Low Keng Huat (Singapore)

[greengiraffe]

Hi Green Giraffe,

Thanks for your notes on my posting on CES thread. I am buying some LKH now.

Btw, where did u get figure that LKH has around 134000 sf of retail space to be launched at PL Square? Someone else posted it as 95,000 sq ft. Is your fig GFA or NLA. I think NLA is the one they can sell. Also since they leased out already maybe they wont sell so cannot monetize this asset?

http://info.sgx.com/webcoranncatth.nsf/V...F00327EF0/$file/LowKengHuat_Ann_PayaLebarProject.pdf?openelement

I very dumb one - i just follow what company tell me and do my simple maths. If other buddies spoke to co and has updates, will appreciate input.

Do u also know how many % of Minton revenue and profit already booked in its results?

I wish I know but Minton still under construction so I think there is still a big bulk to come. If any buddies have any inputs, it is also deeply appreciated.

Many thanks.

My friend told me months ago that LKH is a simple company and conservatively managed. I looked already and agreed - 3 local developments largely sold and cash flow will come in over next few years.

Malaysian landbank acquired together with parent company, delisted Malaysian company General Corp before GFC, so LKH has a portfolio of dirt cheap landbank in JB. Only caveat, location of these landbank is unknown and hence their current value.

They only have 2 hotels left - one in Perth which is doing very well due to severe shortage of 4 to 5 star accomodation in Perth. As there is no new supply at least till 2016 and Western Australia continued to be underpinned by resources boom, there is absolutely no worries in Perth.

Vietnam, I am not familiar but shouldn't affect LKH too much.

Aging management team coupled with delisting experience of General Corp will always open up a door for delisting for LKH (my fat dreams of course).

While LKH is narrowing discount to the conservative RNAV of $1.00, dividend yield remains decent while discount to RNAV is still at least 30% so I am inclined to ride the ongoing property stock fever. Physical property too overvalued, hedged against well run company with proven friendly track record.

[greengiraffe]

Correction to my earlier postings. Upon clarifying with old news link and verifications - office (430,000 sf), retail (95,000 sf).

The retail portion has received 62% prelease commitments. Given that this is LKH's maiden retail development, there could be a good chance that it may be kept for recurrent income.

http://www.channelnewsasia.com/stories/s...70/1/.html

Paya Lebar Central makeover under way
By Lynda Hong | Posted: 27 March 2012 1951 hrs


SINGAPORE: The remaking of Paya Lebar Central is taking shape with the groundbreaking of a new 13-storey commercial project, on Tuesday.

Paya Lebar Central has been earmarked by the government for development as a commercial hub, under its 2008 Master Plan.

At the ground breaking ceremony of Paya Lebar Square, its developer said 75 per cent of the office space has been committed.

The S$1 billion development will house 430,000 square feet of office space when it is completed in the third quarter of 2014.

Its developer added there will also be 95,000 square feet of retail space at Paya Lebar Square, that is about half the size of Tiong Bahru Plaza.

Speaking at the event, Minister of State for National Development Tan Chuan-Jin said he welcomes private-sector partnership in the remaking of the Paya Lebar and Geylang Serai precincts.

"Paya Lebar Central is one of the key growth areas identified by the government to be developed into a new community space, with a mix of office, retail, hotel and attractive public spaces," Mr Tan said.

"With about 12 hectares of land available for development and a potential commercial floor space of more than 500,000 square metres, Paya Lebar Central is envisaged to be a sizeable pedestrian-friendly hub at the fringe of the city with a distinct cultural identity."

- CNA/wk

[suntzu]

Hi greengiraffe,

Thank you for your posts. I was alerted to LKH by your insightful analysis.

Please share with me. I am bullish on JB Iskandar property longterm and am looking for Singapore property counters with landbank in JB. Besides Low Keng Huat, which other property stocks in SIngapore have a landbank of Malaysia property?

Correction to my earlier postings. Upon clarifying with old news link and verifications - office (430,000 sf), retail (95,000 sf).

The retail portion has received 62% prelease commitments. Given that this is LKH's maiden retail development, there could be a good chance that it may be kept for recurrent income.

http://www.channelnewsasia.com/stories/s...70/1/.html

Paya Lebar Central makeover under way
By Lynda Hong | Posted: 27 March 2012 1951 hrs


SINGAPORE: The remaking of Paya Lebar Central is taking shape with the groundbreaking of a new 13-storey commercial project, on Tuesday.

Paya Lebar Central has been earmarked by the government for development as a commercial hub, under its 2008 Master Plan.

At the ground breaking ceremony of Paya Lebar Square, its developer said 75 per cent of the office space has been committed.

The S$1 billion development will house 430,000 square feet of office space when it is completed in the third quarter of 2014.

Its developer added there will also be 95,000 square feet of retail space at Paya Lebar Square, that is about half the size of Tiong Bahru Plaza.

Speaking at the event, Minister of State for National Development Tan Chuan-Jin said he welcomes private-sector partnership in the remaking of the Paya Lebar and Geylang Serai precincts.

"Paya Lebar Central is one of the key growth areas identified by the government to be developed into a new community space, with a mix of office, retail, hotel and attractive public spaces," Mr Tan said.

"With about 12 hectares of land available for development and a potential commercial floor space of more than 500,000 square metres, Paya Lebar Central is envisaged to be a sizeable pedestrian-friendly hub at the fringe of the city with a distinct cultural identity."

- CNA/wk

[greengiraffe]

Hi Suntzu,

I am afraid that I can't help you with your question since I dunno much about M'sian prop companies.

I think a more direct exposure would be UEM Land (the former Renong).

Realistically, development of such a big land mess is different to Singapore. Property development in M'sia will take place in phases and dependent on how other corridors proceeds.

This could also explain why LKH has acquired their landbank in M'sia for many years and still biting their time to embark on any development.

GG

Hi greengiraffe,

Thank you for your posts. I was alerted to LKH by your insightful analysis.

Please share with me. I am bullish on JB Iskandar property longterm and am looking for Singapore property counters with landbank in JB. Besides Low Keng Huat, which other property stocks in SIngapore have a landbank of Malaysia property?

Correction to my earlier postings. Upon clarifying with old news link and verifications - office (430,000 sf), retail (95,000 sf).

The retail portion has received 62% prelease commitments. Given that this is LKH's maiden retail development, there could be a good chance that it may be kept for recurrent income.

http://www.channelnewsasia.com/stories/s...70/1/.html

Paya Lebar Central makeover under way
By Lynda Hong | Posted: 27 March 2012 1951 hrs


SINGAPORE: The remaking of Paya Lebar Central is taking shape with the groundbreaking of a new 13-storey commercial project, on Tuesday.

Paya Lebar Central has been earmarked by the government for development as a commercial hub, under its 2008 Master Plan.

At the ground breaking ceremony of Paya Lebar Square, its developer said 75 per cent of the office space has been committed.

The S$1 billion development will house 430,000 square feet of office space when it is completed in the third quarter of 2014.

Its developer added there will also be 95,000 square feet of retail space at Paya Lebar Square, that is about half the size of Tiong Bahru Plaza.

Speaking at the event, Minister of State for National Development Tan Chuan-Jin said he welcomes private-sector partnership in the remaking of the Paya Lebar and Geylang Serai precincts.

"Paya Lebar Central is one of the key growth areas identified by the government to be developed into a new community space, with a mix of office, retail, hotel and attractive public spaces," Mr Tan said.

"With about 12 hectares of land available for development and a potential commercial floor space of more than 500,000 square metres, Paya Lebar Central is envisaged to be a sizeable pedestrian-friendly hub at the fringe of the city with a distinct cultural identity."

- CNA/wk

[revelationofpyramids]

I did some research on LKH and found the biggest 6m sf of land in Johor owned by them is meant for low cost housing and near Kota Tinggi and not within Iskandar. LKH total land size in Iskandar is prob less than 4m sf.
Direct exposure to Iskandar land only via Bursa stocks like

a. Tebrau - recently in the news coz IWH is gunning for IPO soon and Tebrau is 40% owned by IWH. Tebrau owns over 40 million sf land in Iskandar... 10 times that of LKH, although its leasehold. Land valued very cheaply in its books.. like less than M$20 psf. Land is near the river and sea on the east side.

b. many usual ones like UEM Land, Mah Sing, WCT

But LKH still has the Paya Lebar sqare story.

[greengiraffe]

Fantastic work. LKH's Malaysian landbank is a good size for a company like them. Their strategy is a very long term one. In fact, they have sat on a prime piece of land in KL (together with G Corp) that is worth a lot but nothing appears to have been done yet to unlock the value.

Personally, I think what will drive LKH is their ability to recycle their proceeds from their 3 major developments in Singapore once the Singapore property market stabilises.

PL Sq is largely a done deal with the exception of its retail portion. If LKH decides to sell it, then it will end up with more cash. If they decide to hold it, then recurrent rental income will allow them to pay up to 2 cents dividends annually.

What is more interesting is what the family will do to the listing status of LKH especially when PL Sq move towards completion (when sales proceeds flow through to repay bank borrowings).

I did some research on LKH and found the biggest 6m sf of land in Johor owned by them is meant for low cost housing and near Kota Tinggi and not within Iskandar. LKH total land size in Iskandar is prob less than 4m sf.
Direct exposure to Iskandar land only via Bursa stocks like

a. Tebrau - recently in the news coz IWH is gunning for IPO soon and Tebrau is 40% owned by IWH. Tebrau owns over 40 million sf land in Iskandar... 10 times that of LKH, although its leasehold. Land valued very cheaply in its books.. like less than M$20 psf. Land is near the river and sea on the east side.

b. many usual ones like UEM Land, Mah Sing, WCT

But LKH still has the Paya Lebar sqare story.

[a74henry]

MV $0.645. Projected EPS $0.13. PE 5x.
Attractive PE & dividend yield.
BV $0.58. No safety margin.

Are the properties held at cost?

[greengiraffe]

Work harder mate. There are enough leads to help you appreciate the true worth of this co in previous threads.

GG

MV $0.645. Projected EPS $0.13. PE 5x.
Attractive PE & dividend yield.
BV $0.58. No safety margin.

Are the properties held at cost?

[a74henry]

Just analysed the charts. Seems like this counter has peaked and is in a correction mode.

[greengiraffe]

So are you evaluating LKH based on fundamentals or technicals?

Technically, it is consolidating after a good run. Fundamentally, it is very undervalued.

Just analysed the charts. Seems like this counter has peaked and is in a correction mode.