Hiap Hoe

Today & tomorrow -- last chance to get dividend from Hiap Hoe.
0.5 cent a share is not a lot but  it is the first interim div from HH.
More to come....when hotel construction is over

Why did DMG give such a big discount to RNAV? Not quite right.
30% would be about acceptable, so to me the stock is worth in the range of 75-80 cents.

The opening of the hotel in December , probably before Christmas , will be a grand event for minority shareholders who have stayed the course.... Hopefully, the stock price will be a cheery 60 cents at least by then.
[hr]
[OMG 05-07-2012]:

DMG's very conservative target of 61 cents.


"We continue to like the stock for its earnings visibility, disciplined management and undemanding valuation. Our target price of 61 cents is based on 50% discount to its RNAV. MAINTAIN BUY

3 months later.... up 3 cents.
1 month 1 cent, not bad. Just hold ....
One day it + 10 cents = 70 cents.
[hr]
[viviene 04-06-2012]:

52-52.5 cents. Volume is low = no great selling pressure, no hurry to buy LOL.
Can enter? When can enter?

back of the envelope calcns: The 2 hotels charge S$150 rate (should be higher in reality), enjoy 70% occupancy and 20% gross margins. Result :  $3million annually in positive operating cash flow.
Have not included income from F&B, MICE and lease of office space.

Re Hiap Hoe's hotel story, a more juicy on the back of the envelope calculation:
One Dusun Mall, just 3 min walk from Zhongshan Park, was recently launched for sale at $5,000-$6,000+ psf for its retail shops. Apparently the retail space is fully sold!
Even if ZP's shops are valued at a lower $3,500 psf (being 99 year), its estimated 55,000 sq ft retail space is then worth $192.5 million! The office space of about 65,000 sq ft, if valued at $1,500 psf, is worth another $97.5 million, bringing the total retail/office component to $290 million.
Since the total cost of construction and land for the whole ZP site is only about $270 million, Hiap Hoe is virtually getting its 2 hotels for free!
Conservatively valuing the 2 hotels at an average of $500,000 per room gives a value of about $400 million. That works out to 42.5ct for Hiap Hoe's 50% share.

Thank you sumer for taking the time to share your knowledge today. I sincerely appreciate it. I think you are the first to share about Hiap Hoe in this forum. The time you spent reviewing the business  and recommending it is most appreciated. You were very helpful and gave me the courage to buy Hiap Hoe shares for the first time in my life. My purchase price was below 50 cents.