In Bukit Panjang: Hillion is Sim Lian Group’s first mixed development in Singapore and Hillion Mall is expected to receive its T.O.P. by 1Q2017. Artist's impression
SIM LIAN GROUP's financial year ended in June 2015. It's a very low profile, conservative, property development and construction group.
Its fundamentals are strong, showing improvement over the years.
| FY2012 | FY2013 | FY2014 | FY2015 | |
| Revenue | $764 million | $742 million | $715 million | $1193 million |
| Net profit attributable to shareholders | $229 million | $167 million | $171 million | $240 million |
| Earnings per share | 25.8 cts | 17.2 cts | 17 cts | 23.9 cts |
| NAV per share | $0.76 | $0.85 | $0.98 | $1.16 |
| Dividend per share | 7.5 cts | 4.6 cts | 4.6 cts | 7.28 cts |
At current price (88.5 cents), its PE is about 4 times while its price-to-book ratio is 0.76 times. Currently with 7.2 cts dividend, the dividend yield is 8%. Looks very attractive to me.
Its debt position has significantly improved, from a debt to equity ratio of 0.94 in 2012 to 0.11 currently.
Bank loan has declined from $667 million in 2012 to $129 million currently.
In 2015, its FV change on investment properties was only $8 million positive, less than 1 cent a share, while in 2014 it was $15.5 million negative.
The group has embarked on overseas investments in recent years, primarily in Australia. In 2013, it bought a freehold commercial development property at 50, Margaret Street, Sydney.
In 2014, a shopping centre at Rothwell, Queensland was acquired. In 2015, the group purchased a Grade A office commercial complex at 59 Albany Highway in Perth.
Current share price has not reflected the net asset value and growth potential, because the share liquidity is quite low.
There are only about 1,360 shareholders and Sim Lian's family controls 66% of the 1 billion shares. Free float is less than 20%.
Prior to his retirement, Chan Kit Whye (left) worked more than 30 years as Regional Finance Director, Financial Controller and Manager in a multinational specialty chemical business. He has played an active role in CPA (Australia) Singapore Branch, taking up positions in its Continuing Professional Development and Social Committees. Kit Whye is a Fellow of CPA Australia, CA of Institute of Singapore Chartered Accountants and CA of the Malaysian Institute of Accountants. He holds a BBus(Transport) Degree from RMIT, MAcc Degree from Charles Sturt University and MBA from Durham Business School.
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