Hwa Hong Corporation Limited (formerly: Hwa Hong Manufacturing Company Ltd)

[cyclone]

Start a thread on Hwa Hong (H19), to date the counter is on 52 weeks low and closed at 30 cents sgd.

Company website : http://www.hwahongcorp.com

A little introduction to Hwa Hong :
Hwa Hong Corporation Limited, originally formed as a partnership, was incorporated on 29 December 1952 as a private limited company under the name of Hwa Hong Manufacturing Company Pte. Limited. On 21 November 1969, it converted to a public company known as Hwa Hong Manufacturing Company Limited and was admitted to the Official List of the Singapore Exchange Limited on 26 July 1979. The name “Hwa Hong Corporation Limited” was adopted with effect from 15 January 1985.

The principal activity of Hwa Hong Corporation Limited is that of an investment holding company. The subsidiary companies are primarily engaged in property rental, investment and development, investment holding and trading of consumer products.

<not vested>

[Stocker]

After selling their insurance business and Trademark building , the only gem left for this company seems to be the former Singapore warehouse.

[orangetea]

Let me contribute

(Vested by the way.)

It faces same past depressions...
(i) lower rental revenue,
(ii) lower profit from trading of investment securities
(iii) lower gain from disposal of RiverGate apartments and
(iv) higher allowance for impairment losses on investment securities.

Its near book value of 29.94cent
http://markets.ft.com/research/Markets/T...?s=H19:SES


FOR
What is going for it is the Paya Lebar property has completed reno and rented out
UK property pick up
Low debt: Total debt/total equity @ 8.16%, Total debt/total capital @ 7.54%

Against
Unsold Rivergate apartments...
so far sold 100 units out of 545 units, (From Oct 2010 to Oct 2013)
co developed by HwaHong & Capitaland
http://www.capitalandresidential.com/por...ergate.asp
http://phx.corporate-ir.net/phoenix.zhtm...&highlight=
http://sgproptalk.blogspot.sg/2012/02/pr...rgate.html

Orchard Medical Centre - JV with 70% Hong leong, called Hong
http://www.luckyplaza.com.sg/directory.p...&pageid=54
Total 56 doctors’ suites
Sold 9, Left 38
http://www.stproperty.sg/articles-proper...le/a/59225


Other writes on HwaHong
http://www.sharesinv.com/articles/2013/0...93-220413/

Commentary from company on recent results

"In Singapore, the resale market for residential properties continues to be weak. As a result, up to Q3, only one unit of the RiverGate apartment was sold. Our associate company however was able to sell 9 medical office units of the Orchard Medical Centre. Our share of SGD792,000 profit was recognised in Q3 arising from the sale of 2 medical office units. Our share of profits from the sale of the additional 7 medical office units of SGD3 million is expected to be recognized in Q4. The associate has a balance of 38 unsold units.

The residential market in UK is buoyant in terms of price and rental and the Group is looking to capitalize on the strong demand The Group is currently in negotiations for investments in both the commercial and residential sectors.
With signs of a gradual recovery in the UK economy, the Group has plans to reposition the service offices to long-lease offices that will result in lower operating costs and higher income. The repositioning may affect income in the first half of 2014 as existing short-term leases are likely to be terminated.
The Group’s property and investment portfolio will continue to provide a recurrent income for the coming year.

The Group had on 7 October 2013 announced the redemption of loan notes (“Notes”) issued by Eastcomm Pte. Ltd. to ordinary shares in the share capital of AsiaPhos Limited (“AsiaPhos”). The redemption of the Notes and accrued interest resulted in 24,452,384 AsiaPhos shares being issued to the Group at a cost of $0.1875 per AsiaPhos share. Based on the invitation price of $0.25 per AsiaPhos share, the Group had an unrealised fair value gain of approximately $1.5 million on the date of the AsiaPhos Listing. The Group has to observe a 6 months moratorium which will end on 6 April 2014."

[opmi]

Qn: the Singspore Warehouse is the one at arumugan road? Thanks.

[orangetea]

Qn: the Singspore Warehouse is the one at arumugan road? Thanks.

Singapore Warehouse, 110 Paya Lebar Road - 5,480 sq metres, freehold

http://www.commercialguru.com.sg/project...ouse-20173

[gautam]

I was once keen on this counter, with paid huge dividends with in the past 5yrs. Yes, and 110 paya lebar is completing its extensive ungrading. The rental shd go up once due for re-lease to tenant.

It owns a variety of UK ppties and i think its continuing to buy more.

The nav is abt 30c, but sum of parts is likely more. Yield is 1cpa or 3.3% at current price.

[Vseeker]

Qn: the Singspore Warehouse is the one at arumugan road? Thanks.

Yes... think it's now called "Oneten Paya Lebar" (coz addr is 110 Paya Lebar)

[cfa]

HH had distributed most of their extra O gains to shareholders thru special dividends , so unlikely they can do the same. That's why many had sold their shares and share price has been heading down.

[Vseeker]

Let me contribute

(Vested by the way.)

.
.

Against
Unsold Rivergate apartments...
so far sold 100 units out of 545 units, (From Oct 2010 to Oct 2013)
co developed by HwaHong & Capitaland
http://www.capitalandresidential.com/por...ergate.asp
http://phx.corporate-ir.net/phoenix.zhtm...&highlight=
http://sgproptalk.blogspot.sg/2012/02/pr...rgate.html

i believe your info. on Rivergate are incorrect.
far as I know: they already sold 542 units on DPS terms, way back in 2007, and despite AFC, they successfully collected back the monies for these sold units when project TOPed in mid 2009.

[valueinvestor]

Let me contribute

(Vested by the way.)

.
.

Against
Unsold Rivergate apartments...
so far sold 100 units out of 545 units, (From Oct 2010 to Oct 2013)
co developed by HwaHong & Capitaland
http://www.capitalandresidential.com/por...ergate.asp
http://phx.corporate-ir.net/phoenix.zhtm...&highlight=
http://sgproptalk.blogspot.sg/2012/02/pr...rgate.html

i believe your info. on Rivergate are incorrect.
far as I know: they already sold 542 units on DPS terms, way back in 2007, and despite AFC, they successfully collected back the monies for these sold units when project TOPed in mid 2009.

They sold to a property fund owns by Lippo group. headed by Dr. Lee KC.