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Selling like hotcakes. 1Q07 saw the take-up of the remaining units of Vertis (Amber Road, freehold, 42 units; ASP S$730 psf) and Quinterra (Holland Road, 99-year, 55 units, ASP S$670 psf) as well as all 29 bungalows at Paradise Island (Sentosa Cove, 99-year, ASP S$1,100 psf). Orange Grove Residences (freehold, 60 units), which was launched in January this year, is also 77% sold at an average price of just below S$2,100 psf. Ho Bee plans to launch two more projects later this year ? Orange Grove II (freehold, 72 units, est. ASP S$2,500 psf) and Waterfront Collection (99-year, 92 units, est. ASP S$2,000 psf).
Maintain Outperform.
RNAV estimates by about 12%. Based our sensitivity analysis, every S$100 psf
rise in average selling prices has the potential to raise our RNAV estimates by 1%.
In addition, we are ascribing a 20% premium to Ho Bee?s valuation to account for
potential upside to our selling price assumptions for its prime luxury residential
developments. Accordingly, our target price has been lifted from S$1.94 (parity to
end-CY08 RNAV) to S$2.60 (1.2x end-CY08 RNAV).
Ho Bee is the biggest Sentosa
developer and is still reaping rewards for making the first move there. Upcoming
Sentosa projects, namely 'Waterfront Collection' and 'Seaview Collection', are
expected to be launched at record prices, which would bode well for the Group's
earnings growth well into FY08-09.
Uptrend in high-end residential to add value.
stratification in the Singapore residential market, with foreign-driven luxury
residences notably outperforming the mass residential market. Apart from
Sentosa Cove, Ho Bee's other projects are mainly high-end residences.
The 1QFY07 net profit was 31.5% of our FY07 forecast slightly above our
expectation due to earlier recognition of profit from its projects. We have
revised our FY07 earning forecast to S$267.9m. We continue to like the stock
for its strong positioning in Sentosa as well as its astute management.
We re-iterate BUY with a target price of S$3.00 based on 10% premium to
our RNAV estimate.
Extracted from SGX - HO BEE:
Group turnover for the 1st quarter of 2007 soared nearly five fold to $245.8 million from $52.8 million in the same quarter last year. This was attributed to the sharp increase in the sale of development properties.
This robust turnover boosted the Group?s quarterly earnings to reach a new high. Profit before tax and minority interests jumped 472% from $16.4 million in the corresponding period last year to $94.1 million. Likewise, profit attributable to shareholders registered a very significant increase of 425%, rising from $13.2 million to $69.1 million.
Compared with the 1st quarter of the preceding year, earnings per share for the period under review rose substantially from 2.13 cents to 9.37 cents. With this strong performance, shareholders? fund now stands at $599.1 million, or 81.3 cents per share.
Would the above good result influence the price tomorrow?
anynews? something brewing
BIG congratulation msg on today's paper that no one will miss
Seams like all market are down.