LKH Sp
Construction boom! go for this!
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1-20 of 29
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| 05-02-2007 |
Singapore Hot Stocks-Property stocks |
| SINGAPORE, Feb 5 (Reuters) - Property stocks may be in investors' focus on Monday after local daily The Straits Times reported that new luxury properties in the prime shopping district could hit the psychological price barrier of S$3,000 ($1,957) per square foot |
UOBKH's computed its RNAV of $2.04 before recent purchase of Minton Rise (@ Lorong Ah Soo on 1 Feb 07 that was a sizeable 1.32m sf of gross floor area.
Because of its low acquisition cost of $237psf ppr, DMG & Partners commented that this project would reaped total profit of $40m - thus LKHSp 40% share = $16m or $0.13 per share. Hence revised RNAV up = $2.17.
ESTABLISHMENT OF AN ASSOCIATED COMPANY
____________________________________________________________________
The Board of Directors of Low Keng Huat (Singapore) Limited (?LKH? or the ?Company?) is
pleased to announce that the Company, together with its joint-venture partner, Kheng Venture
Pte Ltd (?KV?), will, through a joint venture company, Peak Garden Pte Ltd (?PG?), be acquiring
the property known as Minton Rise Condominium at 146 to 153 Hougang Street 11, Singapore
(the ?Property?), details of which are as follows:
(i) Purchase Price : S$209,000,000 (which is equivalent to approximately
S$237 per square foot per plot ratio inclusive of
estimated development charge)
(ii) Tenure : 100-year leasehold (commencing from 1 March 1985)
(iii) Land Area : approximately 472,379 square feet
(iv) Plot Ratio : 2.8
(v) Permissible Gross Floor Area : approximately 1,322,660 square feet
The sale and purchase shall be subject to certain conditions, including the approval of the Strata
Titles Board, being fulfilled. Completion of the sale and purchase shall take place within three
months from the date of the sale and purchase agreement or approval of the Strata Titles Board,
whichever is later.
PG shall pay a deposit 10% of the Purchase Price upon signing the sale and purchase
agreement. The remaining 90% of the Purchase Price shall be paid on completion of the sale
and purchase of the Property.
PG?s proposed ordinary share capital is S$1,000,000 which will be subscribed by LKH and KV in
the proportion of 40:60. PG is therefore an associated company of LKH. The purchase and
subsequent redevelopment of the Property by PG will be financed by internal funds and bank
borrowings. The acquisition is not expected to have a material impact on LKH group?s net
tangible assets or earnings per share for the financial year ending 31 January 2008.
To the best of the Directors' knowledge, none of the Directors or controlling shareholders of the
Company has any interest, direct or indirect, in the above transaction save for their shareholding
in the Company.
BY ORDER OF THE BOARD
Low Keng Boon
Managing Director
1st February 2007
Low Keng Huat (Singapore) Limited
Ya, moving closer to its RNAV of $2.04 soon!
| BY : UOB KAYHIAN RESEARCH - 9 Jan 2007 |
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| LKH is trading at a discount to our RNAV/share of S$2.04/ share. |
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| Our RNAV estimate is derived using the following: |
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| 1) DCF of development profits at a 12.12% discount, |
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| 2) Revaluation of hotel assets in Perth, Australia and Ho Chi Minh, Vietnam, |
| 3) Revaluation of tenanted office space at Parkway Parade, |
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| 4) Revaluation of investment properties (apartments in Selangor, West |
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| Malaysia), and |
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| 5) Revaluation of KL landbank. |
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(S$m) |
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| Market Value of Duxton Hotels, Perth (75%) & Saigon |
84.00 |
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| Market Value of tenanted Parkway Office Properties |
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3.80 |
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| Market Value of Investment Properties (apartments in Selangor) |
2.52 |
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| Market Value of KL Landbank |
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3.56 |
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| Less Book Value of Duxton Hotels, Perth (75%) & Saigon |
(40.96) |
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| Less Book Value of Tenanted Parkway Office Properties |
(3.02) |
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| Less Book Value of Investment Properties (Apts in Selangor) |
(1.92) |
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| Less Book Value of KL Landbank |
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(3.44) |
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| (1) Surplus/ (Deficit) to Book |
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44.54 |
| (2) NPV of Residential Development Profits |
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| Twin Regency @ Kim Tian Road |
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2.40 |
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| Domain 21 @ Delta Road |
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5.54 |
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| Regency Suites @ Kim Tian Road |
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2.82 |
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| Southbank @ North Bridge Road |
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6.54 |
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| One-North Residences @ Buona Vista |
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3.96 |
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| Duchess Walk |
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3.81 |
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25.07 |
| (3) Net Book Value End FY06 |
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181.02 |
| RNAV (=1+2+3) |
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250.63 |
| Fully Diluted Number of Shares (m) |
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123.14 |
| RNAV/Share (S$) 2.04 |
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2.04 |
Looks to be on a slow uptrend
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| 01-02-2007 |
Singapore Hot Stocks-Construction stocks jump on sand hopes |
SINGAPORE, Feb 1 (Reuters) - Singapore's Straits Times Index
<.STI> rose 1.19 percent to 3,162.86 points at 0807 GMT.
Stocks and factors to watch:
Construction stocks rallied on hopes that the price of sand
could likely fall to S$20-S$30 per tonne from the current S$40.
The Business Times cited the Singapore Contractors
Association saying that the price of sand would be "fixed by the
government for the next few months" as authorities release sand
from its stockpile beginning Thursday.
Construction and engineering firm Lian Beng Group
jumped as much as 15.3 percent to S$0.34.
BBR Holdings rose as much as 7.1 percent to S$0.15
while CSC Holdings went up as much as 6 percent to
S$0.265.
Yongnam Holdings , which makes foundation work using
steel, rose 4.8 percent to S$0.22.
All four stocks were actively traded, with Lian Beng, CSC and
Yongnam dominating the volume chart in the broader market.
0806 GMT |
Don't panic ! Prices recovering....
|
| 26-01-2007 |
UPDATE 1-Singapore's home prices rise 3.8% in Q4 |
(Updates with details)
SINGAPORE, Jan 26 (Reuters) - Singapore home prices rose 3.8
percent in the last three months of 2006, the 11th quarter in a
row and the third year of successive gains, final figures from
the government's real estate planning agency showed on Friday.
The gains were strongest for private apartments in
Singapore's prime districts which rose 4.9 percent in the last
three months of 2006 and 17 percent in the whole year.
For the first time ever, the Urban Redevelopment Authority
(URA) provided a breakdown of property price changes by
district, which showed that the city-state's real estate market
recovery has been led largely by luxury developments in prime
locations.
A few such developments have sold at prices last seen in
1996 but resale prices for public housing flats -- where 83
percent of Singaporeans live -- have remained flat.
The overall price index for private homes rose to 130.2
points in the fourth quarter last year, from 125.4 points in the
July-September period.
The fourth-quarter gain follows a 2.7 percent increase in
the July-September period. The index expanded by 10.2 percent
for the whole of 2006, compared to 3.9 percent the previous
year.
Reflecting the strong response to recent residential
property launches by developers such as City Developments Ltd.
and CapitaLand Ltd. , prices of uncompleted
apartments rose 25.4 percent for the whole of 2006.
The URA's property price index is widely watched by
Singapore property firms such as Allgreen Properties Ltd.
and Keppel Land Ltd. .
((Editing by Sara Webb; sebastian.tong@reuters.com; Reuters
Messaging: sebastian.tong.reuters.com@reuters.net; +65
6870-3843))
Keywords: PROPERTY SINGAPORE/ |
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| 23-01-2007 |
S'pore sees building contracts of S$17-S$19 bln in '07 |
By Wee Sui Lee
SINGAPORE, Jan 23 (Reuters) - Singapore's government expects
about S$17-S$19 billion ($11-$12.4 billion) in construction
contracts to be awarded this year -- well below its 1997 peak --
as the building sector continues its recovery.
The Building and Construction Authority (BCA) said that an
estimated S$16.1 billion of construction contracts were awarded
in 2006, up 40.8 percent from the previous year but still well
below the record S$24 billion in 1997.
Singapore's construction sector has been crippled by two
recessions in the past decade.
However, activity picked up in the third quarter of 2006,
thanks to a surge in demand for private housing, the extension of
the city-state's underground subway, and big-ticket projects such
as a new financial centre and two casinos.
"The growth momentum of local construction demand last year
is expected to extend to this year amid several mega projects in
the pipeline," said BCA director Tan Yong Keh at a construction
seminar on Tuesday.
"The anticipated significant upturn in construction
activities will inevitably lead to a more intense demand pressure
on labour inputs, materials, and equipment."
The development of the casinos, which together are slated to
cost at least US$6 billion, and the financial centre are expected
to push commercial construction demand to a record high of
between S$3.3-S$3.6 billion in 2007, Tan said.
Singapore's long-ailing construction sector last year had its
first year of positive growth since 2000, rising 1.1 percent in
2006 over the previous year, according to the government's
advance GDP estimates released earlier this month.
Construction GDP growth "is projected to remain in the
positive territory in 2007 in view of the stronger construction
demands in these two years," Tan said.
He added that the sector's contribution to national GDP is
projected to stabilise at around 3 percent.
((Reporting by Wee Sui Lee, editing by Sara Webb;
suilee.wee@reuters.com, Reuters Messaging;
suilee.wee.reuters.com@reuters.net; +65 6870-3904))
($1=1.538 Singapore Dollar)
Keywords: SINGAPORE CONSTRUCTION/ |
Normal Correction. Strong up-side for past few sessions.
Hitting roadblock @ 1.64... sign!
BT reported construction firms securing more contracts...
looks like LKH is gonna push for $2!..woohoo!..
Anyone still holding on to this baby?
Reading between the lines of UOBKH report, it seems the special div is a done deal, even if it is $0.60 it will take the price way over $2.04 (target price). Very good support on Monday - high vol. & > 76% done at sellers' quote. Cheers to all LKHSp supporters.
UOBKH report on S.44 tax credit.
"S$35m in Section 44 credit account: Potential for special dividend. Management has indicated that LKH has some S$35m remaining in its Section 44 account. This means LKH could distribute a special dividend of up to S$1.40 provided it is able to raise an additional S$140m in order to use its Section 44 credits. LKH could do a rights issue, increase its borrowings, or use a combination of both."
My comments: Maximum special div of $1.40 per share is correct but due to balance in Retained Earnings of only $70m+, the special div is restricted to about $0.60 per share which is good enough (if declared).
Wow! 3 days in a roll - persistent buyers supporting price @ 1.51. Hv been watching this 1 for over a yr & haven't seen anything like this before. Today, >70% traded @ sellers quote, very bullish.
UOBKY is buying so that they can offload when small investor swamp in.. beware.
this share is gonna shoot to the moon!
sit on it!
Hi tuntan8888,
Pls refer to tony8888 posting on 11 Jan 10.09.
"Low Keng Huat (BUY/S$1.19/Target: S$2.04). Historically the most active general contractor in the commercial segment. Has transformed itself into an IPD through partnerships with other property developers. Strong balance sheet with no long-term debt. Key projects: Domain 21 (Delta), Regency Suites (Kim Tian). "
Thankie..the recent surge in price is probably due to uob's recent report. Hope it will continue to surge!! :-))
Hi nextdoor,
This counter has inconsistent volumes... but in the recent past few days, there were large volumes and price increases. Very bullish sign.
singaporegal need you to do some 'fortune telling' for this lovely baby....:-)
Wow ! 2 days consecutive high vol. & break multi-yr high of $1.42 today. Must be some big announcement forthcoming - either a big building contract (of IR?) or the S.44 dividend (of $0.60 each?), don't think it is due to UOBKH report (can't find, if anyone has it pl attached).
