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Any buddies have any view on this undervalued investment holding co?

Haven't seen any open mkt purchases by Peh family for a while - prelude to another attempt to privatise the company?
Finbar's cornerstone investor, Singapore-listed Chuan Hup Holdings, which holds a 7.2 per cent stake, has been with the company since the beginning.

The Australian - Buoyant Finbar eyes fresh opportunities
BY:SARAH DANCKERT From: The Australian June 15, 2013 12:00AM
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Darren Pateman, chief executive of Finbar Group. Picture: Marie Nirme. Source: The Australian
WEST Australian-focused apartment developer Finbar's project pipeline has risen by $500 million to $2 billion in the past six months through a string of site purchases.

Despite the mining downturn, the company wants to buy more land in its home state, managing director Darren Pateman said.

Mr Pateman said Finbar was looking at sites in inner Perth and eyeing another parcel in the Pilbara following the roaring success of its Palago West development in Karratha.

Finbar has forecast it is again on track to report a record profit for fiscal 2013, after posting a record profit last year of $28.3m.

"We're a company that is growing and a number of our projects are under construction hence the reason why we're looking at new opportunities," Mr Pateman said.

Since December Finbar has sealed $40m in deals including nine sites in Perth, Subiaco and Rivervale, and two development joint ventures in Perth.

The company's confidence in the Perth apartment market is despite a downturn in the resources sector, a key driver for the city's property market.

The market was sensitive to bad news, Mr Pateman said.

But it was underpinned by strong migration levels (estimated at 1500 each week by the state government) and low unemployment.

"The market is reasonably good at the moment.

"The improvement has been due to a return of investors to the market.

"My concern is that the investor market is very fickle in that it responds very quickly to changes in sentiment. You get some bad news and it really is an immediate response."

Mr Pateman said the group was still keen to start new projects in the Pilbara, but added it was harder to get a project to work in an area where land prices and construction costs were notoriously expensive.

"You could effectively be given land for free and you still might not be able to make it into a viable project," he said.

Mr Pateman said that it was likely Finbar would not tap the market to fund its next acquisition.

However, he declined to definitely rule out a capital raising for a larger purchase or a portfolio acquisition.

Mr Pateman said the company had no interest at present in expanding to the eastern seaboard, preferring to focus on Perth.

"Some might consider that diversification is a dogma worth considering but (we) think we best stick in our own back yard."

Incorporated in 1984, Finbar was previously an offshore shipping company before changing tack to being a property developer in the mid-1990s.

The Finbar of today was born out of an apartment in Como, South Perth, 20 years ahead of its 1995 listing on the stock exchange.

Mr Pateman has been at Finbar, the property developer, since the start when the then 20-year-old worked alongside Finbar's now executive chairman John Chan to help develop the business. He took over from Mr Chan as managing director in 2010.

Finbar's cornerstone investor, Singapore-listed Chuan Hup Holdings, which holds a 7.2 per cent stake, has been with the company since the beginning.
Chuan Hup actually holds 17.54% stake in Finbar.

Thanks for the clarifications. Where abouts did you obtain the info - AR?

CHH also owns Cedar Woods a WA based developer - any clue how much they own?

CHH has gone off the radar for quite a while largely due to its nature as an investment holding company, will be interesting to see a break up valuations.


(15-06-2013, 08:16 AM)cyclone Wrote: [ -> ]Chuan Hup actually holds 17.54% stake in Finbar.

CH don't own any business now, it is just an passive investor, revenue derive from dividends.

From Finbar AR-2012. There is also a mention in Chuan Hup AR-2012.
What a sham. I don't know exactly the break up value, just a feeling that the intrinsic value should be much more than the current price. And I trust Chuan Hup will be doing well under the guidance of Mr Peh senior. The main reason I stay vested.

Thanks for mentioning of Cedar Woods, I will reasearch more about it.
I read up CH AR FY12.
The investment in Finbar should be under investment securities as it is not stated under associated companies.
If so, the investment amount is revalued periodically to the market price of Finbar, a listed co in Australia.

Net asset of Finbar is around 185m while the number of shares is 214m
This gives a Net assets/shares of 86cents.
For 2013 and 2014, let's say Finbar earns 30m each.
This will add another 28cents to the Net assets bringing it up to $1.14

Finbar closed $1.25 yesterday.

in my opinion, not much hidden value in the balance sheet.
(15-06-2013, 08:24 AM)greengiraffe Wrote: [ -> ]CHH also owns Cedar Woods a WA based developer - any clue how much they own?

Cedar Woods was once an associated company. Based announcement dated 09 Mar 2005 : SALE OF SHARES IN ASSOCIATED COMPANY

The Board of Directors of Chuan Hup Holdings Limited (the "Company") is pleased to announce that the Company's subsidiary, Ventrade (Asia) Pte. Ltd. ("Ventrade"), has sold 7,125,000 ordinary shares in the issued share capital of Cedar Woods Properties Limited ("Cedar woods") (the "Sale Shares") representing 13.38 per cent of the issued share capital of Cedar Woods.

The consideration for the sale of the Sale Shares was A$16,387,500 (US$12,141,499). The consideration was paid in cash and negotiated on a "willing buyer and willing seller" basis.

Following the sale of the Sale Shares, Ventrade owns 5,324,099 ordinary shares in Cedar woods, representing approximately 10 per cent of the issued share capital of Cedar Woods. As such, Cedar Woods ceases to be an associated company of the Company. Cedar Woods carries of the business of investment holding and property development in Australia.

I read at, Chuan Hup sold another 3.1 mil shares of Cedar Woods on 18 Oct 2006. "With this sale, CH is not longer a substantial shareholder of CWP....Balance holdings is about 2.3mil shares or 4.18%."

There is no mention of Cedar Woods in Chuan Hup AR-2012, AR-2011. I think Chuan Hup's vested interest in Cedar Woods is negligible, if it is still vested.
Went through numbers of this company and agreed it is undervalued.
my thoughts....

-price to NAV per share is 0.63, very good almost at the 50cent for a dollar level Big Grin
- Net Cash SGD 143 million which is 59% market cap, WOW is the most of the companies I am tracking so far. But little dividend out. Sounds like Mr. Peh likes buffett thinking...

- One of the Holdings or subsidiary ?? CH Offshore Ltd has debt collection problem of USD 43.95 million not sure CHH exposure to that. anyone knows please advice. Probably this is causing depression of share price in addition to marine sector downturn.

Otherwise I read from sharejunction constant share buy backs for past years, total few million by Peh, anyone have idea how many percent he has now?

If CH Offshore debt collected this share will up.
If delisted, maybe high price maybe low price hard to say.....
I don't know why the management of this company is in any way similarly managed as buffet.

Is it because little dividend out? Is it because the management creates great value through increasing owner's earnings? Is it because it invests in great company at cheap or fair price?

I ain't see much similarity.
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