Low Keng Huat (Singapore)

[a74henry]

LKH final results to FY1/13 is expected to be released latest by 28 Mar 13 (Thursday) since it will be Good Friday on 29 Mar 13.

Expect LKH to maintain at least 4 cents dividends (ordinary 3 plus special 1) since major bulk of cashflow will only start to flow through after the financial year end.

I agree that projected DPS is $0.04. Minimum $0.03 if the management wants to hold the cash for its war chest. Anything above $0.04 is a catalyst for a rise in share price.

[greengiraffe]

Huatppy Finals: Div 3 + 1.5 up 0.5 cents, book nta rose from 53 to 65.

http://info.sgx.com/webcoranncatth.nsf/V...C003097EB/$file/20130328_LKHS_FullYearResults_FYEJan13_Att.pdf?openelement

Development
Contributions from associated companies and joint ventures increased by $55.9M to $80.0M during current
year from $24.1M during previous year. It increased by $17.6M to $32.1M in Q4 current year from $14.5M in
Q4 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 is located at the upcoming Paya Lebar Hub and directly linked by both East-West and Circle
MRT lines. As of 14 March 2013, we have sold 94% of the office units. Sale of retail units have yet to be
launched. However, the leasing of the retail units has commenced and we have achieved 72% leasing
commitments as of 14 March 2013. 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
658 units (97%) have been issued as of 14 March 2013 out of a total of 680 units. The good sales
performance was achieved despite 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.

Balance Sheet
Group shareholders’ funds increased by 21.9% to $476.1M as at 31 January 2013 from $390.5M as at 31
January 2012. Cash and cash equivalents increased by $172.6M to $205.5M as at 31 January 2013 from
$32.9M as at 31 January 2012. The Group has launched majority owned development projects, Parkland
Residences and Paya Lebar Square. The Group’s bank borrowings were used to finance the purchase of
lands for Parkland Residences and Paya Lebar Square. Gearing was 0.63 as at 31 January 2013 compared
to 1.29 as at 31 January 2012.

[Wildreamz]

After much delibration, I finally invested in LKH earlier this week at 0.71.

It paid off quickly

[greengiraffe]

LKH's earnings this year is primarily driven by Minton's progress booking.

However, as of 31 Jan 13, I do not think that Minton has achieved TOP since construction work is definitely ongoing at financial year end.

Wonder what percentage of Minton has been booked since that will affect the balance of estimated profits to be booked.

Cash flow was also boosted from return of loan from jv and associated cos - given that Minton remains in progress, this sizable item must have been related to previously completed projects that has been TOP and passed the expiration of warranty period.

Clarifications of the above by any buddies deeply appreciated.

GG

[valuehunter]

Have not studied the results yet. However, having held on tightly to my lkh shares for so many years, I'm certainly pleased with the declared dividends!

[yeokiwi]

Wonder what percentage of Minton has been booked since that will affect the balance of estimated profits to be booked.

http://www.ocbcresearch.com/pdf_reports/...30-OIR.pdf
This is the old research report from OCBC in 2010.
The profit of $170 million for minton is probably quite there with $850psf.
The associates' contribution is 94million and 26 million for this year and last year.
Assuming that minton contributes all the above associates' result, I suppose there should be another S$50 million coming in.

[greengiraffe]

Wonder what percentage of Minton has been booked since that will affect the balance of estimated profits to be booked.

http://www.ocbcresearch.com/pdf_reports/...30-OIR.pdf
This is the old research report from OCBC in 2010.
The profit of $170 million for minton is probably quite there with $850psf.
The associates' contribution is 94million and 26 million for this year and last year.
Assuming that minton contributes all the above associates' result, I suppose there should be another S$50 million coming in.

Thanks. I supposed the accounting policy is different to PL Sq and Parkland.

Anyway, the project company will not pipe up proceeds until its TOP to Kheng Leong / LKH. Hence cashflow still has mileage to go.

Cheers
GG

[greengiraffe]

ST reporter missed the most glaring and important part: dividends raised from 4 cents to 4.5 cents.

Condo share lifts Low Keng Huat's Q4 profit

Revenue down 40%, but Hougang project helps boost earnings by 30%

Published on Mar 30, 2013

Low Keng Huat jointly developed The Minton, a condominium in Hougang, with real estate developer and investor Kheng Leong. It was launched in May 2010, and all 1,145 units have been sold. -- PHOTO: KHENG LEONG GROUP

By Rachel Scully

A SHARE in The Minton condo in Hougang helped construction and hotel company Low Keng Huat lift fourth-quarter net profit.

Earnings came in at $42.5 million, up 30 per cent on the same period a year ago, while revenue for the three months to Jan 31 was $25.3 million, down 40 per cent.

The Minton was jointly developed with real estate developer and investor Kheng Leong, and was launched in May 2010. All 1,145 units have been sold.

The company recorded a net profit of $110 million for the full year, up 28 per cent, while revenue figures fell 7 per cent year-on-year to $126 million.

Low Keng Huat reported that the fall in revenue was attributed to a reduction in construction activity, which accounts for two-thirds of its business.

Its cost of sales increased by 140 per cent to $70 million, mainly due to the completion of major construction projects last year.

Marketing and administrative expenses drove up costs by $35 million for two ongoing development projects - Paya Lebar Square and Parkland Residences.

Paya Lebar Square is a 10-storey mall and office building.

As of March 14 this year, 94 per cent of its office units have been sold, while it registered 72 per cent of leasing commitments for the retail space.

Parkland Residences is a 680-unit Design, Build and Sell Scheme residential project in Upper Serangoon. Options for 97 per cent of its units have been issued as of March 14.

Revenue from Low Keng Huat's hotel and food and beverage business climbed 10.3 per cent to $57 million.

This stemmed from higher occupancy rates and room rates at its Duxton Hotel in Perth and the opening of new food outlets at the Marina Bay Sands in October 2011 and Dempsey Road in March last year.

Earnings per share was 5.77 cents in the fourth quarter, up from 4.38 cents in the same period last year, while net asset value per share was 65 cents, up from 53 cents previously. Low Keng Huat shares closed three cents higher at 73 cents on Thursday.

rjscully@sph.com.sg

[greengiraffe]

http://info.sgx.com/webcoranncatth.nsf/V...7002F8D23/$file/20130408_LKHS_DisclosureOfInt_FORM1_V4_9_1_LKB.pdf?openelement

Low Keng Boon filed open mkt purchase notices on behalf of his wife Mdm Lau Choy Lay:

4 April 13 +107k @ $0.71
5 April 13 +258k @ $0.719919

http://info.sgx.com/webcoranncatth.nsf/V...7000E37D0/$file/20130408_LKHS_Misc_SubscriptionOfShares_Kismis_Att.pdf?openelement

Enbloc Kismis Lodge:

(a) Property All the strata lots and common property comprised in strata title no.
133 in the development known as Kismis Lodge situated on the whole
of Land Lot 1305L of Mukim 5 (“Property”)
(b) Tenure of
Land
Estate in Perpetuity
© Total Land
Area
Approximately 70,283 square feet
(d) Purpose Redevelopment of the Property into 3 storey mixed landed residential
units
(e) Purchase
price
S$84.18 million

Very helpful info as plot ratio is missing for evaluations.

[Jacmar]

http://info.sgx.com/webcoranncatth.nsf/V...7002F8D23/$file/20130408_LKHS_DisclosureOfInt_FORM1_V4_9_1_LKB.pdf?openelement

Low Keng Boon filed open mkt purchase notices on behalf of his wife Mdm Lau Choy Lay:

4 April 13 +107k @ $0.71
5 April 13 +258k @ $0.719919

http://info.sgx.com/webcoranncatth.nsf/V...7000E37D0/$file/20130408_LKHS_Misc_SubscriptionOfShares_Kismis_Att.pdf?openelement

Enbloc Kismis Lodge:

(a) Property All the strata lots and common property comprised in strata title no.
133 in the development known as Kismis Lodge situated on the whole
of Land Lot 1305L of Mukim 5 (“Property”)
(b) Tenure of
Land
Estate in Perpetuity
© Total Land
Area
Approximately 70,283 square feet
(d) Purpose Redevelopment of the Property into 3 storey mixed landed residential
units
(e) Purchase
price
S$84.18 million

Very helpful info as plot ratio is missing for evaluations.

wow what an endorsement by the MD at such elevated price already. I am holding to my share tightly.
the land acquisition looks like a good bet as nowadays mix development seems to be the rage.