KGI Securities (Singapore) report:

LeeSzeHao2Lee 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. 

Stock price 

44 c

52-week range

34  – 52 c

PE (ttm)

53

Market cap

S$176 m

Shares outstanding

401 million

Dividend 
yield (ttm)

2.27%

1-year return

22%

Source: Bloomberg

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). 

Sing Holdings

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.

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