The other 50% is owned by Koh Brothers if I am not wrong. A year or two ago, they tried to put the plaza out for sale but then withdrew. One catalyst for upgrading woulld be the disposal of this plaza but I guess would not be easy.
no vested interest
Too many offers for Sun Plaza that scared them into selling. Plus the fact that SPH paid more than 600million for Clementi mall and Far East bidding 1billion for the Punggol project that lead them to question themselves if selling Sun Plaza at that time was a correct move.
Turns out that they are right.
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(29-08-2012, 11:16 AM)cliffordng888 Wrote: Well, I think you never been to Sun Plaza...
Do drop by to take a look..........................
(29-08-2012, 09:32 AM)propertyinvestor Wrote: (29-08-2012, 08:56 AM)cliffordng888 Wrote: (29-08-2012, 02:17 AM)Behappyalways Wrote: Their 50% owned Sun Plaza is tying up the company. The other 50% is owned by Koh Brothers if I am not wrong. A year or two ago, they tried to put the plaza out for sale but then withdrew. One catalyst for upgrading woulld be the disposal of this plaza but I guess would not be easy.
no vested interest
You are right. Sun Plaza location is good but I believe further enhancement is needed if Heeton and Koh Brother wants to sell it or for better recurring rental.
I do not think anyone would want to buy it under current state. They had to enhance to have more space and manage the mall properly yo have better tenant mix.......
They dont have to sell it off in a hurry. The existing condition of the building itself is already attractive. Its built with a very large floor plate design to cater for more flexible use.
Companies like SPH are always hungry to purchase Suburban malls and they dont mind paying in excess of 2500psf for it. The benchmark to use is the 5% yield. Nobody pays more than 5% yield for a suburban mall. So that translate into a valuation of 300million for Sun Plaza.
(29-08-2012, 02:17 AM)Behappyalways Wrote: Their 50% owned Sun Plaza is tying up the company. The other 50% is owned by Koh Brothers if I am not wrong. A year or two ago, they tried to put the plaza out for sale but then withdrew. One catalyst for upgrading woulld be the disposal of this plaza but I guess would not be easy.
no vested interest
Too many offers for Sun Plaza that scared them into selling. Plus the fact that SPH paid more than 600million for Clementi mall and Far East bidding 1billion for the Punggol project that lead them to question themselves if selling Sun Plaza at that time was a correct move.
Turns out that they are right.
Ive been there and Ive seen the floor plans of the building. And I know what Im talking about when I say that place has good potential.
maybe you should go and find out how much rental NTUC is paying to rent that place.
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