Keong Hong    Last:0.135   -

low profile KHH to surprise on the upside

Looks like a strong opening

 

Agreed...altho no valuation was performed on the target coy, the acquisition is earnings accretive which is .  58 cents a share also serves as a " lock-in" for vendors as they wud b unlikely to dispose the shares below that px. 

Looking for any px weakness to add

hardwired      ( Date: 22-Apr-2017 06:19) Posted: Very reassuring that the co is valueing the stock at 58.5c and the seller accepts that valuation. Good news indeed! HVRRVH      ( Date: 21-Apr-2017 23:11) Posted: Another acquisition. This time a flooring company which can complement KH's existing business. KH is clearly executing its strategies of having multiple source of recurring income. In this acquisition, what's worth noting is that KH will be paying part of the purchase price (1.5 millions) in shares with each share priced at 58.5 cents. Of course KH shares is not 58.5 cents currently despite the recent run up. In other words, the vendors are willing to accept the shares as they're confident that the price of 58.5 cents is realisable. From investors' standpoint, this is indeed positive.

 

Very reassuring that the co is valueing the stock at 58.5c and the seller accepts that valuation. Good news indeed!

HVRRVH      ( Date: 21-Apr-2017 23:11) Posted: Another acquisition. This time a flooring company which can complement KH's existing business. KH is clearly executing its strategies of having multiple source of recurring income. In this acquisition, what's worth noting is that KH will be paying part of the purchase price (1.5 millions) in shares with each share priced at 58.5 cents. Of course KH shares is not 58.5 cents currently despite the recent run up. In other words, the vendors are willing to accept the shares as they're confident that the price of 58.5 cents is realisable. From investors' standpoint, this is indeed positive.

 

Another acquisition. This time a flooring company which can complement KH's existing business. KH is clearly executing its strategies of having multiple source of recurring income. In this acquisition, what's worth noting is that KH will be paying part of the purchase price (1.5 millions) in shares with each share priced at 58.5 cents. Of course KH shares is not 58.5 cents currently despite the recent run up. In other words, the vendors are willing to accept the shares as they're confident that the price of 58.5 cents is realisable. From investors' standpoint, this is indeed positive.

 

px stamp: last done 51 cents (up 1 cent)...

 

Buyers prevailed after long tussle between buyers and sellers at 47-475 range. May see further consolidation at current price. I am in for long term, standing by to add should price retreat. Just sharing my thoughts.

 

Sold mine at. 5 .thansk for coffee 💰

 

Hold tight

 

Coming liao.. Hold tight

 

With such good things about this counter, matter of time it go up... Heee

 

Well, property sector are shunned by investors sadly.. the popular and overvalue ones are healthcare/food/bev/movie related sectors.. sometimes all this low p/e will make urself qn if their balance sheet are real, and that is how i miss HLS lol..

HVRRVH      ( Date: 15-Apr-2017 10:33) Posted: I regretted vested only from 43.5 cents when it was already in my watch list since mid 30 cents range. It was the low pe that attracted me and after research and research, I still can't figure out why the pe is so low and I kept waiting and waiting. Then, profit increased and dividends increased and price surged. Finally decided to vest after learning the news on their Maldives projects. I conclude that the company is financially sound and has clear plan,that is, to develop recurring income sources on top of existing property development and construction business. I will stay vested for long term especially if the dividend payout is sustainable, which I think it will. nqing87      ( Date: 15-Apr-2017 10:26) Posted: thanks for ur opinions.. i had put $1.4k psf on the conservative side in case i missed out on miscellaneous cost like what u mentioned.. not vested yet, but this seems to be an interesting counter which can be monitored as they have strong equity growth over this few years, with consistently high dividend and a very low p/e..

 

I regretted vested only from 43.5 cents when it was already in my watch list since mid 30 cents range. It was the low pe that attracted me and after research and research, I still can't figure out why the pe is so low and I kept waiting and waiting. Then, profit increased and dividends increased and price surged. Finally decided to vest after learning the news on their Maldives projects. I conclude that the company is financially sound and has clear plan,that is, to develop recurring income sources on top of existing property development and construction business. I will stay vested for long term especially if the dividend payout is sustainable, which I think it will.

nqing87      ( Date: 15-Apr-2017 10:26) Posted: thanks for ur opinions.. i had put $1.4k psf on the conservative side in case i missed out on miscellaneous cost like what u mentioned.. not vested yet, but this seems to be an interesting counter which can be monitored as they have strong equity growth over this few years, with consistently high dividend and a very low p/e..  Morello      ( Date: 15-Apr-2017 07:43) Posted: There are other costs associated with such developments (fees and charges of all sorts, finance costs, etc).  But of course the two lumpy ones are the land and construction costs.  I suspect the selling should be higher than $1.4k psf.  So all in and as a rough ball park, your quoted profit of 180M may not be far off, also for the construction contract.  Profits would be recognised over a number of years due to progressive payments and also unlikely all units would be sold immediately.

 

thanks for ur opinions.. i had put $1.4k psf on the conservative side in case i missed out on miscellaneous cost like what u mentioned.. not vested yet, but this seems to be an interesting counter which can be monitored as they have strong equity growth over this few years, with consistently high dividend and a very low p/e.. 

Morello      ( Date: 15-Apr-2017 07:43) Posted: There are other costs associated with such developments (fees and charges of all sorts, finance costs, etc).  But of course the two lumpy ones are the land and construction costs.  I suspect the selling should be higher than $1.4k psf.  So all in and as a rough ball park, your quoted profit of 180M may not be far off, also for the construction contract.  Profits would be recognised over a number of years due to progressive payments and also unlikely all units would be sold immediately. nqing87      ( Date: 14-Apr-2017 15:17) Posted: i saw that the gross floor area is 67584 sqm.. i suppose this is the total floor area they are selling.. that' s about 727468 sqft.. assuming each sqft sells at $1.4K, that' s about SGD 1.018 billion.. the consortium tender SGD 624mil for this parcel of land.. and Keong Hong awarded SGD 214mil for building this condo.. so that' s about SGD 180mil profit for development.. Keong Hong has 20% share, so they got SGD 36mil for this development.. for the SGD 214mil contract, assume they can get 10% profit on conservative side, so that' s about SGD 21.4mil.. So 21.4 + 36mil = SGD 57.4mil.. dunno what else to factor in or if my calculation is correct.. but if can get around this 57mil profit, then that will be ~24 cents eps.. their past few years FY eps is between 10-15 cents, so that' s quite good profit..

 

There are other costs associated with such developments (fees and charges of all sorts, finance costs, etc).  But of course the two lumpy ones are the land and construction costs.  I suspect the selling should be higher than $1.4k psf.  So all in and as a rough ball park, your quoted profit of 180M may not be far off, also for the construction contract.  Profits would be recognised over a number of years due to progressive payments and also unlikely all units would be sold immediately.

nqing87      ( Date: 14-Apr-2017 15:17) Posted: i saw that the gross floor area is 67584 sqm.. i suppose this is the total floor area they are selling.. that' s about 727468 sqft.. assuming each sqft sells at $1.4K, that' s about SGD 1.018 billion.. the consortium tender SGD 624mil for this parcel of land.. and Keong Hong awarded SGD 214mil for building this condo.. so that' s about SGD 180mil profit for development.. Keong Hong has 20% share, so they got SGD 36mil for this development.. for the SGD 214mil contract, assume they can get 10% profit on conservative side, so that' s about SGD 21.4mil.. So 21.4 + 36mil = SGD 57.4mil.. dunno what else to factor in or if my calculation is correct.. but if can get around this 57mil profit, then that will be ~24 cents eps.. their past few years FY eps is between 10-15 cents, so that' s quite good profit.. Morello      ( Date: 14-Apr-2017 14:25) Posted: Yes, KHH does hold a 20% state in East Vue Pte Ltd.  Apparently (and I wasn' t aware until now), their subsidiary KHC was recently awarded the construction contract for the development as well. For development profit, need to know the break even cost and selling prices to have an idea of potential profits.  Sorry can' t help here.

 

i saw that the gross floor area is 67584 sqm.. i suppose this is the total floor area they are selling.. that' s about 727468 sqft.. assuming each sqft sells at $1.4K, that' s about SGD 1.018 billion.. the consortium tender SGD 624mil for this parcel of land.. and Keong Hong awarded SGD 214mil for building this condo.. so that' s about SGD 180mil profit for development.. Keong Hong has 20% share, so they got SGD 36mil for this development.. for the SGD 214mil contract, assume they can get 10% profit on conservative side, so that' s about SGD 21.4mil.. So 21.4 + 36mil = SGD 57.4mil.. dunno what else to factor in or if my calculation is correct.. but if can get around this 57mil profit, then that will be ~24 cents eps.. their past few years FY eps is between 10-15 cents, so that' s quite good profit..

Morello      ( Date: 14-Apr-2017 14:25) Posted: Yes, KHH does hold a 20% state in East Vue Pte Ltd.  Apparently (and I wasn' t aware until now), their subsidiary KHC was recently awarded the construction contract for the development as well. For development profit, need to know the break even cost and selling prices to have an idea of potential profits.  Sorry can' t help here.

 

Yes, KHH does hold a 20% state in East Vue Pte Ltd.  Apparently (and I wasn' t aware until now), their subsidiary KHC was recently awarded the construction contract for the development as well.

For development profit, need to know the break even cost and selling prices to have an idea of potential profits.  Sorry can' t help here.

 

KH has 20% in term of the condominium JV. On top of that, KH has been awarded the building contract for the JV. The building contract is solely KH's. I am vested.

nqing87      ( Date: 14-Apr-2017 13:11) Posted: http://www.propertyguru.com.sg/property-management-news/2017/4/150248/strong-buyer-interest-in-seaside-residences looks like we can anticipate a full sold out status for this sea residence.. so now comes to calculating how much profit keong hong can get from this, based on 20% share.. will be grateful if anyone who is well verse in calculating property development profit to share your insights..    nqing87      ( Date: 14-Apr-2017 12:39) Posted: wow.. just saw this counter with 7+% sustainable dividend p/e around 3.. as usual, as it is in the unpopular property development sector, it' s undervalue just like many of same sector.. im quite attracted to their upcoming sea residence project with 841 units.. i think they have 20% share in this development.. anyone can share insights regarding this? i think this sea residence is launching this few days and should be quite popular.. who went to their showflat already? is it popular? anyone knows how to calculate their projected profit from this development assuming they manage to sell all the units? anyone knows what is the total floor area that they are selling?

 

http://www.propertyguru.com.sg/property-management-news/2017/4/150248/strong-buyer-interest-in-seaside-residences

looks like we can anticipate a full sold out status for this sea residence.. so now comes to calculating how much profit keong hong can get from this, based on 20% share.. will be grateful if anyone who is well verse in calculating property development profit to share your insights.. 

 

nqing87      ( Date: 14-Apr-2017 12:39) Posted: wow.. just saw this counter with 7+% sustainable dividend p/e around 3.. as usual, as it is in the unpopular property development sector, it' s undervalue just like many of same sector.. im quite attracted to their upcoming sea residence project with 841 units.. i think they have 20% share in this development.. anyone can share insights regarding this? i think this sea residence is launching this few days and should be quite popular.. who went to their showflat already? is it popular? anyone knows how to calculate their projected profit from this development assuming they manage to sell all the units? anyone knows what is the total floor area that they are selling?

 

wow.. just saw this counter with 7+% sustainable dividend p/e around 3.. as usual, as it is in the unpopular property development sector, it' s undervalue just like many of same sector.. im quite attracted to their upcoming sea residence project with 841 units.. i think they have 20% share in this development.. anyone can share insights regarding this? i think this sea residence is launching this few days and should be quite popular.. who went to their showflat already? is it popular? anyone knows how to calculate their projected profit from this development assuming they manage to sell all the units? anyone knows what is the total floor area that they are selling?

 

Happy.... Counter being spotted