LTC Corp (prev. Lion Teck Chiang)

[opmi]

I thot at AGM, Board already said the current GFA already maxed out to GPR 2.5 already.

Yes, but markets were factoring in possible change of the site to commercial or a mixed commercial and residential development

quite hard. coz it is like living next to a factory and a big temple. not in line with general planning principles.

URA like to cluster zoning together. if rezone arumugan to resi, then must rezone the whole stretch along PIE. like Starhub Green to Boustead. Paya Lebar is an indu estate. likely to stay so.

my take on LTC is:-

GPR max out.
Not rezoning or increase in GPR.

Additional value can only be from from redevt. To capture additional value, LTC will have to acquire the roads and water basin from SLA to amalgate the whole land. This is not possible coz Singapore Warehouse just redevelop and lease out (irrevocable) to data centre for 15 years. and Sg warehouse need the access road. So LTC will be status quo for foreseeable future.

And LTC dividend not great. With the working capital -intensive steel trading arm.

MY view is that it is deep value stock without any catalyst to unlock value.

not vested.

[GFG]

I don't expect LTC to "unlock" value by doing anything to their lion buildings. They can't do anything much anyway
It is still a greatly undervalued company and the markets will recognize that eventually
FY14Q1 results are pretty decent, with NAV continuing to rise
In the mid term, profits will still b supported by demand for steel from the mrt n residential projects

I think it's a good value buy at today's price of $0.79

Vested further

[money]

Relax man! In the past few weeks, the property and construction stocks have shown a general decline regardless of overvalued or undervalued. That's how the stock market works, with ups and downs, avoid feeling disappointed when you see paper profits evaporated, it may be easier to just bear in mind that we are doing a good job if we can beat the sti just a few percentage points consistently year after year

[opmi]

I don't expect LTC to "unlock" value by doing anything to their lion buildings. They can't do anything much anyway
It is still a greatly undervalued company and the markets will recognize that eventually
FY14Q1 results are pretty decent, with NAV continuing to rise
In the mid term, profits will still b supported by demand for steel from the mrt n residential projects

I think it's a good value buy at today's price of $0.79

Vested further

For me, value stocks need to convert assets to cash via asset sales or dividends. if not, will always trade at a discount to NAV. Just my view only.

[GFG]

Thats true, if LTC does an asset sale they can probably get almost $1.50 per share, close to NAV. Problem is nobody can predict how value can be realized, or when.
As value investors, we can only buy value and wait for it to be realized by the markets
Dividend has always been an issue. Management has shown they are listening by increasing it in FY13 but it is still considerably low, less than 1.5%
As long as they are consistently increasing NAV while maintaining positive free cash-flow, I think the lov yield is justified
In addition management compensation is pretty reasonable

[mulyc]

people sat up when pm lee announced the whole shifting of air base to changii, and freeing up the whole paya lebar area or air traffic. what many do not seem to realise is that it will take decades to see through this whole shift. ltc investors either need to be in it for the long haul, or negate the whole industrial property "value unlocking" potential entirely. things are not gonna happen overnight.

[GFG]

people sat up when pm lee announced the whole shifting of air base to changii, and freeing up the whole paya lebar area or air traffic. what many do not seem to realise is that it will take decades to see through this whole shift. ltc investors either need to be in it for the long haul, or negate the whole industrial property "value unlocking" potential entirely. things are not gonna happen overnight.

Yes, exactly. I think LTC investors got to look at valuations alone and not expect any "unlocking" of value from rezoning. If it happens, great. But consider that it will never happen. There are too many uncertainties, ESP if we are talking abt some vague macro plan happening

[Stocker]

The management of Lion Group , be it in Malaysia or Singapore has never been generous to its minority shareholders. Check their records and you will know why it will still be trading at a deep discount to NAV. Thing happens for a reason.

[GFG]

The management of Lion Group , be it in Malaysia or Singapore has never been generous to its minority shareholders. Check their records and you will know why it will still be trading at a deep discount to NAV. Thing happens for a reason.

When you say "be generous" I guess you mean in terms of dividends?
Like I said it's not a great company if you are just waiting for dividend pay outs
But management has done a great job creating value, although trading at a discount to NAV, look at the share price over the last 5 yrs.
They do have to do a better job of engaging SH though. There isn't even a proper website for LTC

[CY09]

I thot at AGM, Board already said the current GFA already maxed out to GPR 2.5 already.

Yes, but markets were factoring in possible change of the site to commercial or a mixed commercial and residential development

quite hard. coz it is like living next to a factory and a big temple. not in line with general planning principles.

URA like to cluster zoning together. if rezone arumugan to resi, then must rezone the whole stretch along PIE. like Starhub Green to Boustead. Paya Lebar is an indu estate. likely to stay so.

my take on LTC is:-

GPR max out.
Not rezoning or increase in GPR.

Additional value can only be from from redevt. To capture additional value, LTC will have to acquire the roads and water basin from SLA to amalgate the whole land. This is not possible coz Singapore Warehouse just redevelop and lease out (irrevocable) to data centre for 15 years. and Sg warehouse need the access road. So LTC will be status quo for foreseeable future.

And LTC dividend not great. With the working capital -intensive steel trading arm.

MY view is that it is deep value stock without any catalyst to unlock value.

not vested.

Yup fully agree with your statement. I had posted previously in June 2013 on another forum warning ppl not to put too much hope a rezoning.
In addition, Unfortunately for LTC to amalgate all its plots is difficult. This is because the road, dividing its land, is serving other private owners as well. Hence LTA will not be agreeable to the sale of the road unless LTC acquires the other plots.

However, the good point for those still invested in LTC is that high chance of a revised upwards GPR after MINDEF returns the airbase.