ShareJunction - Member Posts

x 0

Yes, AEM will be heading up..

Joe1354 ( Date: 22-Jan-2021 07:37) Posted:

Woah, intel made a strong comeback with a great ER, thr future looks less gloomy now.

x 0

This is akin to ' there' s a lot of work to be done and it' s W.I.P' or " we are working on it" :)

WBdisciple ( Date: 22-Jan-2021 07:38) Posted:

CDL expects ' material impairment loss' on investment in Sincere Property

CITY Developments Limited (CDL) is expecting to make provisions for a material impairment loss on its investment in Sincere Property, given the " ongoing unprecedented challenges" facing China' s real estate market, the mainboard-listed company said on Thursday.

This is based on a review by CDL' s appointed external financial advisor Deloitte, which was asked to evaluate its 51-per-cent joint venture equity investment in Sincere Property, the property developer said in a profit guidance for the full year ended Dec 31, 2020.

The findings of the review by Deloitte have been calibrated with the preliminary findings from the audit of Sincere Property as at April 30, 2020 by KPMG, and the draft purchase price allocation exercise undertaken, CDL said.

CDL said it is finalising the completion of the audit of Sincere Property.

" The final quantum of impairment cannot be determined as yet, as the Group is in the process of restructuring some assets and the situation remains fluid," it said.

Details of the group' s financial performance will be disclosed when the company announces its financial results for financial year 2020, it added.

The group' s total investment in Sincere Property stood at S$1.8 billion as at Dec 31, 2020. It added that it has not provided any further liquidity support or corporate guarantees to Sincere Property since.

Apart from challenges arising from the pandemic, CDL said China' s " three red-lines" rule - which restricts bank borrowing for real estate firms - is expected to have significant impact on all Chinese developers.

" The deterioration in market conditions, ongoing uncertainty and regulatory restrictions have disrupted and negatively impacted Sincere Property' s operations and performance in the near-term," CDL said.

" Furthermore, poor market conditions have derailed the intended divestment plan for some of Sincere Property' s retail and hospitality portfolio to reduce its debt, exacerbating the liquidity challenge it currently faces," it added.

CDL noted that it announced on Jan 4 the formation of a special working group to directly oversee and improve Sincere Property' s liquidity and profitability, including reviewing potential divestments of assets and restructuring existing liabilities while limiting any additional financial exposure to the group.

It said it has " ring-fenced" its current financial exposure to this investment and will continue to " strenuously" protect its position.

CDL' s net gearing ratio, factoring in revaluation surplus from investment properties, stood at 52 per cent as at Sept 30, 2020, the company said, adding that it has strong cash reserves of S$3.3 billion.

It also maintains a strong liquidity position comprising cash and available undrawn committed bank facilities totalling S$4.7 billion, it said. Its debt expiry profile remains healthy, with total gross borrowings at a weighted average debt expiry of 2.4 years.

CDL said there are no material concerns over its ability to fulfil its near-term debt obligations. However, it advised shareholders and potential investors to exercise caution when dealing or trading in the securities of the company.

x 0

Yes bro. There are many counters you can pick and choose from, in this pandemic..TG, ifast, Wilmar, Hi-P etc..Again, best of luck in your investments :)

hokpin ( Date: 22-Jan-2021 08:14) Posted:

Thanks. Bro. I like your words. Patience is key while waiting is free... :)
Either previous medical stock or recent economic recovery stock are the opportunities at once in a decades. :)

tongphlp ( Date: 22-Jan-2021 08:09) Posted:

Yes, anything in the LT horizon should be ok..Good luck bro.
I' m also in the q waiting for $6 :) Patience is key while waiting is free..

x 0

Yes, anything in the LT horizon should be ok..Good luck bro.
I' m also in the q waiting for $6 :) Patience is key while waiting is free...

hokpin ( Date: 22-Jan-2021 08:03) Posted:

Bro, broker still gives CDL a Target Price at SGD 11. Let' s monitor and see how. See if can pick durina at SGD 6+
https://www.theedgesingapore.com/capital/brokers-calls/buy-cdl-and-wing-tai-holdings-authorities-keep-close-watch-residential-market

tongphlp ( Date: 22-Jan-2021 07:54) Posted:

Bro, it' s anybody' s guess...IMHO, CDL' s share price has taken quite a fair beating and at this price range would have already factored in the Sincere issue..It was unfortunate the three Directors' resignation further weakened the share price...DYODD :)

x 0

Bro, it' s anybody' s guess...IMHO, CDL' s share price has taken quite a fair beating and at this price range would have already factored in the Sincere issue..It was unfortunate the three Directors' resignation further weakened the share price...DYODD :))

hokpin ( Date: 22-Jan-2021 07:42) Posted:

@tongphlp, how do you see how much this new will impact the CDL price?

WBdisciple ( Date: 22-Jan-2021 07:38) Posted:

CDL expects ' material impairment loss' on investment in Sincere Property

CITY Developments Limited (CDL) is expecting to make provisions for a material impairment loss on its investment in Sincere Property, given the " ongoing unprecedented challenges" facing China' s real estate market, the mainboard-listed company said on Thursday.

This is based on a review by CDL' s appointed external financial advisor Deloitte, which was asked to evaluate its 51-per-cent joint venture equity investment in Sincere Property, the property developer said in a profit guidance for the full year ended Dec 31, 2020.

The findings of the review by Deloitte have been calibrated with the preliminary findings from the audit of Sincere Property as at April 30, 2020 by KPMG, and the draft purchase price allocation exercise undertaken, CDL said.

CDL said it is finalising the completion of the audit of Sincere Property.

" The final quantum of impairment cannot be determined as yet, as the Group is in the process of restructuring some assets and the situation remains fluid," it said.

Details of the group' s financial performance will be disclosed when the company announces its financial results for financial year 2020, it added.

The group' s total investment in Sincere Property stood at S$1.8 billion as at Dec 31, 2020. It added that it has not provided any further liquidity support or corporate guarantees to Sincere Property since.

Apart from challenges arising from the pandemic, CDL said China' s " three red-lines" rule - which restricts bank borrowing for real estate firms - is expected to have significant impact on all Chinese developers.

" The deterioration in market conditions, ongoing uncertainty and regulatory restrictions have disrupted and negatively impacted Sincere Property' s operations and performance in the near-term," CDL said.

" Furthermore, poor market conditions have derailed the intended divestment plan for some of Sincere Property' s retail and hospitality portfolio to reduce its debt, exacerbating the liquidity challenge it currently faces," it added.

CDL noted that it announced on Jan 4 the formation of a special working group to directly oversee and improve Sincere Property' s liquidity and profitability, including reviewing potential divestments of assets and restructuring existing liabilities while limiting any additional financial exposure to the group.

It said it has " ring-fenced" its current financial exposure to this investment and will continue to " strenuously" protect its position.

CDL' s net gearing ratio, factoring in revaluation surplus from investment properties, stood at 52 per cent as at Sept 30, 2020, the company said, adding that it has strong cash reserves of S$3.3 billion.

It also maintains a strong liquidity position comprising cash and available undrawn committed bank facilities totalling S$4.7 billion, it said. Its debt expiry profile remains healthy, with total gross borrowings at a weighted average debt expiry of 2.4 years.

CDL said there are no material concerns over its ability to fulfil its near-term debt obligations. However, it advised shareholders and potential investors to exercise caution when dealing or trading in the securities of the company.

x 0

Huat ah!

lifeisgood ( Date: 21-Jan-2021 21:48) Posted:

Today is a weak market day for many high flying stocks, but Wilmar closed near all day high. So high chance tmr open gap up high high.

ghetto ( Date: 21-Jan-2021 21:47) Posted:

Yep minimally 6.00...Hope Ah Kuok gives us a very good CNY!

x 0

There' s always good and bad in everything...hence the existence of yin and yang...

SGPhantom ( Date: 21-Jan-2021 22:58) Posted:

I am not sure, I hope you are right.
What I am sure though is that AEM needs to diversify.
Acquiring CEI is a first step, but they need to move into automation and 5G chip testing.
Lets see what else is in their pipeline.

zandlery ( Date: 21-Jan-2021 21:56) Posted:

The shortage does not mean that superficially I believe.
It mean that there are strong demand for chips so require more production thus more testing.
Last year result already shown the revenue on " shortage" status.
To ramp up production mean more business for AEM which lead to higher profi

x 0

could be due to " Global shortage in semiconductor related goods , , memory chips, gpu, 5g , IOT, nano size chips, etc.."

tongphlp ( Date: 21-Jan-2021 16:24) Posted:

strong support to hold, it seems...

tongphlp ( Date: 21-Jan-2021 16:14) Posted:

trending down, it seems.

x 0

strong support to hold, it seems...

tongphlp ( Date: 21-Jan-2021 16:14) Posted:

trending down, it seems..

SGPhantom ( Date: 21-Jan-2021 15:04) Posted:

As usual, dips in the noon.
Hope it is still green at the end of the day.

x 0

trending down, it seems..

SGPhantom ( Date: 21-Jan-2021 15:04) Posted:

As usual, dips in the noon.
Hope it is still green at the end of the day.

x 0

To the MOON

sp71171 ( Date: 21-Jan-2021 09:52) Posted:

first target 4.35, then 5.......

x 0

IMO, things would still be murky until CDL comes out to make it crystal clear....isn' t there a special working committee or taskforce or whatever convened to look into this? Care to share the findings?

pasttime ( Date: 20-Jan-2021 19:01) Posted:

ha ha. one sincere incidents you want to regurgitate for how many x

tongphlp ( Date: 20-Jan-2021 16:56) Posted:

profits from selling residential and commercial projects not enough to cover loss in Sincere

x 0

Rescind contract = lose $$? pay damages..fight it out in court...(badminton or basketball or volleyball :)
Continue with contract = 50-50...may even lose more with no light at the end of the tunnel??
How? Headache!

Sgvale ( Date: 20-Jan-2021 16:17) Posted:

Contract already signed. How not to defend?

lesgha ( Date: 20-Jan-2021 12:10) Posted:

Agreed. Sincre is just one of the setback.with the father behind support and provide guidance, I believe it will overcome it.The current price is attractive. My personal view.

x 0

Yup...don' t play play :)

sp71171 ( Date: 20-Jan-2021 16:38) Posted:

looking fierce,

x 0

million dollar questions : what price? what value?

not_98percent ( Date: 20-Jan-2021 11:17) Posted:

time will tell ....... price is what you pay, value is what you get

tongphlp ( Date: 20-Jan-2021 11:08) Posted:

Others see opportunities...Will Sherman have steady hands and be able to steer CDL towards greater heights?

x 0

Family drama in the making? mm2 can explore money making opportunites?

lesgha ( Date: 20-Jan-2021 12:10) Posted:

Agreed. Sincre is just one of the setback.with the father behind support and provide guidance, I believe it will overcome it.The current price is attractive. My personal view.

x 0

Obviously, the directors who resigned don' t think so...

tongphlp ( Date: 20-Jan-2021 11:08) Posted:

Others see opportunities...Will Sherman have steady hands and be able to steer CDL towards greater heights?

Sgvale ( Date: 20-Jan-2021 09:21) Posted:

All these China 地头蛇 & very experience developers also think not worth the risks.

x 0

can argue : I didn' t see the few zeroes behind...must be quite high...I thought I signed a $10 contact :)

tongphlp ( Date: 20-Jan-2021 16:57) Posted:

unless contract was signed after a few drinks :)

Sgvale ( Date: 20-Jan-2021 16:17) Posted:

Contract already signed. How not to defend?

x 0

it' s always 50-50
if not pass, then fail
if not successful, then fail
if not making $$, then fail
if not good, then it' s bad..

RyanAB ( Date: 20-Jan-2021 11:19) Posted:

....i think also, the local big developers wanted a lower valuhation because they themselves are alr big in china and too much of the same increases their concentration risk. for cdl its a different perspective, this is a diversification and growth strategy for them. china is still the next growth market.
...the unforseen factor was covid19....well....just to have see how it ends up....

tongphlp ( Date: 20-Jan-2021 10:53) Posted:

No wonder the saying " One man' s meat is another man' s poison.."

x 0

abandon ship! run!

FATABA ( Date: 20-Jan-2021 11:21) Posted:

you hit the nail right .....the same point in today papers ....ALL CHINA mainland developers abandoned > > > > > > > > and this City pick up

I guess that tells a lot about this investment.
Sad that so many Spore companies fell victim to this type of JV. ( time will tell )
Dyodd

Sgvale ( Date: 20-Jan-2021 09:21) Posted:

All these China 地头蛇 & very experience developers also think not worth the risks.