Excerpts from OSK-DMG report released this morning

OSK-DMG analyst: Goh Han Peng

THE CORPORATE reporting season is currently in full swing. We screen through the listed companies and flag some companies that are poised to do well, with prospects for higher dividend payouts.

Sing Holdings, a niche developer focused on the mid-to-high end residential market, does not have an official dividend policy but management intends to pay dividends that are in line with earnings.

On all indications, FY12 is likely to be a record year for the company as it progressively recognized earnings from its highly successful Laurels project.

As of 9M2012, net profit came in at $27.3m, exceeding the S$22m for the whole of FY11.

Hiap Hoe & sister company Superbowl have 2 new hotels (Ramada Hotel and Days Hotel) at Zhongshan Park in Balestier.
NextInsight file photo

On our estimates of S$38m net profit for FY12, and assuming a payout similar to last year (18%), the company could raise its payout to 1.5-2.0 cents/share for FY12, representing a 50-100% hike in dividends.

Hiap Hoe
, another niche property developer, has been conserving its cash over the last few years as it entered a high-capex phase with several on-going projects, including the hotel-cum-commercial development at Zhongshan Park.

We expect cash-generation to improve going forward as these projects near completion or have already been completed.

With higher core earnings virtually in the bag (9M12 net profit of S$44m close to matching FY11’s full year net profit of $46.6m), the company could hike its dividend payment from 0.5cts/share in FY11 to 1-1.5cts/share for FY12.

Pan United Corporation, Singapore’s largest cement and ready-mix concrete supplier, is another candidate that is likely to raise its dividend payout for FY12 (FY11: 3.5cts/share) as core earnings rebounded across its 3 divisions of shipping, port & logistics and building materials.

9M12 net profit of S$34.3m already exceeded FY11’s full year earnings of S$30m, and with rising free cash flows, we estimate dividends of 4-4.5 cts/share for FY12. 

Recent stories: 

First hotel of HIAP HOE & SUPERBOWL opens in Balestier 

SING HOLDINGS a value trap? 

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#1 Sing_Sing 2013-02-13 15:28
Timely article! Sing Holdings has announced a $41.1 m net profit, exceeding Goh Han Peng's forecast of $38 m.

Final dividend is 1 ct + 0.6 ct special = 1.6 cent a share. Big jump compared to 1 ct last year. But div yield is only so-so, even for me who bought stock at average of 35 cents a year ago. It's the capital gain that makes me smile :-) More to come, I hope

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