Lum Chang Holdings

[dydx]

Just checked my bank acount and noted a nice credit from Lum Chang's $0.0075/share Interim dividend for FY12 (ending 30Jun12). Feeling good, and I now look forward to hopefully another good Final dividend in Nov12 (last FY11: $0.02/share).

LCH has continued to buy back its own shares on a daily basis at the $0.30 level. Todate, LCH has bought back 9,631,000 share, or approx. 2.53% of the company's total issued shares.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument

[secretinvestors]

Can someone educate me how the transfer of or use of treasury shares affect the value of the company like lum chang?

http://info.sgx.com/webcoranncatth.nsf/V...E0030BFB6/$file/LCH_Transferof330000TreasurySharesdd30May12.pdf?openelement

Thank you!

[dzwm87]

One of the effects is on basic and dilute EPS.

How it works is very simple. When company buys back shares, it is not a 100% certain that EPS will increase (technically). This is because the company has yet to cancel the shares. If you look at SIA's share buyback scheme, they tend to cancel it after their purchase making it certain that they are indeed hoping to push up their share price (through buyback scheme).

If however, the company merely holds back in its treasury, it can simply sell back to general market or in most of the times, sell it via their employee share option scheme.

In our analysis work, it is better for us to consider diluted EPS instead of the basic version. Of course, blind distinction won't do anything good. One has to realise the reason behind it. If for instance, a huge portion of the change in diluted EPS is due to huge warrants which are due to be exercised soon and its exercise price is probably at a huge discount, then perhaps taking the basic EPS will be better.

[Coattails]

One has to realise the reason behind it. If for instance, a huge portion of the change in diluted EPS is due to huge warrants which are due to be exercised soon and its exercise price is probably at a huge discount, then perhaps taking the basic EPS will be better.

If the likelihood of additional share issuance due to warrants or options is high, shouldn't you use the larger "number of shares outstanding"? I.e. look at the diluted EPS, instead of the basic EPS. Did you get it mixed up?

[pianist]

announced arbitration battle with ryo kisobaki? lc view was it has a strong case..

[dydx]

FY13 (ended 30Jun13) full-year results just released last evening.....
http://infopub.sgx.com/FileOpen/LCH_Full...eID=254397
Another year of steady progress of Lum Chang's well-established construction business in Singapore and residential property development business in Malaysia; the group also added a nice investment property in London. It is relevant to note that Lum Chang's Shareholders' equity has been increasing at quite a brisk rate in the last 2 FYs. An unchanged Final dividend of $0.0125/share declared - making an unchanged total payout of $0.02/share for FY13.

I also think the results announcement is of very quality, both in terms of content and presentation. Kudos to Lum Chang's CFO and BOD!

[Drizzt]

lum chang great results and yields 5.88% a little bit net debt but they require around 7.8 mil to pay that dividend their earnings is 23-28 mil. particularly their cash flow shows they can pay like 8 mil.

I am not sure what is investment holdnigs and others but past 2 years that have been 15-20 mil

[TheMillennium]

The net debt is caused by the purchase of freehold property in London. Otherwise they should be in net cash position same as the previous years.

Other than that, it seems that the management is business as usual. The company has always been generating sufficient free cash flow too. Hopefully next few years can see increase in earnings from the rental income of the London building.

[TheMillennium]

Standard & Poor's Research on Lum Chang

Per Share Data
FY Jun. 2012 2013 2014E 2015E
Book Value (SG cents) 42.46 46.03 49.20 52.34
Cash Flow (SG cents) 6.4 6.8 6.2 6.2
Reported Earnings (SG cents) 5.6 5.8 5.2 5.2
Dividend (SG cents) 2.0 2.0 2.0 2.0
Payout Ratio (%) 35.2 34.7 38.7 38.9
PER (x) 6.1 6.0 6.6 6.7
P/Cash Flow (x) 5.4 5.1 5.5 5.6
P/Book Value (x) 0.8 0.7 0.7 0.7
Dividend Yield (%) 5.8 5.8 5.8 5.8
ROE (%) 13.7 13.1 10.8 10.1
Net Gearing (%) 0.0 20.6 17.8 16.0

LCH FY13 (Jun.) net profit of SGD21.5 mln (+2.3% YoY) took into
account net fair value gains on investment properties of SGD5.8 mln,
which stripped out, sees SGD15.6 mln in adjusted net profit. The latter
came in above our expectations with better-than-expected gross
margin of 10.9% (FY13E:9.5%) and lower taxation. These were
partially offset by higher administration expenses and marketing
expenses. A final net DPS of 1.25 cent was declared, bringing the total
net DPS for FY13 to 2 cents (FY12:2 cents)

FY13 group revenue rose significantly at 75% YoY to SGD494.6 mln,
driven by: (i) higher construction revenue (+69% YoY) with the
commencement of Science Park Drive and Nucleos at Biopolis Road
projects; and (ii) property revenue (+140% YoY) with more phases
completed and recognized for its Malaysian development properties.
This was partially offset by: (i) weaker FY13 gross margin at 10.9% (-
2.1%-pts YoY) due to rising construction costs; (ii) higher distribution
and marketing cost (+87% YoY); and (iii) administration cost (+31%
YoY) attributable to higher staff expenses and acquisition costs
incurred from the recent purchase of its London property. Excluding all
net fair value gains and gain on disposal in FY12 and FY13, the
group’s adjusted net profit would have increased about 16% YoY.

LCH’s order book stands at SGD474 mln. The construction sector
outlook remains sanguine as the Government continues to accelerate
infrastructure spending to keep in line with population expansion.


  LumChangFY13.pdf (Size: 493.96 KB / Downloads: 17)

[gautam]

Seems to me that lumchang is value for money at current valuations compared to othrr constrution companies. Pb0.75 still CD now with reliable history of regular dividend payouts.
Its keningston ppty should provide a good regular incone stream. Plus profits fr malaysian projects not fully booked in yet.
During the edge magazine interview, it was mentioned that the company was looking at an exciting project which could provide incone streams for the next few decades.
I wonder if this wld be announced at the coming agm.
Vested.