Sing Holding

Sing Holding is principally engaged in: (a) the development and sale of residential, commercial and industrial properties ; and (b) investment in residential, commercial and industrial properties. At present, Sing Holding only has two property development projects on hand; i.e., Waterwood Executive Condominium (EC) and Robin Residences. Sing Holding also owns 48 strata units of BizTech Centre with a saleable area of 50,227 square feet in the industrial building. Of this, approximately 88% is tenanted.

Waterwood EC is a 70:30 joint venture between the Sing Holding and Greatearth Pte Ltd. Based on the information available at the following website, 363 units of Waterwood EC have been sold and 10 units remain available. TOP for Waterwood EC was secured in January 2016 and Sing Holding has started to recognize the revenue and profit from the project. Based on the information lodged at URA website, Waterwood EC units were sold at an average price of $799.9. http://www.executivecondominium.sg/Waterwoods.html

Robin Residences is a 100%-owned private condominium development. Robin Residences consist of 134 residential units. From the information available at the following website, TOP is expected in December 2016. Based on the caveats lodged at URA website, 82 units have been sold at an average price of 2,350.8 psf. http://www.robinresidences.net/

Sing Holding’s revenue increased by 637.2% from $35.8m in FY 2014 to $263.6m in FY2015. Profit for the year is $26.1m in FY 2015 compared to a loss of 0.5m in FY2014. Its current asset is $507.0m while current liabilities amount to $261.0m and non-current liabilities amount to 4.8m. Current assets less total liabilities is $241.4m , which is higher than its market capitalization of SS$124.3m; hence, Sing Holding is a net-net stock. 

Revenue for 4Q 2015 rose mainly due to the recognition of sales proceeds from about 43% of all sold units in Waterwoods which had been served with Notice of Vacant Possession ("NVP") in 4Q2015. Robin Residences also secured TOP in 4Q2015 and as such, the balance 24% of contracted sales was recognised as revenue in the quarter.

With only 52 units of Robin Residences unsold, I am optimistic that Sing Holding would be able to sell all the units within the allowable period to avoid paying a hefty extension charge.

I expect Sing Holding to pay out a special dividend to reward shareholders in FY 2016. My average purchase price for Sing Holding is $0.311. I am hesitant to increase my position for now despite it is undervalued because the controlling shareholder of Sing Holding has not been very friendly to the minority shareholder. I intend to hold Sing Holding for another year, after it announces its FY2016 results in February 2017.