Sing Holdings

www.valuebuddies.com/thread-23-post-76305.html#pid76305


Hi Guys,

As of today we have 42 minority shareholders who share our concern about the share performance of Sing Holdings. I believe that there are many more out there who are concern about for some reasons or another they decide not to put their names to express their concern. Some might have given out and sold out their Sing Holdings shares in disgust. For those shareholders who did not put up their names but share our concern, you can send your 'letter of concern' to the company using our draft or write a personal letter to the company. Please come forward.

Most of the 42 shareholders who sign up do not know one another. We have not met face to face in real life and that we do not know each other's name. This is entirely SPONTANEOUS. Some of us, me for example have written to the company to express my concern but they somehow do not seem to listen. Maybe the company feels that most other shareholders are happy with the company and that our individual email to the company does not reflect the minority shareholders. Let this be a WAKE UP CALL to the Board of Directors and Management. It is time to pay attention and LISTEN to minority shareholders even though their holdings in the company might not be significant but they are still SHAREHOLDERS.

Below is a draft copy of the letter. Some of you might feel that bonus warrants is not appropriate hence it is ok to take out that sentence if one is uncomfortable. You might also want to make some changes. It is ok for the main point of the letter is that we are concern with the share performance after ALL THESE YEARS and please LISTEN and DO SOMETHING ABOUT IT. Tools and avenues like share buyback for example are available to bring value to shareholders. PLEASE USE THEM.

Let's email the letter with our names TONIGHT or TOMORROW morning so that the company can receive our emails by tomorrow latest. For those shareholders who share our 'concern' but could not send the email on time. Please join us by writing to the company for everyone COUNTS. I have the CFO's email address but I feel that it is more appropriate to forward our emails to the company's main site so that they can refer our concern to the appropriate person. The email address is enquiries@singholdings.com


or you can visit the website to get the email address.

singholdings.com/contact-us.html

Thanks all, you guys are GREAT

6 March 2014

Sing Holdings Limited
96 Robinson Road
#10-01 SIF Building
Singapore 068899

Dear Board of Directors and Mr Lee

We are a group of shareholders writing in to express our concern with the share performance of Sing Holdings for the past few years. We are disappointed with the Board and Management inaction towards the under performance of the share price. Shareholders' call for a share buy-back has been resisted by the Board and Management as you feel that cash could be better utilised. But after so many years, we do not feel that we had benefitted from the growth of the company as much as the management. A bonus warrants for example can be issued, rewarding shareholders while preserving cash.

A share buy back mandate and when exercised would send a STRONG signal that the share price is undervalued and that the Board and Management support and share the minority shareholders' concern. With the current bearish property market sentiment, we feel that there is no better use of funds than to buy one's own undervalued shares. Therefore we strongly recommend a share buy back exercise.

With positive net current assets and receivables due from The Laurels Project, we hope you would seriously consider a sizeable dividend payout to reward shareholders' trust in the Board and Management over the past few years.

We deeply appreciate your time and effort in considering these suggestions.

Thank You.

Yours Sincerely
Shareholder A's name
Shareholder B's name
.....
.....
Shareholder E's name

Reply from CFO of Sing Holdings:

We refer to your email on 6 March 2014.

The Company shares your concerns and appreciates your suggestions. Following requests received from a group of shareholders recently, the Board convened a meeting to discuss on the suggestions mentioned in the emails. We would like to assure you that it is the guiding principle of the Board that for every decision it makes, it should be in the best interests of the Company and all shareholders, and to ensure sustainability and continual success for the Company in the long run.

The Company’s share price has been moving upwards steadily for the past three years to a high of 52 cents before declining around July 2013 (please refer to the Company’s 3-year stock chart attached). The decline in the share price corresponds to the introduction of the Total Debt Servicing Ratio (“TDSR”) framework by The Monetary Authority of Singapore in end June 2013. The impact of the TDSR on the Singapore residential property market was harsh, which in turn resulted in the fall in share prices of companies with substantial exposure to this segment, of which the Company is one.

With regard to a share buyback scheme, the Board is of the view that the basic criteria is that a company must have cash in excess of its operational and expansion needs. A share buyback mandate, when exercised, may not address the under performance of the share price as seen in the case of some local property / construction companies where the effect on share price is minimal. In fact, share prices of some of these companies are lower than before the shares were bought back.

In the context of our Company:

1. The Company’s core business of property development and investment is capital intensive. For long-term sustainability, the Company has to continue to expand its business amidst the tough market condition now. Even with external financing, much equity is needed to fund any acquisition and subsequently, the development and construction of projects. As such, ready funds are required to embark on any acquisition opportunities.

2. All our projects are funded through a mix of internal cash and bank borrowings. With the prevailing challenging market conditions, in order to withstand any downturn in the property market or the macro-economies as a whole, it is critical that a healthy cash balance is maintained to provide assurance to the banks for their continuous support.

3. The Company is in a net current assets position. However, assets such as development and trading properties are relatively illiquid, especially in this challenging environment where sales are slow. Furthermore, the receivables due from The Laurels project will be required for payment of outstanding construction costs, income tax and for profit distribution to our 30% joint venture partner in the project.


4. The Company’s cash position as at 31 December 2013 stood at about S$27 million, some of which were project accounts’ money with restricted use.


In view of the funding requirement as explained above and without a large cash float, the Board is of the view that it would not be appropriate for our Company to deploy its financial resources to embark on a share buyback scheme or to distribute a sizeable dividend, as these may curtail its ability for business expansion and compromise its financial position.

Notwithstanding the current property market condition, the intrinsic value of our Company remains strong. With this fundamental value in place, the Company believes that market forces will determine the fair value of the Company when market sentiments improve.

Yours sincerely
Tay Puay Kuan
CFO

Well, the reply from Sing Holdings management is what I would expect it to be. As I have written earlier on the issue, Sing Holdings is not in a net cash position and with a substantial bank debt burden. Buying back its own shares is therefore not an appropriate course of action.

I wouldn't be shocked if the management decides to privatise the company. Minorities would be lucky to be offered 45 cents. Sob, sob.

An email to the management by a fellow shareholder

RE: Sing Holdings
Dear all

I too have sent the letter earlier to the company and received the reply below. Further to that, I sent another email to the company. See below. You may want to also send a follow up email to the company to tell them reserving money for acquisition is not excuse not to do a share buyback.

---

Dear Puay Kuan

Thank you for the reply. I noted that Sing Holdings share price has come down. I would like to ask for the remuneration of directors and key management over the same period, including the latest FY. In addition, I kindly request the Board Remuneration Committee to explain how the remuneration of key management are determined and what is the policy.

On your/ the Board stated reasons under point 1 to 4, I wish to highlight that the Board should view share buyback on the same basis any other land acquisition. This is because substantial value of Sing Holdings now is in the Robin Road site, as you are aware. Buying the company shares now will be no different from buying any other raw land, except that the Board is most familiar with the Robin Road project & the company's status and the company can buy at a substantial discount to NAV/ RNAV. In fact, on risk/ reward basis, from the Board's perspective, share buyback should be most attractive compare to other land acquisition. As such, the need for business expansion is no argument to reject a share buyback, from shareholders's perspective.

On that basis, the Board should also consider tapping on bank debt for share buyback, as that is what the company will do for land acquisition. Be that as it may, I will be grateful if you can share what is the company's cash position after full collection from The Laurel project.


Thank you.

valuebuddies.com/thread-23-post-77727.html#pid77727

The exec condo is just about 50% sold. This is slow. Does anyone know why? Me thoughts the location facing the water bodies is fantastic, yet to have sold less than 190 units to date is a surprise to me. Anyone can enlighten me???