2nd Liner Prop Stocks

WING TAI Holdings Ltd: Well positioned to ride out down-cycle

While Singapore new home sales in July appeared strong, we believe the outlook for the domestic residential space remains fairly muted. This is particularly so for the high-end segment, and sales at Wing Tai’s luxury projects will likely experience continued headwinds going into 2H15, barring a reversal of the ABSD on foreigners. The group’s FY15 PATMI (ending Jun 15) fell 41% to S$150.3m, mainly due to lower YoY contributions from its development segment and a weaker share of profits from Wing Tai Properties Ltd in Hong Kong, which was overall broadly within market expectations. In order to conserve cash and further buttress its balance sheet, Wing Tai reduced its FY15 dividend to 3.0 S-cents from 6.0 S-cents last year. The group’s net gearing ratio also further strengthened to 10% versus 16% as at end of FY14. We believe the group is well-positioned to ride out the current down-cycle and see significant long term value in its shares, now valued at 43% of its book value. Maintain BUY with an unchanged fair value estimate of S$2.58. (Eli Lee)

KSH HOLDINGS jumped today. Why???


14:01:03 0.600 2,000 Sell Down
13:59:35 0.605 20,000 Buy Up
13:59:15 0.600 50,000 Buy Up
13:59:15 0.600 50,000 Buy Up
13:59:15 0.600 1,000 Buy Up
13:58:52 0.595 20,000 Buy Up
13:58:33 0.590 30,000 Buy Up
13:58:33 0.590 50,000 Buy Up
13:58:33 0.590 1,000 Buy Up
13:58:09 0.580 10,000 Buy Up
13:58:09 0.580 30,000 Buy Up
13:58:09 0.580 1,000 Buy Up
13:57:38 0.575 20,000 Buy Up
13:56:27 0.570 15,000 Buy Up
13:56:27 0.570 1,000 Buy Up
13:56:09 0.560 40,000 Buy Up
13:55:54 0.560 10,000 X
13:55:54 0.560 1,000 X
13:55:54 0.555 30,000 X
13:55:54 0.550 10,000 Buy Up
13:55:31 0.550 50,000 Buy Up
13:55:31 0.550 1,000 Buy Up
13:54:48 0.540 1,000 Buy Up
13:54:48 0.540 45,000 Buy Up
13:54:31 0.535 15,000 Buy Up
13:54:13 0.530 50,000 Buy Up
13:54:13 0.530 15,000 Buy Up
13:54:13 0.530 1,000 Buy Up
13:53:59 0.525 20,000 Buy Up
13:53:32 0.520 50,000 Buy Up
13:52:22 0.520 1,000 Buy Up
13:52:22 0.520 10,000 Buy Up
13:52:22 0.520 8,000 Buy Up
13:52:04 0.510 50,000 Buy Up
13:52:04 0.510 1,000 Buy Up
13:51:11 0.505 20,000 Buy Up
13:51:11 0.505 50,000 Buy Up
13:51:11 0.505 10,000 Buy Up
13:50:47 0.500 20,000 Buy Up
13:50:47 0.500 50,000 Buy Up
13:50:47 0.500 1,000 Buy Up
13:50:22 0.495 50,200 Buy Up
13:48:32 0.495 30,000 Buy Up
13:48:09 0.495 20,000 X
13:48:09 0.495 10,000 X
13:48:09 0.490 30,000 Buy Up
13:47:26 0.490 50,000 Buy Up
13:47:26 0.490 1,000 Buy Up
13:43:30 0.485 10,000 Buy Up
13:43:30 0.485 56,800 Buy Up
13:42:49 0.480 1,000 X
13:42:49 0.480 60,000 X
13:42:49 0.480 50,000 X
13:41:47 0.475 200 Buy Up
13:34:19 0.475 60,000 Buy Up
13:32:31 0.470 10,000 Buy Up
13:32:31 0.470 50,000 Buy Up
13:32:31 0.470 11,900 Buy Up
12:13:35 0.470 48,100 Buy Up
12:13:35 0.470 1,900 Buy Up
11:28:44 0.465 70,000 Buy Up
11:18:59 0.465 20,000 Sell Down
11:17:23 0.465 30,000 Buy Up
11:15:50 0.465 20,000 Buy Up
10:52:35 0.465 50,000 Buy Up
09:57:03 0.465 50,000 Buy Up
09:52:03 0.465 45,000 Buy Up
09:45:49 0.465 5,000 Sell Down
09:43:50 0.470 18,000 Buy Up
09:42:36 0.470 100 Buy Up
09:42:21 0.465 1,200 Buy Up
09:42:21 0.465 30,000 Buy Up
09:42:21 0.465 50,800 Buy Up
09:17:56 0.465 1,100 Buy Up
09:17:55 0.465 5,000 Buy Up
09:17:55 0.465 5,000 Buy U

Nil-paid rights of Heeton trading on Day 1 today. No trade...haha....because exercise price of S$0.493 is HIGHER than the mother share (45.5 cents).

The mother is below the theoretical ex-rights price of S$0.558 per Share. This bodes ill for the subscription of the rights shares. This rights issue is not underwritten and only the Toh related parties/directors have undertaken to subscribe. Since they control 62% of the company, there will be rights $ coming in....and they may even subscribe for excess and raise their stake.

So should one not subscribe to the Heeton rights shares?

Sumer -- or any other expert -- what do you think are the prospects of Heeton? Should one subscribe to the rights shares? The exercise price is quite a bit of $.

Hi Kapitan, just my humble opinion, as the share price has already fallen below the rights price, it will not make business sense to subscribe to the rights.

The majority shareholders will probably use this chance to subscribe to their entitled rights as well as mop up the excess shares minority investors foresake, and get to raise their stake in the company at a price much lower than months ago.

Will this lead to the company being taken private eventually? It's anybody's guess. The company has disappointed in terms of being able to sell their developments quickly like ChipEngSeng. Having said that, the company is still trading way below it's RNAV.

No trading again of Heeton shares. Hah! so many longterm shareholders, refusing to surrender their shares. Will they subscribe for the rights shares.?

I looked at the chart , and a thought came to mind -- could the share price have been engineered down ahead of the rights issue, to deter people from subscribing to the rights, so some vested parties can sweep up a lot of the excess rights later???? Conspiracy theory, 2 cents worth... What do you think, Mr Wiki?