Hock Lian Seng

[GFG]

Nah 600 is not anywhere near the top 20.

The prob with skywoods is there are A LOT of new condos in the vicinity
Coupled with the cooling measures...

[GFG]

Bring up this thread....

Recently announced wining of project over S$100Mil, but any buddies know how the sales of the Skywood, Ark@Gambas and Ark@Kaki Bukit?

Sales for skywood not good, according to caveats lodged, only ard 50 units out of 420 units launched are sold
Their partner, king wan, recorded some losses from their property division in their latest FY14Q3 results, I am assuming that comes from the skywoods project

The ark at gambas and kb though, are doing very well
Gambas is almost fully sold, and it's launched earlier
Both of these project are recorded via the COC method according to accounting rules, so I am expecting a big profit boost in FY 15Q1 when they TOP
Already, they are recording costs incurred such as commissions.

Honestly though, there are few earnings drivers for FY14.

Their marina coastal expressway and gali batu projects are completed, with minimal if any, revenue left. The changi project will only contribute after FY14.

My worry is that hls is still not GREEN AND GRACIOUS BUILDER certified. After FY14, those not certified will not get the license to tender BCA contracts.
I have emailed management about this but have yet to receive a reply

(Vested 600lots)

Wow 600 lots mean a lot, wonder if you are in the top 20 list

I don't know much about HLS but I do like companies that tender government projects, as it will be benefited be it a boom/doom economy. My concern is mainly on its development project particularly the Skywood as it was a new launch luxury project and located so so far away from town. But on the positive side, I think the 6 over percent of dividend should be sustainable.

As for the GREEN AND GRACIOUS BUILDER, obviously this is something new to me, I am not sure but since they have been working with LTA and BCA for so long, I think their chances in getting registered should be quite high. I do not think that the government would want to work with contractors that are not up to certain standards.

Anyway, thanks for your valuable information!!

Here's more information on the Green and gracious builder scheme.
It's not released by HLS, but you can find the information on BCA website.

Q: Is GGBS compulsory for me?
A: Currently, companies which wish to apply for or retain their BCA Contractors
Registry System (CRS) registration in work heads CW01 and CW02 and
financial grades from A1 to B2 are required to obtain GGBS by the following
dates:
A1 & A2: By 1 Jan 2015
B1& B2: By 1 Jan 2016

This is HLS's certification and when it expires:
CW01 General Building A1 1/7/2014
CW02 Civil Engineering A1 1/7/2014
CR08 Piling Works L5 1/7/2014
SY01A Essential Construction Materials L6 1/7/2014
SY01C Other Basic Construction Materials L6 1/7/2014


I view their A1 grades (ability to tender for any quantum worth of project) under workheads CW01 and CW02 as one of their competitive edges. Which is why I am paying attention to this lack of certification.

Still no reply from management yet regarding my query.

[GFG]

Bring up this thread....

Recently announced wining of project over S$100Mil, but any buddies know how the sales of the Skywood, Ark@Gambas and Ark@Kaki Bukit?

Sales for skywood not good, according to caveats lodged, only ard 50 units out of 420 units launched are sold
Their partner, king wan, recorded some losses from their property division in their latest FY14Q3 results, I am assuming that comes from the skywoods project

The ark at gambas and kb though, are doing very well
Gambas is almost fully sold, and it's launched earlier
Both of these project are recorded via the COC method according to accounting rules, so I am expecting a big profit boost in FY 15Q1 when they TOP
Already, they are recording costs incurred such as commissions.

Honestly though, there are few earnings drivers for FY14.

Their marina coastal expressway and gali batu projects are completed, with minimal if any, revenue left. The changi project will only contribute after FY14.

My worry is that hls is still not GREEN AND GRACIOUS BUILDER certified. After FY14, those not certified will not get the license to tender BCA contracts.
I have emailed management about this but have yet to receive a reply

(Vested 600lots)

Wow 600 lots mean a lot, wonder if you are in the top 20 list

I don't know much about HLS but I do like companies that tender government projects, as it will be benefited be it a boom/doom economy. My concern is mainly on its development project particularly the Skywood as it was a new launch luxury project and located so so far away from town. But on the positive side, I think the 6 over percent of dividend should be sustainable.

As for the GREEN AND GRACIOUS BUILDER, obviously this is something new to me, I am not sure but since they have been working with LTA and BCA for so long, I think their chances in getting registered should be quite high. I do not think that the government would want to work with contractors that are not up to certain standards.

Anyway, thanks for your valuable information!!

Here's more information on the Green and gracious builder scheme.
It's not released by HLS, but you can find the information on BCA website.

Q: Is GGBS compulsory for me?
A: Currently, companies which wish to apply for or retain their BCA Contractors
Registry System (CRS) registration in work heads CW01 and CW02 and
financial grades from A1 to B2 are required to obtain GGBS by the following
dates:
A1 & A2: By 1 Jan 2015
B1& B2: By 1 Jan 2016

This is HLS's certification and when it expires:
CW01 General Building A1 1/7/2014
CW02 Civil Engineering A1 1/7/2014
CR08 Piling Works L5 1/7/2014
SY01A Essential Construction Materials L6 1/7/2014
SY01C Other Basic Construction Materials L6 1/7/2014


I view their A1 grades (ability to tender for any quantum worth of project) under workheads CW01 and CW02 as one of their competitive edges. Which is why I am paying attention to this lack of certification.

Still no reply from management yet regarding my query.

[Shrivathsa]

Looks like green and gracious kicks in from 2017

http://www.towkayzone.com.sg/threads/296...y-end-2016

[GFG]

Looks like green and gracious kicks in from 2017

http://www.towkayzone.com.sg/threads/296...y-end-2016

Nope.
Read carefully:
"Construction firms must be certified "green and gracious" by the Government if they want to bid for public housing, school and hospital projects from 2017."
That's only for public housing etc.

For HLS's A1 grade under workheads for Civil engineering, it kicks in starting 2015. (according to BCA website)
That means for building highways, the airport contract etc I assume will fall under this category.

[GFG]

Hi valuebuddies

I noticed a difference in the ARs. In the AR for 2012:
"Non-refundable commissions paid to sales or marketing agents on the sales of real estate units are
expensed when incurred."

In the most recent 2013 AR:
"Non-refundable commissions paid to sales or marketing agents on the sales of real estate units are capitalised
when incurred."

So the commissions are now capitalized instead of being expensed.
anyone has any comments on any significant effects this may have?

[GFG]

Hock Lian Seng got a new contract to build Maxwell station for $222 million

[yeh]

yes, climbing up nicely..

yeh yeh!

[GFG]

Hock Lian Seng got a new contract to build Maxwell station for $222 million

The Board of Directors of Hock Lian Seng Holdings Limited (the “Company” ) is
pleased to announce that Hock Lian Seng Infrastructure Pte Ltd, a wholly-owned
subsidiary of the Company has been awarded Contract T223 from Land Transport
Authority for the Construction of Maxwell Station for Thomson Line (the “Project”).
The contract sum is approximately $221.8 million.
The Project will commence in April 2014 and is expected to complete by December
2020.
The Project is not expected to have a material impact on the consolidated net
tangible assets per share and consolidated earnings per share of the Group for the
financial year ending 31 December 2014.
None of the Directors or Controlling Shareholders of the Company has any interest,
directly or indirectly, in the Project.


$221.8million!
That's a HUGE boost to their order books, and will provide earnings visibility all the way to 2020.

[yeh]

i hope so too!!