From Kevin Scully, NRA Capital on 22nd Feb.

SING HOLDINGS reported its full year FY2012 results on 13 February 2013. I am only now writing a commentary as I wanted to have a word with management about the plans for their two projects in Robin and Punggol.

Key highlights in the results are:

a) revenue in 2012 rose 94% to S$290.4mn

b) net profit in 2012 rose 96% to $56.7mn

c) EPS for 2012 is 10.2 cents while its NAV per share as at Dec 31, 2012 was 50.7 cents

d) company has declared a final dividend of 1 cent and a bonus dividend of 0.6 cents

e) gearing ratio is 1.1 times

f) the 2012 performance can be largely attributed to a 41% recognition of the Laurels

g) Sing Holdings expects to recognise the balance of the Laurels in 2013.

Commentary

I added Sing Holdings to my Stock Picks in February 2010 and had estimated then that its NAV per share would be $0.66.  Its taken almost three years for the market to recognise this value as Sing progressively recognises the profits from Laurels.    The balance 30% of Laurels will be recognised in 2013.  Beyond that Sing Holdings will have to rely on its two landbanks in Robin and its recently announced EC project in Punggol to drive earnings and NAV. I am happy about the increase in total dividend for 2012 to 1.6 cents but informed management that they could and should have paid more - say 2 cents to give shareholders a yield of above 5%.  Investors should also note that the major shareholder has been buying its own shares since the FY2012 results release. I still like Sing Holdings and it remains a Stock Pick.  I have however raised my price target even higher because of its two new landbanks.  Look up my Stock Picks section for my new and higher price target.