SING HOLDINGS: Poised to turn around in 2015/16, deliver higher dividends

Excerpts from analyst's report

RHB Research analyst: Goh Han Peng

RobinR10.14c Robin Residences on Robin Road near the upcoming Stevens MRT station. NextInsight file photo.Sing Holdings (SING SP) is a niche developer focused on residential and commercial developments in Singapore.

The group’s past projects include residential projects such as Meyer Residence, BelleRive and The Laurels, as well as industrial and commercial buildings such as BizTech Centre along Aljunied Road, EastGate in the East Coast area and Ocean Towers, an award-winning Grade-A office in Shanghai.

After successfully completing the Laurels in 2013, the group replenished its landbank with two sites: 1) Waterwoods, an EC development at the junction of Punggol Field Walk and Punggol East; 2) Robin Residences, an upmarket residential project along Bukit Timah/Robin Road.

Sales at Waterwoods has progressed well with 91% of the project sold at an average ASP of SGD800 psf, with contract value amounting to SGD338m. The group expects to obtain T.O.P. of the project by end 2015, which will bolster net profit as profit recognition for EC project are based on completion basis.

LeeSzeHao2 Lee Sze Hao, CEO of Sing Holdings. NextInsight file photo.Meanwhile, the group expects Robin Residences, currently 30% sold at a price range of SGD2300-2450 psf, to obtain T.O.P. by 1Q16, in time to catch the opening of the Stevens MRT station on the Downtown Line. Given the site attributes, management is confident that the project would do well and generate healthy margins.

After a loss recorded in 2014 due to minimal profit recognition from residential projects, Sing Holdings is poised to turn around in 2015/16 as profit streams in from its existing projects. Management intends to rewards shareholders with higher dividend payouts as its earnings improve.

At SGD0.34, the stock is trading at a 51% discount to its RNAV of SGD0.69/share.

Counter Name	Last	Change
AEM Holdings	2.290	-0.070
Best World	2.460	0.020
Boustead Singapore	0.945	-0.015
Broadway Ind	0.125	-0.003
China Aviation Oil (S)	0.905	-0.005
China Sunsine	0.400	-0.010
ComfortDelGro	1.450	-0.010
Delfi Limited	0.895	-0.005
Food Empire	1.280	-0.040
Fortress Minerals	0.305	-0.015
Geo Energy Res	0.300	-0.005
Hong Leong Finance	2.480	-0.010
Hongkong Land (USD)	2.830	-0.020
InnoTek	0.520	-0.015
ISDN Holdings	0.300	0.005
ISOTeam	0.042	-0.001
IX Biopharma	0.040	-0.005
KSH Holdings	0.255	0.005
Leader Env	0.050	-
Ley Choon	0.044	0.001
Marco Polo Marine	0.067	-0.002
Mermaid Maritime	0.136	-0.003
Nordic Group	0.310	-0.005
Oxley Holdings	0.089	-
REX International	0.138	0.003
Riverstone	0.790	-0.005
Southern Alliance Mining	0.445	-
Straco Corp.	0.495	0.010
Sunpower Group	0.205	-0.005
The Trendlines	0.069	-
Totm Technologies	0.022	-
Uni-Asia Group	0.825	-
Wilmar Intl	3.400	0.020
Yangzijiang Shipbldg	1.740	-0.030

Counter Name

Last

Change

AEM Holdings

2.290

-0.070

Best World

2.460

0.020

Boustead Singapore

0.945

-0.015