BT reported today that Hiap Hoe has sold a total of 61 units (out of 200) of Waterscape so far, the bulk (45) over the past weekend, after a second agency was roped in to sell the project. Price ranged from $1,738 to $2,010, and averaged $1,873, higher than my estimates of $1,750psf, which makes my projected profit figures not just achievable but conservative. The sales figure is surprisingly good, and is achieved despite the new govt measures announced. The sales will help to allay fears that the companyââ¬â¢s projects remain mostly unlaunched and unsold and that the potential profits from its cheap land purchases would remain unrealised.
Hiap Hoe announced on Fri that book closure for the 1-for-4 bonus issue is 15 March 2010. Usually, the ex-date is 2-3 working days prior to book closure, which means the stock will trade ex-bonus on 10 or 11 March 2010.
In ST today, Hiap Hoe is reported to have sold 88 units (out of 200) of Waterscape (at Cavernagh) so far, prior to its official launch this weekend. Prices at this weekendââ¬â¢s launch will average $1,880 psf. The luxury/prime area market is reported to be more active recently, and this bodes well for Hiap Hoe, as its remaining projects include Sommerset-area Skyline 360 (more than 30% sold) and a condo rising from the ex-Aspine site at Balmoral.
Hiap Hoe went ex-bonus yesterday. The theoretical ex-bonus price was 47.6cts. Hence, the closing price yesterday of 50.5cts represents a rise of 2.9cts. With this adjustment, Hiap Hoe share price has now clearly broken out of a triangle pattern on the chart, which is bullish. The stock is now trading at the highest level since Jan 2008. Meanwhile, I understand more units of the Waterscape are sold. Sales have crossed 50%, or more than 100 units. With most of its big profits yet to be booked, I believe Hiap Hoe\'s appealing story is still in the process of being told, and there will be further upside for its share price.
