Noel Gifts International

[¯|_(ツ)_/¯]

Noel 1H result as at 31 Dec 2020
Rev $7m (vs 8m)
GP  $3m (vs 4m)
NP  $223k (vs -349k)

The challenges faced by the Group due to the COVID-19 pandemic as announced at the last reporting are still unabated. The Group is concerned that any reduction in Job Support Scheme would have a negative impact on the Group’s financials.
The Group will continue to focus on cost management and explore new business opportunities. We remain cautious and would take necessary action to safeguard the Group’s interests.
https://links.sgx.com/FileOpen/Noel%20Gr...eID=647358

Stay home and stay healthy, everyone.

[¯|_(ツ)_/¯]

noel@20
FY2021 result with 3cents dividend (0.3 + 2.7 special)


https://drive.google.com/open?id=1tVtAaV...9g_6hb_U1n-

Stay home and stay safe, everyone.

[dydx]

The total $0.03/share in dividends declared is indeed a pleasant surprise, as last FY's dividends totalled only $0.015/share.

Since listing in 1993, Noel Gifts' dividend payout record has been exemplary - even better than most REITs.

[pianist]

Just sold ten units in their Noel building but net profits attributable to the assets disposed is only $358,000, seems lower than those Bto flippers ah

[weijian]

Just sold ten units in their Noel building but net profits attributable to the assets disposed is only $358,000, seems lower than those Bto flippers ah

hi pianist,
I took a quick look and see the below in the annual report under their accounting principles:

Subsequent to initial recognition, investment properties are measured at fair value.

Those 10 industrial units are classified under investment properties. As such, they are always recognized at fair value, meaning they are updated to market valuation (assume this is their definition of fair value) and any gain/loss is an accounting entry on the P/L and B/S.

The 358k is probably the net difference (after taxes, commissions and duties) between FY22 valuation and current SPA price. To get the "full gain", you will need to trace and add back the previous years of "fair value gains" - But it is probably come to naught because I don't think you will lose any money (after inflation) buying freehold property in Spore! 

[pianist]

I see, thanks for the efforts to further clarify on this.

[dydx]

50 Playfair Rd is only 4 minutes walk (approx. 250 metres) to Tai Seng MRT Station, via Harper Rd. Therefore, as an old building, it is ripe for redevelopment.

The 10 strata units in the property represent about 39% of its total share value. Therefore, Noel does carry quite a lot of weight in a potential collective sale decision.

Assuming the 10 strata units are sold for just a 10% premium over their latest valuation at $14.7m, Noel stands to receive approx. $16.0m, equivalent to $0.156/share. Bearing in mind Noel has an existing large cash reserve of $14.0m (including $2.7m invested in financial assets) - equivalent to another $0.137/share - Noel could easily afford to distribute the entire sale proceeds as a special dividend.

[dydx]

The collective sale of 50 Playfair Rd at $81.18m (16% higher than guidance price at $70.0m) is a positive surprise...
https://links.sgx.com/FileOpen/Noel%20-%...eID=779021
https://www.edgeprop.sg/property-news/no...ale-70-mil
https://www.etcsea.com/50-playfair-road-...8-million/

There should be nice distribution to shareholders coming after completion of the sale.