Hock Lian Seng

[BlueKelah]

big increase in price and volume, popular counter now

[GFG]

big increase in price and volume, popular counter now

Even after the big increase, it's still undervalued IMO.
Earnings this year is taken care of by the TOP of Ark.
I don't think dividend will be 4 cents for 2015, but will still be higher than the 1.8 years in the years preceding 2014.

<vested>

[valuebuddies]

We should not forget about the potential negative impacts from Skywoods which sales could be badly affected when rates going up gradually. I would probably let go the positions from my wife portfolio any time soon, it's already near 100% return since vested less than a year ago, one of my very best holding but unfortunately not in my own portfolio.

[brattzz]

pending announcement of big contracts wins?
stay and watch the show!

[Bubbachuck]

big increase in price and volume, popular counter now

Even after the big increase, it's still undervalued IMO.
Earnings this year is taken care of by the TOP of Ark.
I don't think dividend will be 4 cents for 2015, but will still be higher than the 1.8 years in the years preceding 2014.

<vested>

Probably still undervalued on the current price and earnings, but what is the value now post TOP? I think one should start valuing the company post TOP. And also to consider it's order book of over $450 million.

[GFG]

big increase in price and volume, popular counter now

Even after the big increase, it's still undervalued IMO.
Earnings this year is taken care of by the TOP of Ark.
I don't think dividend will be 4 cents for 2015, but will still be higher than the 1.8 years in the years preceding 2014.

<vested>

Probably still undervalued on the current price and earnings, but what is the value now post TOP? I think one should start valuing the company post TOP. And also to consider it's order book of over $450 million.

Some data:
Bumper earnings for FY14 of 14.2 cents
Earnings in earlier years are:

2013: 4.7
2012: 4.9
2011: 6.1
2010: 5.3

Earnings in FY15Q1: 3.65 (mainly due to TOP of Ark@kb)
I estimate earnings in FY15 to be in the 6-8 cents range

In FY16, HLS should start to see some revenue for some of the projects they just started recently, such as the change airport project and the Maxwell station, and maybe from the gali batu project too. Bulk of the earnings from these will likely come in 2017 and beyond though. Also, Skywoods TOP in end 2016, so there'll be some earnings recognition there. I know Skywoods sales not fantastic, but to put things in perspective, 230 out of 460 units have been sold thus far (since I last checked)
In addition, HLS is just one of the partners in this JV.
The new B2 industrial project at Tuas will again, only show up in results after TOP, which is likely to be past 2017.

<vested>

[GFG]

HOCK LIAN SENG REPORTS REVENUE OF S$ 125.3 MILLION
AND PROFIT AFTER TAXATION OF S$ 20.9 MILLION
FOR 1H 2015
? Increase in revenue and profit after taxation are mainly attributable to the
recognition of sales for its industrial building project
? The next industrial project at Tuas is expected to begin construction in 2H 2015
? Going forward, the focus is on tendering for large scale civil engineering projects
and opportunities in property development

Pretty decent results, still in line with expectations for a bumper year.

[valuebuddies]

http://infopub.sgx.com/FileOpen/HLS_resu...eID=376615

As at 30 September 2015, the Group’s order book for on-going projects of civil engineering segment was approximately $408 million for the Maxwell station, Changi Airport project, Stabling at Gali Batu Depot and balance of work for Jalan Gali Batu Depot. The construction of the Group’s new industrial development property at Tuas would be undertaken by own construction arm which is expected to commence in 2nd half 2015. This 5.5-storey multi-user ramp-up industrial buildings is to be completed by 1H 2018.

The construction of The Skywoods, a 50% joint venture residential project, is targeted to complete by 2016. The sales of units is on-going. About 75% of the units were sold by end September 2015.

Q3 has slowdown without the Ark's contribution, overall 9-months EPS already 4.9c, with NAV stood at 41.2c. Skywood sales are quite healthy at 75% sold despite a tough time.

[ still vested ]

[ksir]

http://infopub.sgx.com/FileOpen/HLS_resu...eID=376615

As at 30 September 2015, the Group’s order book for on-going projects of civil engineering segment was approximately $408 million for the Maxwell station, Changi Airport project, Stabling at Gali Batu Depot and balance of work for Jalan Gali Batu Depot. The construction of the Group’s new industrial development property at Tuas would be undertaken by own construction arm which is expected to commence in 2nd half 2015. This 5.5-storey multi-user ramp-up industrial buildings is to be completed by 1H 2018.

The construction of The Skywoods, a 50% joint venture residential project, is targeted to complete by 2016. The sales of units is on-going. About 75% of the units were sold by end September 2015.

Q3 has slowdown without the Ark's contribution, overall 9-months EPS already 4.9c, with NAV stood at 41.2c. Skywood sales are quite healthy at 75% sold despite a tough time.

[ still vested ]

Skywood sales at 75% as per end of Sept 2015. Likely to be more now.
Viewing the order book, the Revenue are quite visible. The concern is margin (likely to be quite depressed).

The wildcard will be the success of Tuas Industrial Development.

<vested but not major holding>

[GFG]

http://infopub.sgx.com/FileOpen/HLS_resu...eID=376615

As at 30 September 2015, the Group’s order book for on-going projects of civil engineering segment was approximately $408 million for the Maxwell station, Changi Airport project, Stabling at Gali Batu Depot and balance of work for Jalan Gali Batu Depot. The construction of the Group’s new industrial development property at Tuas would be undertaken by own construction arm which is expected to commence in 2nd half 2015. This 5.5-storey multi-user ramp-up industrial buildings is to be completed by 1H 2018.

The construction of The Skywoods, a 50% joint venture residential project, is targeted to complete by 2016. The sales of units is on-going. About 75% of the units were sold by end September 2015.

Q3 has slowdown without the Ark's contribution, overall 9-months EPS already 4.9c, with NAV stood at 41.2c. Skywood sales are quite healthy at 75% sold despite a tough time.

[ still vested ]

Skywood sales at 75% as per end of Sept 2015. Likely to be more now.
Viewing the order book, the Revenue are quite visible. The concern is margin (likely to be quite depressed).

The wildcard will be the success of Tuas Industrial Development.

<vested but not major holding>

Results are actually a bit better than I expected.
They only show cumulative 9 months consolidated results but it's better to deduct the Q1 and Q2 revenue/profts to analyse Q3 results year on year (cos due to the 1 off recognition from the ark @ gambas and KB in the earlier part of 2015)
PBT for Q3 2015: 4.92mil
PBT fo Q3 2014: 3.788 mil


Main difference is due to shares of results of joint venture (mostly The Skywoods project), which booked 1.76mil profit in 3Q2015. 
Havent gone into detail the cash flows but it looks stable enough. Again generating stable and healthy operating cashflows. NAV increased to 41.2
Order books are very healthy and extend to 2018.

I really dont usually like to predict/expect this... but I am secretly hoping for a bumper dividend this year too. Dont think it'll be like last year's crazy 4 cents, but am expecting it to be higher than the 1.8 cents in 2012 and 2013, and so far the BS and profit looks like it can support my guess.


<vested - 750 lots>