LAST CLOSE: S$0.48
FAIR VALUE: S$0.56
• 1H results in line. For 1HFY2013, Sing Holdings registered S$26.0mil of PATMI, largely in‐line with our estimates of S$24.1mil. The earnings relate mainly to the progressive recognition of proceeds from the sale of The Laurels. The cumulative percentage recognised till 1HFY13 is 96%. Based on contracted sales of 98%, we expect Sing Holdings to recognise the remaining estimated S$27.6mil worth of revenues and S$4.2mil PATMI relating to this project in 2HFY13.
• Lumpy earnings recognition from property development in 2HFY13. As the bulk of recognition has been done for The Laurels project, there would be minimal earnings recognition from property development in 2HFY13. We expect 3Q to register a very slight profit on the remaining
recognition of The Laurels project, and 4Q to be lossmaking.
• Other launches are on track. The EC project at Punggol Field Walk / Punggol East will be launched in Sep 2013, and any sales and corresponding costs on the project will only be recognised in late FY15/early FY16 upon project completion. The high‐end private condominium project located at Robin Drive / Robin Road will only be launched in mid‐2014, and will be the sole driver of property development earnings in FY14.
• Bidding for EC sites to continue. Sing Holdings bidded for the EC sites at Punggol Central / Edgedale Plains and Yuan Ching / Tao Ching Road along with its JV partner UE E&C, and came in 6th for both. EC projects will continue to be their focus.
• Maintain BUY with fair value of S$0.56. We value Sing Holdings at 40% discount to RNAV estimates of S$0.93, deriving a fair value of S$0.56. At last close of S$0.48, Sing Holdings presents ~19% total upside potential inclusive of a dividend yield of 2.1%.
Publish date: 02/08/13