Low Keng Huat (Singapore)

[yeokiwi]

Just to share some news... Park Residences is doing fine, it is around 70% sold.. with property prices still creeping up, it is a matter of time that park residences will be fully sold

That is quite a commendable sale result.`

[propertyinvestor]

Just to share some news... Park Residences is doing fine, it is around 70% sold.. with property prices still creeping up, it is a matter of time that park residences will be fully sold

That is quite a commendable sale result.`

Oh thats good, the last I check earlier this year, only 25% was sold.

[camelking]

Just to share some news... Park Residences is doing fine, it is around 70% sold.. with property prices still creeping up, it is a matter of time that park residences will be fully sold

Hi,

Thank for the information.
Just wonder how did you get the info?
Don't think it is found in URA website. The last quarter announcement made by LKH mentioned that close to 50% have been sold. Of course, that was some times ago.

[money]

Just to share some news... Park Residences is doing fine, it is around 70% sold.. with property prices still creeping up, it is a matter of time that park residences will be fully sold

Hi,

Thank for the information.
Just wonder how did you get the info?
Don't think it is found in URA website. The last quarter announcement made by LKH mentioned that close to 50% have been sold. Of course, that was some times ago.

i had a a friend who bought one unit and that was what he found out. but please do your due diligence

[ngcheeki]

The 1H FY2013 result is out!!

A Short summary of the result:
Net Profit: 40 mil versus 39 mil (mainly due to the revenue recognition from The Minton)
EPS: $0.0542
NAV: $0.5481
Price to Book: 0.84
Net Gearing: 97.5%


"Contributions from associated companies and joint ventures increased by $24.1M to $28.2M during 1H current year from $4.1M in 1H previous year. It increased by $20.5M to $22.4M in Q2 current year from $1.9M in Q2 previous year. The increase was mainly due to increased profit contributions from The Minton, which was launched in May 2010. The Minton is 100% sold as of 8 June 2012. In Q4 previous year, we launched two majority owned projects, Paya Lebar Square and Parkland Residences. Paya Lebar Square, our commercial and retail project, located at the upcoming Paya Lebar Hub and directly linked by both East-West and Circle MRT lines. As of 5 September 2012, we have sold more than 90% of the office units. Sale of retail units have yet to be launched. However, the leasing of the retail units has started and we have achieved 51% leasing commitments as of 5 September 2012. The better than expected sales performance at Paya Lebar Square is an indication of the health of the commercial property market at strategic non-CBD locations. The other project launched is a DBSS residential project, Parkland Residences located at Upper Serangoon Road. Options for 485 units have been issued as of 5 September 2012 out of a total of 680 units.
The modest sales performance was achieved amidst the negative market sentiment in the residential property market as a result of the additional stamp duty imposed by the government in December 2011 and the increase in the number of BTO launches. In line with the adoption of accounting standard INT FRS 115, the Group can only recognise the revenue and related costs of development in Paya Lebar Square, a commercial development, and Parkland Residences, a DBSS development, when these projects obtain TOP. Both projects are expected to receive TOP in 2014."

http://info.sgx.com/webcoranncatth.nsf/V...7002A49E6/$file/20120912_LKHS_Ann_Second-Quarter-Results_FYE2013_Att.pdf?openelement

Vested

[greengiraffe]

By your analysis, how much more profits from Minton can we expect LKH to book from here?

PL Sq office already sold 90% - what is your best guess on the earnings just from office sales?

Thanks In Advance
Gong Gong

The 1H FY2013 result is out!!

A Short summary of the result:
Net Profit: 40 mil versus 39 mil (mainly due to the revenue recognition from The Minton)
EPS: $0.0542
NAV: $0.5481
Price to Book: 0.84
Net Gearing: 97.5%


"Contributions from associated companies and joint ventures increased by $24.1M to $28.2M during 1H current year from $4.1M in 1H previous year. It increased by $20.5M to $22.4M in Q2 current year from $1.9M in Q2 previous year. The increase was mainly due to increased profit contributions from The Minton, which was launched in May 2010. The Minton is 100% sold as of 8 June 2012. In Q4 previous year, we launched two majority owned projects, Paya Lebar Square and Parkland Residences. Paya Lebar Square, our commercial and retail project, located at the upcoming Paya Lebar Hub and directly linked by both East-West and Circle MRT lines. As of 5 September 2012, we have sold more than 90% of the office units. Sale of retail units have yet to be launched. However, the leasing of the retail units has started and we have achieved 51% leasing commitments as of 5 September 2012. The better than expected sales performance at Paya Lebar Square is an indication of the health of the commercial property market at strategic non-CBD locations. The other project launched is a DBSS residential project, Parkland Residences located at Upper Serangoon Road. Options for 485 units have been issued as of 5 September 2012 out of a total of 680 units.
The modest sales performance was achieved amidst the negative market sentiment in the residential property market as a result of the additional stamp duty imposed by the government in December 2011 and the increase in the number of BTO launches. In line with the adoption of accounting standard INT FRS 115, the Group can only recognise the revenue and related costs of development in Paya Lebar Square, a commercial development, and Parkland Residences, a DBSS development, when these projects obtain TOP. Both projects are expected to receive TOP in 2014."

http://info.sgx.com/webcoranncatth.nsf/V...7002A49E6/$file/20120912_LKHS_Ann_Second-Quarter-Results_FYE2013_Att.pdf?openelement

Vested

[ngcheeki]

By your analysis, how much more profits from Minton can we expect LKH to book from here?

PL Sq office already sold 90% - what is your best guess on the earnings just from office sales?

Thanks In Advance
Gong Gong

Development cost is around S$500 to S$550 psf (land cost S$230 + construction cost S$250 + finance and market cost)
Sale price psf is around S$800 to S$850
gain (psf) = S$300 psf
Land Size: 1,322,660 psf
Total profit of 40% Stake : S$158million or 20+ cents per share.
Assume 1/3 is complete, hence there'll be around S$100 million profit to be recognized by Nov 2014 (TOP)

Paya Lebar Square:
430,000 sqft for office
Sale Price sqft: S$1,750.
Estimated Cost: S$1.500
Net profit psf: S$250
Total Net Profit: 250x430,000 = $107.5 mil
80% Stake: S$86 mil or 11.6 cents per share

Please do your due diligence. By the way, "gong gong jia tee kong"

Vested

[bookworm]

Consistent Record can easily buy out the remaining <30% stake of LKH not held by the family at 80c/share solely from its Minton windfall. After that can still sit on about $500m profit from Paya Lebar Sq. What's stopping them from doing so? Limited risks since all project cashflows are secured already.

[yeokiwi]

Consistent Record can easily buy out the remaining <30% stake of LKH not held by the family at 80c/share solely from its Minton windfall. After that can still sit on about $500m profit from Paya Lebar Sq. What's stopping them from doing so? Limited risks since all project cashflows are secured already.

I suppose for construction companies/properties' developers, being listed make it easier to raise money through bank loans and rights when necessary. I think the interest rate of the loans is also better.

The purchase of lands and construction of Parkland and Paya lebar square already require LKH to loan half a billion through banks.

[Jacmar]

Consistent Record can easily buy out the remaining <30% stake of LKH not held by the family at 80c/share solely from its Minton windfall. After that can still sit on about $500m profit from Paya Lebar Sq. What's stopping them from doing so? Limited risks since all project cashflows are secured already.

People seem to forget that construction industry is cyclical. about 10years the whole industry was struggling and many smaller ones folded up. now we are into a good patch and there is no guarantee that it will stay that way.LKH is a very old company and they have been through all these.They are very conservative and will not stretch themselves especially after they have recently taken over the malaysian side of consistent record. they hardly bid for any projects during lately. my gut feel is no privatisation at least for the next few years.
what i like about LKH is that they pare down their cash holdings by giving generous dividends.this also makes it less likely to go privatisation route.I am expecting at least 4.5cents this year and won't be surprised that if they give 5cents....10% dividend yield which they have been consistently maintaing in last 3 years.