Low Keng Huat (Singapore)

[BlueKelah]

Added more at 55 cents today. Stable earnings with 3-5 cents every year... At this price it's more than 5% yield. Thoughts anyone?

good job, always good to buy when everyone else is panic selling
LKH has dropped 20% liao since XD.

the only thing to keep in mind is that SSH may privatise if it go back to 20-30cents. The top 20 shareholders already have ~85% of shares. If price drop down 30cent level they make attempt to privatise at 40-50cent which will be likely a done deal. very little OPMI can do.

So add more but dun add too much, at least until LKH hit nearer historical lows.

[greengiraffe]

Added more at 55 cents today. Stable earnings with 3-5 cents every year... At this price it's more than 5% yield. Thoughts anyone?

realistically DPS may just be 2 cents... if hard times hit and their landbanking exercise hit...

[cyclone]

Low Keng Huat (Singapore) Limited to dispose its wholly owned subsidiary for an aggregate consideration of approximately VND1.10 trillion (equivalent to approximately USD49.0 million).

The Subsidiary Company is a 100% foreign owned company organised and existing in Vietnam under Investment License No. 420/GP dated 25 September 1992 issued by the State Committee for Cooperation and Investment (now Ministry of Planning and Investment) (as amended). Its principal activities is as the owner and operator of  a hotel currently known as Duxton Hotel Saigon, located at No. 63 Nguyen Hue Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam.

The Company intends that the net proceeds raised shall be used for general working capital and investment purposes, and pending deployment thereof, the net proceeds may be deposited with banks and/or financial institutions, invested in short-term money markets and/or marketable securities, as the Directors may deem appropriate in the interests of the Company.

[Jacmar]

I view this as positive move as their hotel n F&B division has not been doing well. Good to get rid of if price is right. If they sell this hotel then the Perth hotel won't be too far behind. I hope they distribute some of this proceeds to us as dividends. After all their gearing is not that high. LKH is also well known to be generous in dishing out fat dividends whenever they make good profits.

After the sale of this division then LKH is left as a landlord collecting recurring income at least for the next few years till the next property cycle upturn.

[pianist]

I been to duxton hotel there for its casino gambling. It was pleasant and excellent. Service good

[slowandsteady]

This sums it up the best for me, Low Keng Huat unlocking value, which have been hidden in a very conservative book:

(a) (1) Net asset value of the assets to be disposed of 2,571,848 Net asset value of the Group 648,085,327 Size of relative figure 0.4%
(b) (2) Net profits (loss) attributable to the assets disposed of (381,465) 6 Net profits of the Group 31,795,796 Size of relative figure (1.2)%
© The aggregate value of the consideration received 68,600,000 The Company's market capitalisation(3) based on the total number of issued Shares, excluding treasury shares, as at 22 March 2016 446,983,680 Size of relative figure 15.3%

Loss making asset which was booked at 0.4% of group NAV ends up selling for 15.3% of market cap.

Similarly, last quarter, the Sungei Kadut warehouse was sold for 9.2 million, way higher than the book value of 1 million plus.

There is still a bunch of assets to be "realised" - just wait patiently and collect dividends in the mean time 

(Vested, core)

[ngcheeki]

FY2016 result is out, dividend of 4 cents consists of 3 cts final div + 1 cts of special dividend. 

The following is a short summary of the number:

Total equity after Minority Interest(S$ '000) $627,557.00
Total Number of Shares ('000) 738,816.000
NAV (S$) $0.8494
Intangibles $0.00
NTA (S$) $0.8494

Total Current Asset $462,197.00
Total Current Liability $85,985.00
Total Long term Liabilities $386,204.00
Net Current Asset ($9,992.00)
Net Current Asset Per Share ($0.014)
Cash - total Debt ($122,076.00)
Gearing -19.4526%
Net cash per shares ($0.1652)

Market Price per share (cents) $0.610
Price to Book Value 0.72
EPS $0.075
PE 8.085
DPS $0.040
Yield 6.56%

Outlook of 2016
The cooling measures introduced by the Singapore government and the release of more land for development to cool the residential market continue to slow down the sluggish property market. The Group will continue to be selective in land bidding and investments projects.

http://infopub.sgx.com/Apps?A=COW_CorpAn...16_Att.pdf
The following is some of the updates on 

AXA Tower
The prime predominantly-office cum retail development in the Central Business District has received its Planning Permit for its 
proposed enhancement works, and is pending receipt of the Written Permission and Share Value Approval from the relevant authorities. The enhancement plan includes increasing the retail footprint, building a two-storey annex block measuring about 32,000 sq ft to  house medical suites, enhancing the tower’s façade and drop-off-points, and strata-sale of the office space. The proposed plan is  expected to increase AXA Tower’s total net lettable area by 85,000 sq ft, from about 675,000 sq ft to about 760,000 sq ft.
Renovation works are currently underway to set-up the Sales Gallery and Office Show Suite. The size of the strata office units ranges 
from about 790 sq ft to 1,750 sq ft. Typically, each floor plate measures about 14,000 sq ft and can house eight office units. The 
proposed enhancement works are expected to commence in 1Q 2016.

http://perennialrealestate.listedcompany...Z09Z.3.pdf


vested

[stam]

this counter keep dropping, any value buddies still buying in?

[BlueKelah]

This is one prop counter on my watchlist. Will probably load up before next yearly dividend announcement. Price should be nice and low by then.

Think the Lows will privatise at 60cents at some stage. Wait for them to start collect again then follow..

Sent from my MotoG3 using Tapatalk

[gzbkel]

I am new to LKH, so hope people with more experience can help me understand about the Westgate JV.

In AR2016, note 12:
Westgate commercial:
Revenue: 6.983 mio
Interest exp: 8.248 mio

Westgate Tower:
Revenue: 6.536 mio
Interest exp: 7.861 mio

Total revenue is 13.5 mio, and total interest exp is 16.1 mio

Looking at note 29a, we see the LKH is receiving 3.252 mio of interest income from JVs. Can we assume this is from Westgate?
If so, the remaining 16.1 - 3.252 = 12.8 mio of interest exp is paid to banks?

Also, since the interest payment is greater than the revenue, this JV has negative operating CF. Will LKH need to extend more loans to the JV in future?
LKH aim of buying Westgate is to have recurring income, but the numbers seem to indicate that this is not happening.
Westgate is already 97% leased, so there isn't much upside to the rent.

Am I missing something here?