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Slowly moving up.
Huge volume of buyers trying to get at lower prices.
Stable yield of more than 5%. 2c dividends for past few years.
Trading CD (cum dividends) today.
At 35c, yield is 2/35 = 5.71%
Stronger contribution from a Malaysian subsidiary lifted Lum Chang Holdings' net profit by 2 per cent to $21.5 million.
Revenue for the year ended June 30 climbed by 75 per cent to $494.6 million.
This was mainly due to the start of revenue recognition for two construction projects, which reported revenues amounting to $125.4 million.
Higher revenue of $39.2 million was also due to the completion of more phases at one of the group's Malaysian development.
Full Year results out
http://infopub.sgx.com/FileOpen/LCH_FullYearFinancialResultsForYearEnded30Jun13.ashx?App=Announcement& FileID=254397
Earnings up 2%.
Final quarter dividend 1.25c
Full year dividend 2c.
Interest rates will eventually go up so there is need to speculate about when or how it will affect.
All companies, regardless of REITS or not, will be affected once i/r increases.
We just need to look for fundamentally strong companies that are strong enough to weather such storms.
In the case of Lum Chang, their cash holdings + free cash flow will be adequate to tide them over any hikes in i/r.
bryancbq ( Date: 25-Aug-2013 21:48) Posted:
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StewardLittle ( Date: 25-Aug-2013 18:25) Posted:
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Lum Chang full year report out next week. Expect the dividend to remain the same as the past few years at 2c (5.8% yield).
Trading at P/E 6.24 and P/B 0.78, seems like a reasonably cheap buy.
ROE consistent with past few years.
Higher levels of gearing this year is due to purchase of freehold building in London. But this will help the company generate rental income and increase revenue for the years to come.
Outstanding book order close to 1billion SGD + Joint Ventures with Frasers Centrepoint + Esparina Residences TOP = No worries for the future till at least 2016.
THIRD QUARTER RESULTS * FINANCIAL STATEMENT AND RELATED ANNOUNCEMENT
http://info.sgx.com/webcorannc.nsf/AnnouncementToday/2E064AE75F5EFA2C48257B6B002EC6E7?opendocument
Excerpt from analyst report of UOB KH:
Lum Chang Holdings (LCH) is trading at 4.9x FY12 PE and 0.8x P/B.
Potential share price catalysts include new contract wins and an attractive forecast dividend yield of 6% in FY13.
Investment Highlights
Good track record.
As a BCA grade ranked A1 contractor, Lum Chang Holdings has an impressive portfolio of past projects, which included Changi Water Reclamation Plant, UOB Plaza I and National University of Singapore. LCH’s established record in civil engineering projects is also evident, being the only local contractor to clinch a MRT Downtown Line project (contract 912 worth over S$450m) on its own. LCH’s recognised construction quality and established track record make it a serious contender for upcoming public construction projects, such as the MRT Thomson Line.
Consistently attractive dividend yield.
LCH has been paying a consistent dividend of 2 cents for the past three years, which translates to an attractive dividend yield of 6.0%. The dividend of 2 cents equates to a payout of 35.6% in FY12. In FY12, LCH generated a free cash flow (FCF)/share of 2.4 cents and a FCF yield of 7.3%.
Steady rental income.
LCH’s recent acquisition of a freehold mixed-use property at 42-60 Kensington High Street in London provides a steady recurring income for the group. Kensington High Street is identified in the London Plan as one of the 35 major centres in London. The prime location of the property allows it to enjoy a 100% occupancy rate and an annual rental income of £1.8m (S$3.4m), that translates to a rental yield of 4.5%. The S$3.4m rental income is about 15% of its FY12 net profit.
Strong balance sheet.
Trading at 0.8x P/B, valuation looks reasonable when compared with peers’ average of 1x P/B. Since FY10, LCH has maintained a net cash position. Its stock price is underpinned by cash reserves of S$77m (as at 31 Dec 12) that represents 62% of its market cap.
Future plans.
With a strong construction orderbook of S$600m and its new executive condominium project at Woodlands (a JV with Fraser Centrepoint) to be launched in Apr 13, LCH’s construction arm is likely to be kept busy till 2016. For its property development business, LCH is looking forward to continue developing its two residential projects in Malaysia where only 50% has been launched todate. LCH is also on the lookout for promising property investment in Asia and London to create additional steady recurring income. Associate LC Development’s hotel operation in London is likely to help LCH in optimising its selection of property investment in the London market.
Lum Chang Holdings Limited on Wednesday posted a 31 per cent year-on-year increase in net profit to $21 million from $16.02 million for the fiscal year ended June 30, 2012.
Turnover rose 48 per cent to $282.89 million from $191.46 million a year ago, attributable to the commencement of revenue contribution from two construction projects, which reported revenues amounting to $118.3 million.
Earnings per share for the year were 5.62 cents, up from 4.22 cents a year ago.
However, the group cut its proposed final dividend to 1.25 cents per share, compared to a first and final dividend of 2.0 cents per share paid out a year ago.
FULL YEAR RESULTS * FINANCIAL STATEMENT AND RELATED ANNOUNCEMENT
http://info.sgx.com/webcorannc.nsf/AnnouncementToday/C16D0C57E3AE8F7648257A6900341451?opendocument
Business Times - 14 Feb 2012 Lum Chang's Q2 net profit up 30%, declares interim dividend By ANGELA TAN Lum Chang Holdings Limited reported on Tuesday that its net profit for the fiscal second quarter ended December 31, 2011 rose 30 per cent from a year ago to S$1.95 million. Revenue rose 97 per cent to S$41.88 million due to the revenue recognition of three construction projects amounting to S$40.7 million. The construction-related group declared an interim dividend of 0.75 cents a share, to be paid on March 14, 2012. No dividend was declared a year ago. |