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Just visited their web site. Carabelle is 100% sold. I think it's good news wonder y is not publish.
or did i miss it. I am vested in this stock.
Hi all, can please advise the potential of this counter. Been sleeping and now .605 cents. Is it good to grab some? Property developments though not in the most desirable spots but should be alright given the hot property market thats not about to cool down in the near term. Why the counter went down? Thanks for your take.
Hey, Iam curious. Why is it down 47%? Ex-bonus (1 for 1) is something good or bad? Now, SimLian looks attractive to go in.
This type of 1-for-1 games is old trick, the more you sink in the more you got stuck. Therefore, be careful and eventually after ex-whatsoever, it go back to square one ! You will stuck more. Take care.
No panic. It is trading ex-bonus (1-for-1) and ex-div of 2 cents. Taking into account the bonus shares and dividend, it is unchanged. _
Sim Lian down 47% today!!!
It rose to an all-time high after a shareholders meeting approved a one-for-one bonus shares issue.
Dealers said some investors were trying to accumulate the stock before it goes ex-bonus on Wednesday.
Several small- and medium-sized construction companies have seen their shares rise in recent sessions on hopes that Singapore's two planned multi-billion dollar casinos would result in building contracts for local firms as well and improve their earnings.
It expects to generate most of its revenue from property development within five years, as it roughly doubles the number of individual homes it builds.
Diana Kuik, executive director of Sim Lian Land -- the firm's property development arm -- told Reuters in an interview that the company hopes to develop 500 units of private residential property annually within five years, up from the current 200 to 300 units. The firm is also branching out into neighbouring Malaysia.
"When we listed in 2000, we felt a real need to broaden our revenue stream and not just rely on construction," said Kuik, the daughter of company founder Kuik Ah Han. "At that point, we decided to capitalise on our in-house construction expertise and move up the real-estate value chain."
The Kuik family controls 75% of the company's stock. With a market value of US$131m, Sim Lian is a small player, but it is one of the few property developers with construction capabilities. The firm expects to derive 70% of revenues from property development by 2011, from 56% now.
Sim Lian shares have doubled in the past three months, making them the best performers in the Singapore construction index during that period and the second-best performers in the All Singapore Index.
Earlier this month, Sim Lian launched the first public housing project undertaken by a private developer in Singapore. The Premiere@ Tampines was about 9.6x oversubscribed as Sim Lian received nearly 6,000 applications for the 616-unit development, Kuik said.
Sim Lian, which acquired the plot through a tender bid of $82.2m, beat other property-cum-construction firms like Chip Eng Seng
Sim Lian, which started off as purely a construction firm in 1976, branched out into the Singapore property market in 2001. Since then, it has developed six properties, ranging from public housing to freehold condominiums.
"Currently, Sim Lian is still a very small developer, it's not very well-known in the market. Many people don't really know we are doing property," said Sim Lian Land's managing director Kuik Sing Beng, eldest som of the founder. The firm is negotiating to develop two residential condominiums in the suburban parts of Singapore, Kuik said.
Sim Lian's construction arm contributes 35% of the firm's revenue. It builds mostly public housing apartments for the government.
Last year, Sim Lian ventured into the Malaysian property development market, building condominium apartments in Kuala Lumpur and landed properties in Johor Bahru.
Prime locations in Kuala Lumpur cost about $50 per square feet -- a whopping 22x cheaper than Singapore's, said Kuik Sin Pin, Sim Lian's executive director and another Kuik sibling. But he added that the firm's Malaysian operations will only generate 20% of its total revenues within the next three to four years.
Sim Lian's net profit surged 63.6% to $19.4m in its fiscal year ended June 2006.
KE expects Sim Lian's net profit to rise 13.9% to $22.1m for the 2007 financial year.
Sim Lian shares -- which now trade around $0.80 -- have led
a broad-based rally in construction stocks in Singapore, and are
up about 129% in the year to date, compared to a 24% average gain for the 34 Singapore companies in the MSCI Construction and Housing index.
KE analyst Paul Heng still has a "buy" call on the stock, although it has already shot past his target of $0.70. "The upside is a little bit limited from here," he said.
Despite the stock's stellar performance, Sim Lian still trades at a forward PER of 9.41, below the 11 average for its Singapore sector peers and half the 22 average for the Asia-Pacific companies in the MSCI Construction and Housing index.
It is also expanding into Malaysia's residential market with the purchase of a prime 180,000 sq. ft. freehold site in KL and another 530,000 sq. ft. site in JB.
Its construction orderbook with external parties as at 30 Jun stands at $94m. However, inclusive of its in-house property development projects, it totals $281m.
It began its property development activities 5 years ago and has since grown the division to overtake its bread and butter construction business. In FY06, property development contributed about 56% and 75% of the group's revenue and operating profits respectively. KE has a target price of $0.70.
Based on its profits from development projects and construction business, KE have a RNAV of $0.88 for the company. KE's target price of $0.70 is after applying a 20% discount to its RNAV for the risk of being a small developer and its high net gearing of 243.5%. The company is also proposing a 1 for 1 bonus issue to increase its liquidity.