Hock Lian Seng

[smallcaps]

Joint venture. Won land tender along diary farm on 25 Sep 2012 @ $244.3 mil

http://info.sgx.com/webcoranncatth.nsf/V...50038BFDA/$file/HLS-20120926-Ann-Dairy_Farm-award-of-tender.pdf?openelement

So fast almost launch?

http://www.skywoods.com.sg/

[ikur1]

I'm a bit confused in terms of valuation for this one

dev prop 241m
inv securities 22m
inv prop 11.4 m
cash 111.8m
borrowings (138.7)m
net 248m already vs mkt cap 147m

this excludes the earning power from their civil engineering projects, which is project based. say 20-30m a year net, just 8x P/E yields about 200m in worth

total worth 400m+?
plz correct me

[FatBoi]

I'm a bit confused in terms of valuation for this one

dev prop 241m
inv securities 22m
inv prop 11.4 m
cash 111.8m
borrowings (138.7)m
net 248m already vs mkt cap 147m

this excludes the earning power from their civil engineering projects, which is project based. say 20-30m a year net, just 8x P/E yields about 200m in worth

total worth 400m+?
plz correct me

Any particular reason why you omitted other liability components in your calculation?

[ikur1]

ok let's take off the other 170m+ liability, worth 200+m

still ok

[ngcheeki]

ok let's take off the other 170m+ liability, worth 200+m

still ok

Actually, you don't really need to do the above calculations. You can simply use the total equity (i.e. $127.215 million) in the HLS balance sheet compared with the current capitalization (29 cents * number of shares).

Another easier method, you may simply use the NAV/Book value (i.e. 24.9 cents) compare with current market price (i.e. 29 cents).

The above method way sof valuing does not take into consideration of the company order book (external - $130 million, internal - $96 million) as well as the actual value of the development properties (i.e. Gambas, Kaki Bukit and Dairy Farm Road). For company with a lot of assets in their development properties, you'll need to monitor the sale status of these properties, their launch date as well as TOP.

2 cents comment

[smallcaps]

Wonder wats far east thinking? Thought b1 not doing too well...

http://www.stproperty.sg/articles-proper...s/a/139793

[GFG]

Wonder wats far east thinking? Thought b1 not doing too well...

http://www.stproperty.sg/articles-proper...s/a/139793

"estimated Far East's breakeven cost at around $270-300 psf. Prices at Ark@Gambas, comprising nearly 300 strata ramp-up factory units, are in the range of $380-430 psf currently. Close to 200 units have been sold, he added."

Difference is hock lian seng's site is at a 60 yr lease, while all the new sites since then will only be 30 yr leases
Far East is banking on the industrial market remaining hot, or they are willing to lower their margins to secure sites.

[valuebuddies]

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?

[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)

[valuebuddies]

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!!