Iskandar housing glut may hit rental yields: Rehda chief, Singapore Premium News & Headlines - THE BUSINESS TIMES:
'via Blog this'
Tuesday, September 30, 2014
Saturday, September 27, 2014
Strong insider buying @ SERIAL SYSTEM, LEY CHOON GROUP
Strong insider buying @ SERIAL SYSTEM, LEY CHOON GROUP:
an established one-stop underground utilities infrastructure service provider, was listed on the mainboard of the Singapore Exchange in August 2012 via a reverse takeover of Ultro Technologies.
The stock price, recently trading at 18 cents, is way below the 28 cents at which the RTO was transacted involving an issue of 392.9m new shares.
There was a compliance placement, as part of the RTO exercise, involving an additional issue of 57.6m new shares and sale of 23.4m vendor shares at $0.22.
There has since been a spate of big share purchases, as shown in the table at the top.
A placement of new shares in Aug 2013 at 16.42 cents was taken up by Hiap Hoe Investment, a subsidiary of property developer Hiap Hoe Limited, and Mr Teo Kian Huat, a private investor and a partner at a fund management company in Singapore.
Meanwhile, the other key buyer was Zheng Choon Holding, the investment vehicle of the controlling shareholders (the Toh family) of Ley Choon, which bought back shares from the open market at various times of the year.
In a report on Nov 4, Voyage Research estimated that Ley Choon Group will achieve $12.2 million (or 2.1 cents a share) in net earnings in 2013, which means the stock (18 cents) is currently trading at 8.6X earnings.
However, on 13 Nov, the group reported that in the first nine months of 2013, it had already achieved $19.0 million in net profit. This was boosted by a $11.1 million gain recognized on disposal of a building at Senoko Drive.
No dividend was declared for 2012 but in its annual report 2012, chairman Toh Choo Huat said the board would recommend a final dividend of not less than 30% of the net profit attributable to shareholders for FY 2013.
'via Blog this'
an established one-stop underground utilities infrastructure service provider, was listed on the mainboard of the Singapore Exchange in August 2012 via a reverse takeover of Ultro Technologies.
The stock price, recently trading at 18 cents, is way below the 28 cents at which the RTO was transacted involving an issue of 392.9m new shares.
There was a compliance placement, as part of the RTO exercise, involving an additional issue of 57.6m new shares and sale of 23.4m vendor shares at $0.22.
There has since been a spate of big share purchases, as shown in the table at the top.
A placement of new shares in Aug 2013 at 16.42 cents was taken up by Hiap Hoe Investment, a subsidiary of property developer Hiap Hoe Limited, and Mr Teo Kian Huat, a private investor and a partner at a fund management company in Singapore.
Meanwhile, the other key buyer was Zheng Choon Holding, the investment vehicle of the controlling shareholders (the Toh family) of Ley Choon, which bought back shares from the open market at various times of the year.
In a report on Nov 4, Voyage Research estimated that Ley Choon Group will achieve $12.2 million (or 2.1 cents a share) in net earnings in 2013, which means the stock (18 cents) is currently trading at 8.6X earnings.
However, on 13 Nov, the group reported that in the first nine months of 2013, it had already achieved $19.0 million in net profit. This was boosted by a $11.1 million gain recognized on disposal of a building at Senoko Drive.
No dividend was declared for 2012 but in its annual report 2012, chairman Toh Choo Huat said the board would recommend a final dividend of not less than 30% of the net profit attributable to shareholders for FY 2013.
'via Blog this'
LEY CHOON GROUP: Scaling up in Singapore, making inroads overseas
LEY CHOON GROUP: Scaling up in Singapore, making inroads overseas
:Written by Leong Chan Teik The NextInsight Team
NOT MANY SINGAPORE construction companies have succeeded in generating sizeable revenue from overseas. Ley Choon Group is an exception -- and increasingly so.
Over the next few months, Ley Choon will fit out its new plant in Yantai, China for recycling construction waste.
In Brunei which Ley Choon ventured into in late 2011, its 51%-owned joint venture has already announced nine contracts worth S$84 million for public infrastructure projects -- with the help of extra funding from Ley Choon as well as its niche expertise in laying pipes.
The story of Ley Choon's venture into China was shared with NextInsight recently by its CEO, Toh Choo Huat.
A regular traveller to China for the past 20 years, Mr Toh recalled travelling to Yantai a few years ago after hearing good things about it from the Chinese workers employed at Ley Choon.
There, he noted the extensive on-going development of the city which involved the tearing down of old structures, which generated a lot of construction waste. He approached local officials with the vision of a recycling plant.
"A lot of people think that recycling is just crushing the stones and using them again. It's more than that -- it's about converting them into products such as bricks, asphalt and ready-mix concrete," said Mr Toh.
Executive director Francis Koh recalled: "We invited government officials to view our operations in Lim Chu Kang and they were impressed. Soon we signed a M.O.U and got a 50,000 sq m piece of land to set up a plant in Yantai."
Contractors will have to pay Ley Choon for taking in the waste while Ley Choon will also make money from the sale of recycled products. The local government is offering tax rebates to Ley Choon.
Ley Choon, which is big on asphalt production and recycling in Singapore, plans to also build an asphalt plant to process the asphalt from roads in Yantai which are torn up for expansion and re-routing, and extract bitumen as the raw material for producing new asphalt.
Such ventures, and likely more to come, involving Ley Choon's established core expertise help explain why 2 institutions were attracted to Ley Choon just several months ago.
First, Hiap Hoe Investment, the investment arm of property developer Hiap Hoe, took a 14.9% stake via the issue of new Ley Choon shares.
Second, the Islamic Bank of Asia agreed to become a strategic investor via the issue of S$15 million of convertible instruments by Ley Choon. (The Islamic Bank of Asia is a joint venture between DBS Bank and prominent investors based in the Gulf Cooperation Council
Doubling asphalt production & market share
Ley Choon last year completed the biggest asphalt premix plant in Singapore, and Mr Toh emphasised its outstanding features.
For example, it is the first such plant in Singapore that has such a custom-made lift -- and it goes all the way to the top of the 15-storey structure, a feature that is appreciated especially by the maintenance workers.
Daily, it produces asphalt premix to fill more than 100 trucks to transport to various road projects in Singapore. In all, Ley Choon - which has another plant - has doubled its actual production of asphalt.
Capacity-wise, the total has tripled from 175 tonnes per hour to 575 tonnes per hour.
All this new capacity will enable Ley Choon to meet the demands of its road maintenance projects, including two contracts totalling S$64 million from the Land Transport Authority as announced last July.
In its other business of laying water and gas pipes and electrical cables and rehabilitating sewer lines. Ley Choon digs up roads and re-lay them -- which means asphalt is needed here too.
Mr Toh said some 60% of the output is for internal use while the rest is sold to third parties. A year or two ago, third-party sales accounted for only 10-15% of the production.
As for market share, Mr Toh said that Ley Choon had about 20% but with its second plant, the figure is expected to shoot up to 40%.
With Ley Choon consistently winning contracts from the Public Utilities Board (PUB) and the Land Transport Authority (LTA), one gets interested in the key competitive edge it wields.
Turns out that it has to do with, among other things, having the construction waste recycling plant and its own asphalt plants, and being able to deploy its skilled workers across a variety of business niches when demand slackens in one niche and rises in another.
"We are strong in underground utilities and we have synergies from owning our own recycling and asphalt plants," said Mr Koh.
Having a large in-house pool of workers (more than 1,400) instead of relying on sub-contractors has proven to beneficial in the light of some of its peers experiencing difficulty engaging sub-contractors.
Amazingly, Ley Choon also has customised CCTV camera systems set up on-site which it allows clients (such as LTA and PUB) to view real-time footage of the work via the smartphone or tablets. Naturally, the clients are pleased with that.
There are several other leading uses of technology in Ley Choon. Daily, workers key in details of their work on-site into an electronic worksheet -- the number of work-hours clocked, pipes laid, etc.
The data in aggregate tells management instantly about the progress of a project, expenses and materials incurred, etc.
Despite its leadership position in Singapore and its burgeoning overseas business potential, Ley Choon stock traded in a tight range of 17.5-22.5 cents throughout 2013. At 18.4 cents recently, it sports a trailing PE of 9.2, according to Bloomberg data.
Its 9-month result: revenue was up 3.3% to $109.8 million and net profit was $19.0 million (9M2012: loss of $2.9 million), inclusive of a $11.4-million fair value gain on disposal of property.
Coming soon: As the final dividend, Ley Choon has promised a 30% payout of its 2013 net earnings (inclusive of the fair value gain). Going by Voyage Research's forecast of $12 million net profit and taking into account the $11.4-million fair value gain, the dividend yield could hit 6%.
'via Blog this'
:Written by Leong Chan Teik The NextInsight Team
Sunday, 19 January 2014 12:07
Over the next few months, Ley Choon will fit out its new plant in Yantai, China for recycling construction waste.
In Brunei which Ley Choon ventured into in late 2011, its 51%-owned joint venture has already announced nine contracts worth S$84 million for public infrastructure projects -- with the help of extra funding from Ley Choon as well as its niche expertise in laying pipes.
The story of Ley Choon's venture into China was shared with NextInsight recently by its CEO, Toh Choo Huat.
A regular traveller to China for the past 20 years, Mr Toh recalled travelling to Yantai a few years ago after hearing good things about it from the Chinese workers employed at Ley Choon.
There, he noted the extensive on-going development of the city which involved the tearing down of old structures, which generated a lot of construction waste. He approached local officials with the vision of a recycling plant.
"A lot of people think that recycling is just crushing the stones and using them again. It's more than that -- it's about converting them into products such as bricks, asphalt and ready-mix concrete," said Mr Toh.
Executive director Francis Koh recalled: "We invited government officials to view our operations in Lim Chu Kang and they were impressed. Soon we signed a M.O.U and got a 50,000 sq m piece of land to set up a plant in Yantai."
Contractors will have to pay Ley Choon for taking in the waste while Ley Choon will also make money from the sale of recycled products. The local government is offering tax rebates to Ley Choon.
Ley Choon, which is big on asphalt production and recycling in Singapore, plans to also build an asphalt plant to process the asphalt from roads in Yantai which are torn up for expansion and re-routing, and extract bitumen as the raw material for producing new asphalt.
Such ventures, and likely more to come, involving Ley Choon's established core expertise help explain why 2 institutions were attracted to Ley Choon just several months ago.
First, Hiap Hoe Investment, the investment arm of property developer Hiap Hoe, took a 14.9% stake via the issue of new Ley Choon shares.
Second, the Islamic Bank of Asia agreed to become a strategic investor via the issue of S$15 million of convertible instruments by Ley Choon. (The Islamic Bank of Asia is a joint venture between DBS Bank and prominent investors based in the Gulf Cooperation Council
Doubling asphalt production & market share
Ley Choon last year completed the biggest asphalt premix plant in Singapore, and Mr Toh emphasised its outstanding features.
For example, it is the first such plant in Singapore that has such a custom-made lift -- and it goes all the way to the top of the 15-storey structure, a feature that is appreciated especially by the maintenance workers.
Daily, it produces asphalt premix to fill more than 100 trucks to transport to various road projects in Singapore. In all, Ley Choon - which has another plant - has doubled its actual production of asphalt.
Capacity-wise, the total has tripled from 175 tonnes per hour to 575 tonnes per hour.
All this new capacity will enable Ley Choon to meet the demands of its road maintenance projects, including two contracts totalling S$64 million from the Land Transport Authority as announced last July.
In its other business of laying water and gas pipes and electrical cables and rehabilitating sewer lines. Ley Choon digs up roads and re-lay them -- which means asphalt is needed here too.
Mr Toh said some 60% of the output is for internal use while the rest is sold to third parties. A year or two ago, third-party sales accounted for only 10-15% of the production.
As for market share, Mr Toh said that Ley Choon had about 20% but with its second plant, the figure is expected to shoot up to 40%.
With Ley Choon consistently winning contracts from the Public Utilities Board (PUB) and the Land Transport Authority (LTA), one gets interested in the key competitive edge it wields.
Turns out that it has to do with, among other things, having the construction waste recycling plant and its own asphalt plants, and being able to deploy its skilled workers across a variety of business niches when demand slackens in one niche and rises in another.
"We are strong in underground utilities and we have synergies from owning our own recycling and asphalt plants," said Mr Koh.
Having a large in-house pool of workers (more than 1,400) instead of relying on sub-contractors has proven to beneficial in the light of some of its peers experiencing difficulty engaging sub-contractors.
Amazingly, Ley Choon also has customised CCTV camera systems set up on-site which it allows clients (such as LTA and PUB) to view real-time footage of the work via the smartphone or tablets. Naturally, the clients are pleased with that.
There are several other leading uses of technology in Ley Choon. Daily, workers key in details of their work on-site into an electronic worksheet -- the number of work-hours clocked, pipes laid, etc.
The data in aggregate tells management instantly about the progress of a project, expenses and materials incurred, etc.
Despite its leadership position in Singapore and its burgeoning overseas business potential, Ley Choon stock traded in a tight range of 17.5-22.5 cents throughout 2013. At 18.4 cents recently, it sports a trailing PE of 9.2, according to Bloomberg data.
Its 9-month result: revenue was up 3.3% to $109.8 million and net profit was $19.0 million (9M2012: loss of $2.9 million), inclusive of a $11.4-million fair value gain on disposal of property.
Coming soon: As the final dividend, Ley Choon has promised a 30% payout of its 2013 net earnings (inclusive of the fair value gain). Going by Voyage Research's forecast of $12 million net profit and taking into account the $11.4-million fair value gain, the dividend yield could hit 6%.
'via Blog this'
LEY CHOON: Opens 2nd asphalt plant ahead of demand from huge projects
LEY CHOON: Opens 2nd asphalt plant ahead of demand from huge projects:Written by The NextInsight Team
Tuesday, 23 September 2014 06:36
SEVERAL HUGE infrastructure plans are set to be executed in Singapore in the coming years.
The expansion of Changi International Airport. The building of Changi East Airbase. The construction of North-South Expressway. The redevelopment of Paya Lebar Airbase into a sprawling residential, commercial and industrial township.
Such projects will require the laying of roads, amongst other things.
Specifically, for Ley Choon Group, they will require lots and lots of asphalt.
"The Group believes that these mega developments will provide substantial opportunities for its new plant to supply asphalt premix," said executive chairman and CEO Toh Choo Huat at the opening of its second asphalt recycling plant in Sungei Kadut last Friday.
'via Blog this'
Such projects will require the laying of roads, amongst other things.
Specifically, for Ley Choon Group, they will require lots and lots of asphalt.
"The Group believes that these mega developments will provide substantial opportunities for its new plant to supply asphalt premix," said executive chairman and CEO Toh Choo Huat at the opening of its second asphalt recycling plant in Sungei Kadut last Friday.
The plant is 45 metres tall and has a production capacity of 400 tons of asphalt per hour (equivalent to 25 loads of tipper truck), making it the largest single asphalt plant in Singapore, and possibly in Southeast Asia.
The new plant more than triples Ley Choon’s production capacity from 175 tons per hour to 575 tons per hour.
Besides the increase in production capacity, this plant employs state-of-the-art technology to enable it to recycle bitumen and aggregates up to 70%, far higher than the industry standard of 30% in Singapore.
Ley Choon also has set up a $2 million R&D centre to develop new asphalt formulate, increase the company’s recycling rate and improve its overall asphalt quality. The new R&D centre has created good jobs, as it employs 9 PMETs (professionals, managers, executives and technicians) for positions such as researcher, engineer and laboratory technician.
Besides the increase in production capacity, this plant employs state-of-the-art technology to enable it to recycle bitumen and aggregates up to 70%, far higher than the industry standard of 30% in Singapore.
Ley Choon also has set up a $2 million R&D centre to develop new asphalt formulate, increase the company’s recycling rate and improve its overall asphalt quality. The new R&D centre has created good jobs, as it employs 9 PMETs (professionals, managers, executives and technicians) for positions such as researcher, engineer and laboratory technician.
Thursday, September 25, 2014
Mystery Man Who Moves Japanese Markets Made More Than 1 Million Trades - Bloomberg
Mystery Man Who Moves Japanese Markets Made More Than 1 Million Trades - Bloomberg: "“Buy stocks that are being bought, and sell stocks that are being sold.”"
'via Blog this'
'via Blog this'
Time to worry? Russell 2000 ‘death cross’ looms - The Tell - MarketWatch
Time to worry? Russell 2000 ‘death cross’ looms - The Tell - MarketWatch: "He notes that an investor who shorted the index after the last death cross in 2011 would have been down 19% by the time it had reversed, while someone who shorted all 19 signals would have lost an average of 5.55% and made money only four times. The bottom line, Detrick says, is that while the death cross could mark the start of a big downtrend, it’s not a “clear-cut bearish signal.”
–William Watts"
'via Blog this'
–William Watts"
'via Blog this'
Tuesday, September 23, 2014
Weak market slows Straits Trading's divestment plans, Top Stories Premium News & Headlines - THE BUSINESS TIMES
Weak market slows Straits Trading's divestment plans, Top Stories Premium News & Headlines - THE BUSINESS TIMES:
'via Blog this'
[SINGAPORE] The Straits Trading Company has had to shift gear in its drive to cash out of low-yielding hard assets - no thanks to headwinds in the property market.
Still, divesting its remaining hard assets and setting up new real estate funds as growth engines remain on the cards. The target? An ambitious 10 per cent return on its business units in the long run.
"We have already signalled to the market that at the right price, we will sell our hard assets. The underlying reason is they are low-yielding," said group executive chairman Chew Gek Khim in a recent interview.
"If we sell them at deep discounts, we could convert them very quickly, but it's not something that I would want to do," she said, adding that it is also viable to directly inject some of these assets into funds.
The group's latest divestment was the sale of its flagship Straits Trading Building in Raffles Place to the Sun Venture Group this month for S$450 million, with an estimated gain of S$373.3 million based on a historical cost of S$70.6 million.
Its 2013 annual report showed that it also owned six good-class bungalows, 12 condo units in Gallop Green, 14 units in The Holland Collection and some properties in Malaysia. One of the bungalows on Cable Road was recently sold at a price said to be S$31.8 million or S$1,904 per square foot.
Ms Chew pointed out that the current yields are not where she would like them to be. The group has to first increase its returns before it could raise its free float and usher in more shareholders.
She accepted that the journey to a 10 per cent blended annual yield will involve "very hard work".
The wheels were set in motion after Ms Chew took over the reins of Straits Trading in 2008. The group has been shifting out of lower-yielding assets and ploughing cash into ventures that are expected to reap higher and more sustainable returns.
They include a strategic alliance in real estate with ARA Asset Management and its chairman John Lim as well as a hospitality tie-up with Far East Orchard.
By doing so, Straits Trading has created growth platforms in real estate, fund management and hospitality. It now hopes to nudge them towards faster and sustainable growth.
One key growth driver is expected to come from the new real estate platform, Straits Real Estate (SRE), a co-investment vehicle formed with ARA's Mr Lim last October when Straits Trading acquired a 20.1 per cent stake in ARA. SRE has a capital commitment of up to S$950 million by end-2016, of which Mr Lim is putting in up to S$100 million of his own money.
According to Ms Chew, this fund could reap "very high returns" given its flexibility to take on more risk in diverse real estate investments such as development projects, debt backed by real estate and distressed assets.
A development fund of S$80 million has been set up under SRE to look into development projects in Australia and South-east Asia.
As part of the tie-up with ARA, the latter is also managing Straits Trading's entire investment property portfolio, excluding hospitality-related assets, as a separate account.
Straits Trading's growth platform for hospitality is the 30-70 joint venture with Far East Orchard formed last April. Both parties injected their respective hospitality assets into the venture and agreed to pursue new opportunities together.
This has allowed Straits Trading to transform from a manager of 3,000 rooms under the Rendezvous brand to one of the largest hospitality player in the Asia-Pacific with over 13,000 rooms under management across more than 80 properties.
Ms Chew said: "If you want to do well in the current environment, you need to have scale. In the course of doing these tie-ups, we believe we have found very strong operating partners, so our strength becomes that of a capital allocator, adding value through knowing how to move and structure capital."
Though she is bullish about the changes that have taken place, Ms Chew flagged that profits may be slow and lumpy initially.
Straits Trading swung to a net profit of S$119.5 million last year after being in the red in 2012 when it marked a net loss of S$55.2 million due mainly to impairment provisions from the restructuring. But it again incurred a net loss of S$5.8 million for the second quarter ended June 30 this year, no thanks to fair value losses on investment properties.
Raising the free float of the group from the current 16 per cent to attract a wider following of fund managers is still in the planning, but that will take a while, Ms Chew said, explaining that shareholders with a shorter horizon tend to look for better financial performance every quarter.
Tecity Group, founded by Ms Chew's late grandfather Tan Chin Tuan, holds a 70 per cent stake in Straits Trading. Fund management firms Aberdeen and Third Avenue own respective stakes of 8.15 per cent and 7.32 per cent.
"The transformation has allowed us to squeeze returns out of the old entity. As we transform it and build a new engine, it will take time and that will be slow," Ms Chew said. "But if it works, it will be sustainable over a much longer term."
Thursday, September 18, 2014
Wednesday, September 17, 2014
Are You Ready For Market Volatility? - yong888@gmail.com - Gmail
Are You Ready For Market Volatility? - yong888@gmail.com - Gmail: " Peter Lynch once said: “You have to know what you own and why you want to own it”."
Buffett told investors: “A truck driver should only proceed to drive over a bridge, if the weight that the bridge can support greatly exceeds the weight of the vehicle”. In other words, the driver should factor in a decent margin of safety.
'via Blog this'
Buffett told investors: “A truck driver should only proceed to drive over a bridge, if the weight that the bridge can support greatly exceeds the weight of the vehicle”. In other words, the driver should factor in a decent margin of safety.
'via Blog this'
Thursday, September 11, 2014
Tuesday, September 9, 2014
CEOs sit on good news till it’s time to sell stock, study finds - Capitol Report - MarketWatch
CEOs sit on good news till it’s time to sell stock, study finds - Capitol Report - MarketWatch: "Chief executives strategically time the release of good news to coincide with months in which their equity vests, according to a new study.
The study, first reported by the Financial Times, found that CEOs apportion 5% more “discretionary news” in vesting month than in prior months.
The study by the London Business School’s Alex Edmans and Moqi Xu, the National University of Singapore’s Luis Goncavles-Pinto and Insead’s Yanbo Wang looked at company news releases and the subsequent media reports for tone. The disclosure of one discretionary news item in a vesting month generates a significant 16-day abnormal return of 28 basis points, they found.
Since the average CEO equity sale is over 6% of average daily trading volume, chief executives also benefit from the increased liquidity caused by an information release.
– Steve Goldstein"
'via Blog this'
The study, first reported by the Financial Times, found that CEOs apportion 5% more “discretionary news” in vesting month than in prior months.
The study by the London Business School’s Alex Edmans and Moqi Xu, the National University of Singapore’s Luis Goncavles-Pinto and Insead’s Yanbo Wang looked at company news releases and the subsequent media reports for tone. The disclosure of one discretionary news item in a vesting month generates a significant 16-day abnormal return of 28 basis points, they found.
Since the average CEO equity sale is over 6% of average daily trading volume, chief executives also benefit from the increased liquidity caused by an information release.
– Steve Goldstein"
'via Blog this'
Monday, September 8, 2014
The Straits Trading Company Limited Has Just Unlocked S$450 million In Value for Its Shareholders | The Motley Fool Singapore
The Straits Trading Company Limited Has Just Unlocked S$450 million In Value for Its Shareholders | The Motley Fool Singapore: "Interestingly, ARA Asset Management Limited (SGX: D1R) may also be a beneficiary of this deal. Based on the strategic alliance ARA formed with Straits Trading back in October 2013, ARA will be managing the assets held under Straits Real Estate Pte. Ltd, which is a 90:10 joint venture owned by Straits Trading and Mr John Lim, Group Chief Executive Officer of ARA.
The capital received from the sale of Straits Trading Building could be pumped into Straits Real Estate by Straits Trading to acquire the “potentially higher return real estate opportunities”. If that occurs, it will be a boon for ARA as it will receive management fees from managing those assets."
'via Blog this'
The capital received from the sale of Straits Trading Building could be pumped into Straits Real Estate by Straits Trading to acquire the “potentially higher return real estate opportunities”. If that occurs, it will be a boon for ARA as it will receive management fees from managing those assets."
'via Blog this'
What to do about a profit warning? | The Motley Fool Singapore
What to do about a profit warning? | The Motley Fool Singapore: "Warren Buffett once said that the dumbest reason for buying a share is because it is going up. By inference, then, a good reason to take a closer look at a share could be when it falls dramatically, such as after a profit warning."
'via Blog this'
'via Blog this'
Saturday, September 6, 2014
Deconstruct Your Way To Greater Wealth - yong888@gmail.com - Gmail
Deconstruct Your Way To Greater Wealth - yong888@gmail.com - Gmail:
Warren Buffett once said: “The stock market is a no-called strike game. You don’t have to swing at everything – you can wait for your pitch”.
'via Blog this'
Warren Buffett once said: “The stock market is a no-called strike game. You don’t have to swing at everything – you can wait for your pitch”.
'via Blog this'
Friday, September 5, 2014
STRAITS TRADING ANNOUNCES SALE OF STRAITS TRADING BUILDING TO SUN VENTURE GROUP FOR $450 MILLION
MEDIA RELEASE
Proceeds to be redeployed to pursue higher-yielding real estate opportunities
Redeployment of proceeds to further strengthen its real estate ecosystem
SINGAPORE, 5 September 2014 – The Straits Trading Company Limited (“Straits Trading” or
“Company”) announced today that it has signed an agreement for the sale of the Straits Trading
Building to the Sun Venture Group (“Sun Venture”), for $450 million.
The monetisation is in line with the Company’s strategy of redeploying its capital from its portfolio of
high quality, but low yielding investment properties into potentially higher return real estate
opportunities.
The redeployment of the proceeds will also strengthen the development of Straits Trading’s real
estate ecosystem anchored by its 89.5% interest in Straits Real Estate Pte. Ltd., its 20.1% interest in
ARA Asset Management Ltd, and its 5.8% aggregate interest in Suntec REIT.
Ms Chew Gek Khim, Executive Chairman of Straits Trading said, “The monetisation of the Straits
Trading Building is a significant step to unlock value from our property assets and transform our real
estate business into an engine of growth. In redeploying the proceeds, we will be able to pursue a
wider spectrum of value-accretive real-estate opportunities and also further the development of our
real estate ecosystem."
The Company is expected to realise an estimated capital gain of $39 million on the sale of the
building based on its latest book value as at 30 June 2014. Based on historical cost, the gain to the
Company will be $373 million.
Sun Venture is a Singapore-based real estate developer and investor which currently owns and
manages various commercial real estate in Singapore. Sun Venture's portfolio of commercial assets
include an office building at 50 Scotts Road, four floors at Samsung Hub, Westgate Tower and Paya
Lebar Square.
The transaction is expected to be completed by the end of 2014.
--- END ---2
'via Blog this'
Proceeds to be redeployed to pursue higher-yielding real estate opportunities
Redeployment of proceeds to further strengthen its real estate ecosystem
SINGAPORE, 5 September 2014 – The Straits Trading Company Limited (“Straits Trading” or
“Company”) announced today that it has signed an agreement for the sale of the Straits Trading
Building to the Sun Venture Group (“Sun Venture”), for $450 million.
The monetisation is in line with the Company’s strategy of redeploying its capital from its portfolio of
high quality, but low yielding investment properties into potentially higher return real estate
opportunities.
The redeployment of the proceeds will also strengthen the development of Straits Trading’s real
estate ecosystem anchored by its 89.5% interest in Straits Real Estate Pte. Ltd., its 20.1% interest in
ARA Asset Management Ltd, and its 5.8% aggregate interest in Suntec REIT.
Ms Chew Gek Khim, Executive Chairman of Straits Trading said, “The monetisation of the Straits
Trading Building is a significant step to unlock value from our property assets and transform our real
estate business into an engine of growth. In redeploying the proceeds, we will be able to pursue a
wider spectrum of value-accretive real-estate opportunities and also further the development of our
real estate ecosystem."
The Company is expected to realise an estimated capital gain of $39 million on the sale of the
building based on its latest book value as at 30 June 2014. Based on historical cost, the gain to the
Company will be $373 million.
Sun Venture is a Singapore-based real estate developer and investor which currently owns and
manages various commercial real estate in Singapore. Sun Venture's portfolio of commercial assets
include an office building at 50 Scotts Road, four floors at Samsung Hub, Westgate Tower and Paya
Lebar Square.
The transaction is expected to be completed by the end of 2014.
--- END ---2
'via Blog this'
Wednesday, September 3, 2014
OCBC Investment Research keeps 'buy' call and 50-c target on Midas Holdings
MIDAS: Buy, 50-c target; CENTURION: Falling occupancy to come:
China Railway Corporation (CRC) recently announced the tender for 776 sets of cab integrated radio communication equipment (CIR), implying that the total number of multiple units (MUs) likely to be released for tenders in 2014 is 388 since two CIRs are needed for each MU with eight carriages.
The total value expected is ~CNY70b and likely to be shared between China CNR Corporation (CNR) and CSR Corporation (CSR).
We believe Midas Holdings (Midas) is poised to benefit since the majority of its revenue is generated through contracts with CNR and CSR.
Furthermore, we believe winning a global award (overall 2014 winner of ‘Carbody’ category) from Siemens’ Rail Systems Division allows Midas to have more international recognition and improves its position to compete in the global railway market.
The award also gives Midas an edge over its competitors to win new contracts from Siemens in the future.
We believe it is still too early to determine any impact from the award and with the recent tenders already factored in our model, we maintain BUY with an unchanged fair value of S$0.50.
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China Railway Corporation (CRC) recently announced the tender for 776 sets of cab integrated radio communication equipment (CIR), implying that the total number of multiple units (MUs) likely to be released for tenders in 2014 is 388 since two CIRs are needed for each MU with eight carriages.
The total value expected is ~CNY70b and likely to be shared between China CNR Corporation (CNR) and CSR Corporation (CSR).
We believe Midas Holdings (Midas) is poised to benefit since the majority of its revenue is generated through contracts with CNR and CSR.
Furthermore, we believe winning a global award (overall 2014 winner of ‘Carbody’ category) from Siemens’ Rail Systems Division allows Midas to have more international recognition and improves its position to compete in the global railway market.
The award also gives Midas an edge over its competitors to win new contracts from Siemens in the future.
We believe it is still too early to determine any impact from the award and with the recent tenders already factored in our model, we maintain BUY with an unchanged fair value of S$0.50.
'via Blog this'
Monday, September 1, 2014
CHINA AVIATION OIL: 5th consecutive year of record profits
CHINA AVIATION OIL: 5th consecutive year of record profits:
CHINA AVIATION OIL, which holds the monopoly for importing jet fuel into China, not only flew to record profit levels last year but made it its fifth consecutive year of achieving record profits.
Oddly, the market has not rewarded the company with a record-breaking stock price(see chart below).
In fact, the stock is currently trading at 87.5 cents, a level which is far below its peak in 2010.
The PE is 8.4X on last year's earnings, which does not appear to be expensive at all for a company that not only has achieved rising profitability but has a S$750-million market cap -- sizeable enough to attract fund-buying.
CAO is the largest supplier of jet fuel to the three largest Chinese airlines whose aircraft call at 30 international airports outside China, including locations in Europe, North America, Asia Pacific and Middle East.
CAO proposed a first and final dividend for FY2013 of 2 SG cents a share, or a 2.3% yield on the current stock price. The dividend is unchanged from the year before but it's payable also on the bonus shares (1 bonus share for 5 CAO shares) issued recently.
A recent dampener on investor sentiment could be its 4Q2013 result: Net profit fell 25.7% to US$13.5 million, largely due to a 39% fall in contribution from associates.
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CHINA AVIATION OIL, which holds the monopoly for importing jet fuel into China, not only flew to record profit levels last year but made it its fifth consecutive year of achieving record profits.
Written by The NextInsight Team
Wednesday, 02 April 2014 06:31
Net profit attributable to shareholders increased 6.1% year-on-year to US$70.2 million while group revenue also hit another record high of US$15.6 billion.
Oddly, the market has not rewarded the company with a record-breaking stock price(see chart below).
In fact, the stock is currently trading at 87.5 cents, a level which is far below its peak in 2010.
The PE is 8.4X on last year's earnings, which does not appear to be expensive at all for a company that not only has achieved rising profitability but has a S$750-million market cap -- sizeable enough to attract fund-buying.
CAO is the largest supplier of jet fuel to the three largest Chinese airlines whose aircraft call at 30 international airports outside China, including locations in Europe, North America, Asia Pacific and Middle East.
CAO proposed a first and final dividend for FY2013 of 2 SG cents a share, or a 2.3% yield on the current stock price. The dividend is unchanged from the year before but it's payable also on the bonus shares (1 bonus share for 5 CAO shares) issued recently.
A recent dampener on investor sentiment could be its 4Q2013 result: Net profit fell 25.7% to US$13.5 million, largely due to a 39% fall in contribution from associates.
'via Blog this'
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