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	2.360	0.010
Best World	2.470	0.010
Boustead Singapore	0.965	0.005
Broadway Ind	0.129	0.001
China Aviation Oil (S)	0.920	0.015
China Sunsine	0.415	0.005
ComfortDelGro	1.500	0.010
Delfi Limited	0.905	0.005
Food Empire	1.270	0.020
Fortress Minerals	0.310	-
Geo Energy Res	0.310	-
Hong Leong Finance	2.490	-0.010
Hongkong Land (USD)	3.070	0.040
InnoTek	0.525	-
ISDN Holdings	0.310	0.005
ISOTeam	0.041	-0.002
IX Biopharma	0.043	-
KSH Holdings	0.250	-
Leader Env	0.051	0.001
Ley Choon	0.046	0.003
Marco Polo Marine	0.066	0.001
Mermaid Maritime	0.141	0.003
Nordic Group	0.340	-
Oxley Holdings	0.089	-
REX International	0.137	0.001
Riverstone	0.820	0.020
Southern Alliance Mining	0.445	0.015
Straco Corp.	0.500	0.010
Sunpower Group	0.210	0.010
The Trendlines	0.069	-
Totm Technologies	0.022	-
Uni-Asia Group	0.825	-0.010
Wilmar Intl	3.480	0.030
Yangzijiang Shipbldg	1.780	0.060

Counter Name

Last

Change

AEM Holdings

2.360

0.010

Best World

2.470

0.010

Boustead Singapore

0.965

0.005