Tuan Sing    Last:0.245   -

Tuan Sing's growth strategy

Tuan Sing is a straightforward case study of an asset play which is composed of easy-to-value and hard-to-defraud assets. As of 29 Oct 2010, it has a market capitalization of SGD281m. After divesting one of its investment property (Kallang Mall), it has a massive cash hoard of SGD207m which is >70% of the market capitalization. This cash cushion allows one to sleep well even if the 2008 credit crisis returns.

On top of this cushion, its crown jewels are the investment properties like Robinson Towers, International Factors Building which are worth SGD261.65m. These properties are in located Singapore. You can physically see and touch these assets. There is no room for fraud.

Its subsidiaries consist of companies like Gultech and SP Corp which are publicly listed on the Singapore exchange. You can obtain the asset values of these listed companies on a real-time basis.

Below is a breakdown of the assets backing this company worth SGD281m. Assets like inventories, intangibles, plant and equipment whose value will be deeply marked down in the event of liquidation are ignored (assigned a value of zero). To provide for a comfortable margin of error, we shall halve the value of assets whose values cannot be ascertained with comfortable certainty like cash and marketable securities. This is the reason why certain asset values will look significantly lesser than what is stated on the latest balance sheet (2010Q3)

Cash holdings: SGD207m
Subsidiaries: SGD157m
Investment properties: SGD262m
Trade and other receivables: SGD26m
Development properties: SGD55m
Total assets: SGD707m

Total liabilities: SGD281m

Liquidation value = Total assets (conservatively estimated) - Total liabilties = SGD426m

The market cap of SGD281m is only 48.6% of the conservatively estimated liquidation value. This is adequate margin of safety for a risk-averse investor like me.

For a good asset play, the assets alone should already provide adequate backing for the price you are paying. Therefore, as long as there are no future losses, it is okay for the asset play to have no future profits. Zero profit growth will not endanger the margin of safety. Any profit growth is viewed as a desirable bonus.

Tuan Sing's profit growth in 2009 and 1st 9 months of 2010 is a big bonus. Profit in 2009 is more than 16 times higher than 2008 (actually an indication of how bad 2008 was, not how good 2009 was). 2009 earnings were good enough to reduce the PE ratio down to a only 6.1

For the first 9 months of 2010, profit grew 53% compared to same period in the previous year. Last quarter earnings were disappointing. Again, earnings growth is not a major consideration for asset plays. Of course, profits are always good to have.

Dissenting views are most welcome.

 

I like your style. Keep the top cream for other to eat. Play safe. 

Hulumas      ( Date: 22-Dec-2010 09:45) Posted: Price is too high, I start selling! hesperus      ( Date: 22-Dec-2010 09:43) Posted: it's undervalued all along.. hopefully it'll shoot up like Gallant Ventures..

 

This is not the first time BT has said it is undervalued.

Everytime this type of article is published the stock surges and lapses in a few days time. BEWARE.

MAKE HAY WHILE THE SUN SHINES.

Cheers.

 

Price is too high, I start selling!

hesperus      ( Date: 22-Dec-2010 09:43) Posted: it's undervalued all along.. hopefully it'll shoot up like Gallant Ventures..

 

it's undervalued all along.. hopefully it'll shoot up like Gallant Ventures..

 

Business Times today says it's undervalued...

 

what's the news? how come so active today?

 

is it gonna be bullish?

 

FYI. see sgx.

Tuan Sing Holdings Limited (“Tuan Sing”) is pleased to announce that its wholly-owned subsidiary, Asplenium Land Pte. Ltd., has today been awarded the tender for a 99-year leasehold land parcel located at Seletar Road, Singapore by the Urban Redevelopment Authority at the price of S$123 million. 

 

sell now?

Jackpot2010      ( Date: 16-Dec-2010 12:32) Posted: overpaid for Serene House en-bloc sales @1.4k psfppr. Not much meat left after construction cost. Assuming const cost of $600psf, break-even is $2k psf. Marina Bay area offers better value for money.

 

overpaid for Serene House en-bloc sales @1.4k psfppr. Not much meat left after construction cost. Assuming const cost of $600psf, break-even is $2k psf. Marina Bay area offers better value for money.

 

Tuan Sing +6.4%; More land acquisition success

WRITTEN BY DOW JONES & CO, INC

THURSDAY, 16 DECEMBER 2010 11:21

Tuan Sing (T24.SG) is +6.4% at $0.25 as the property group's land acquisition bid gains momentum. It has won a tender with a $99.1 million bid for the collective sale of a Singapore property, Serene House, for redevelopment into a luxury residence. This comes a day after it emerged as the highest bidder for a residential land parcel with a $123 million offer. Still, the stock trades at only 0.55x P/B, one of the lowest for Singapore developers. Kim Eng says Tuan Sing's Singapore office portfolio, comprising Robinson Towers and the International Factors Building, has also been overlooked by investors, especially with the government reviewing the land-use zoning of CBD sites to preempt a tight supply of office space "The rejuvenation of Tuan Sing's ageing office towers can unlock value even if it is unable to convert them into residential apartments for sale." Resistance is at the $0.265 52-week high.

 

Tuan Sing Holdings (TSH SP, $0.235, NOT RATED) – Tuan Sing is a diversified property group which owns a cluster of prime commercial buildings in the heart of Singapore’s financial district and two five-star hotels in Australia with value waiting to be unlocked. It surprised the market this week by winning the bid for a private residential site at Seletar and Serene House. Trading at just 0.5x NTA, the stock is deeply undervalued.

/kim eng/

 

 

Tuan Sing wins tender for Serene House with $99m bid

WRITTEN BY THE EDGE

WEDNESDAY, 15 DECEMBER 2010 18:55

Tuan Sing Holdings says indirect wholly-owned subsidiary, Shelford Properties, has been awarded the tender for Serene House at $99.1 million. The property, situated along Cluny Park Road, is directly opposite the proposed Botanic Gardens MRT station and the Singapore Botanic Gardens. This exclusive site is also in the vicinity of schools such as Raffles Girls’ Primary School, Nanyang Primary School, Singapore Chinese Girls’ Primary School, Anglo-Chinese School and Hwa Chong Institution. The freehold property has an site area of 39,828 sq ft and a total land area would add to about 49,021 sq ft. With a plot ratio of 1.4, the price of $99.1 million would translate to $1,388 per sq ft per plot ratio, including a 10% balcony area. Tuan Sing intends to develop an ultra-luxurious project for this exclusive freehold site. The acquisition and development of the project will be financed partly by internal funds and partly by bank borrowings.   /theedgesingapore/ /i came i read i posted for your reading pleasure/

 

Just to Share... I feel its time for it to break free!!

Singapore, 14 December 2010 – Tuan Sing is pleased to announce that the Group, through its wholly-owned subsidiary, Asplenium Land Pte. Ltd., has submitted the highest bid of S$123 million for a 99-year leasehold land parcel located at Seletar Road (off Yio Chu Kang Road) pursuant to an invitation for tender by the Urban Redevelopment Authority (“URA”). If the site is awarded to the Group, the land will be developed as a residential development for sale.

The subject site with a land area of approximately 17,455 square meters, is located within the established Seletar Hills private estate, close to the future Seletar Aerospace Park, easy access via the CTE and TPE, and near MRT station at Sengkang. 

 

ya lor...maybe it's still undiscovered right now..

 

they reported such a strong earning but the share px wont move.. ..

 

tuan sing currently has a cash per share of 19c!

and next year they are going to divest pan west.. $$$~

their grand hyatt in australia are soon bringing in $ as well..

this counter definitely has more upside..

 

Div only 0.3c per share amounts to only 3,413,000 out of the profit of 42,838,000, i.e div is less than 8% of the profit !

 

( 'o') ( 'o') ( 'o')( 'o') ( 'o') ( 'o')( 'o')( 'o') WoW  +1776% !!!

TUAN SING HOLDINGS LIMITED

UNAUDITED RESULTS FOR THE FOURTH QUARTER AND FULL YEAR ENDED 31 DECEMBER 2009

$’000
FULL YEAR

Profit for the year     $42,838   +1776% !!!

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_C40CAF74EC393DA7482576C1003409F3/$file/TBA-100205-ResultsAnnouncementFY09.pdf?openelement