Today (6Feb12), Hor Kew shot up by $0.008, or 18.6%, to close at $0.051, backed by a higher volume of 901 lots trasacted .
Hor Kew's largest and most valuable asset is a huge piece of residential and commercial development land with a total area of 74 hectares located at Labu, Seremban, Negri Sembilan, Malaysia, purchased in Aug2011 at a fire-sale price of MYR53.8m.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument [22Nov2007 announcement]
http://info.sgx.com/webcoranncatth.nsf/V...20039094F/$file/CompletionofLandPurchase21.9.11.pdf?openelement [21Sep2011]
Based on the lastest Q3 (ended 30Sep11).....
http://info.sgx.com/webcorannc.nsf/Annou...endocument
, each Hor Kew share has a NAV backing of $0.1046, which is likely understated by quite a big margin, as the piece of development land in Malaysia is stated at cost.
More info from Hor Kew's corporate website.....
http://www.horkew.com.sg/
and FY10 (ended 31Dec10) AR....
http://info.sgx.com/listprosp.nsf/07aed3...00016c973/$FILE/HorKew%20Corp%20Limited%20AR%202010.pdf
Today's (20Mar12) announcement concerning a certain Khoo Soo Wah's earlier (17Feb12) withdrawal of a writ of summons filed by him in Malaysia High Court on a claim against Hor Kew Corp relating to the proposed development of a piece of land at Labu, Seremban, Negeri Sembilan, Malaysia, now owned by its Malaysian subsidiary GPX Land S/B, and Khoo having made a public apology today.....
http://info.sgx.com/webcoranncatth.nsf/V...70010AB42/$file/UPDATEONWRITOFSUMMONS.pdf?openelement [17Feb12 announcement]
http://info.sgx.com/webcoranncatth.nsf/V...7003E1F01/$file/2012.03.20UpdateonWritofSummons.pdf?openelement [20Mar12 announcement]
http://info.sgx.com/webcoranncatth.nsf/V...7003E1F01/$file/APOLOGY-ENGLISH.pdf?openelement [text of Khoo's public apology]
does shed some light on the potential of the piece of land when developed in the future.
Meanwhile, there appears to be some remaining issues with some previous interested parties to the piece of land concerned which require help from the Malaysian Court to resolve/settle.....
http://info.sgx.com/webcoranncatth.nsf/V...7003E4691/$file/2012.03.20UpdateonGPX.pdf?openelement
It appears it is not as easy to buy land in Malaysia, but I suppose if GPX Land S/B is the rightful legal owner of the piece of land on the relevant Land Register in Malaysia, then Hor Kew Corp's ownership claim and legal rights over the piece of land should be safe.
Backed by quite high and rising traded volume in the last 4 market-days (since 10Jan13), this smallish local general contractor counter seems to have caught the eyes of some investors.
Being an established and experienced player in HDB's building programme, Hor Kew could well see better times ahead. Perhaps it is timely to take a good look into the company's latest 3Q/9M (ended 30Sep12) results.....
http://info.sgx.com/webcoranncatth.nsf/V...6001A534E/$file/HorKew14.11.2012.pdf?openelement
Over the last year and a half, the share price has gone from 8 cents to 6.7 cents, so, no major improvement
I have examined this a bit more in detail.
My thesis has not changed i.e. I would stay well clear of this counter.
I have outlined the reasons below.
http://sgx-stocks-sti.blogspot.sg/2014/0...ation.html
I am also attaching the listing document which shows it listed at 20 cents.
Broadly, if you had bought at 20 cents and held for 14 + years, you would be down 66.5% with an annualized depreciation rate of 7.3%
Hor Kew had been trading range-bound between 6 ~ 7c for the past one and a half year, while NAV stood at 13.81c as of 2013.
Still waiting for their announcement on the development on the piece of land in Malaysia. With the recent vertical expansion in the prefabrication and precast factory in Malaysia, Hor Kew is able to mitigate the rising cost via supplying the finished products for their own projects in Singapore.
Overall balance-sheet are sound, but counter lack liquidity; although about 35% of the issued shares are held by the public. Probably current shareholders view it as undervalued and chose to hold on to the shares while waiting for the deal in Malaysia to materialize.
Interesting ... Debarment from tendering.
The Board of Directors (the "Board") of Hor Kew Corporation Limited (the 'Company') wishes to announces that Hor Kew Pte Ltd ("HKPL"), a wholly-owned subsidiary of the Company and the building construction arm of the Group, has been debarred by Ministry of Finance Singapore from tendering for all lines of business until 25 November 2016 on grounds of Withdrawal of Tenders Before Award was made.
The debarment from tendering by Ministry of Finance is expected to affect the performance of HKPL for the next financial year ending 31 December 2016. However, the negative impact of the debarment from tendering on Group’s performance will be mitigated, as the Group has diverted its resources to precast and prefabrication activities after taking into consideration the low/negative returns from the construction activities in the past two years.
Haha that really funny....i think govt bid too costly these days?