SING HOLDINGS: "Expect $130 m profit from Parc Botannia," says KGI Securities
KGI Securities (Singapore) report:
Lee Sze Hao, CEO of Sing Holdings: His direct and indirect interest in the company has risen by 1.318 million shares in March-April this year. NextInsight file photo.The group launched the sale of its 735-unit private residential project Parc Botannia at Fernvale Road in November 2017.
It has already issued options to purchase up to 43% of the units as of 26 Feb 2018, just four months within launch.
We estimate an average selling price (ASP) of S$1,250 psf, which is 25% higher than our initial estimates of S$1,000 psf.
34 – 52 c
Dividend yield (ttm)
We estimate PATMI contribution of S$130mn or S$0.32/share from this project alone, making up an astounding 70% of Sing Holding’s current market capitalisation.
As a result, we raise our RNAV estimate to S$0.98 and apply a 30% discount to arrive at a fair value of S$0.68 (+55% upside potential).
Share price: 44 c
RNAV: 98 c
Source: KGI Securities
It is currently trading at an attractive deep discount of more than 50% to its S$0.98 RNAV, which we believe may eventually narrow upon progressive recognition of profits from Parc Botannia in 2018 and 2019.