not much good news for this counter as china slowdown is affecting steel. China has oversupply of steel and also over production. I think for the rest of this year steel market will be quite bad. Turnaround will have to be after they have closed all those steel factories churning out cheap steel.
Hupsteel's core business will continue to be a drag for many more years to come....going to be a very painful wait for its avid supporters..
Steel market can be at the doldrums for longer than the counter can keep afloat. Can Hupsteel keep afloat?
(10-05-2014, 09:27 PM)BlueKelah Wrote: [ -> ]not much good news for this counter as china slowdown is affecting steel. China has oversupply of steel and also over production. I think for the rest of this year steel market will be quite bad. Turnaround will have to be after they have closed all those steel factories churning out cheap steel.
Extract on property segment below for ref, pls.
By the time Hupsteel building at Kim Chun is up at 2015, the rental rate might be turning down?
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Property
A deep gloom has settled over the Singapore housing market since the start of the year amid weak rental demand and tight loan curbs.
Cooling measures to rein in the once red-hot sector are having an impact, with both private home and HDB resale prices sliding in the first three months of the year.
A combination of higher interest rates, increased supply and slower foreign population growth are likely to depress prices further, says Mr Tay, adding that they are expected to dip a further 15 per cent over the next three years.
CIMB Research's Mr Goh agrees: "With a lot more new units coming onto the market over the next two years, we expect prices and rental yields to moderate further."
Rents and prices for industrial property, which showed signs of moderating in the first quarter, are expected to keep rising at a slower rate.
An average of 2.1 million sq m of industrial space is expected to become available every year for the next three years.
This is about 4 per cent to 5 per cent of the existing stock of industrial space, and significantly higher than the average annual demand in the last three years.
No more CEO buyback.....Hupsteel looks very vulnerable...at 20.5 cents...those who bought below 20 cents thinking that they had a cheap buy might be in for a rude surprise ...
Hupsteel is now on verge of breaking down below 20 cents...who wants to catch a falling knife?
don't catch lah, wait for it to come down!
value is always found right at a certain point!
Breaking below 20 cents soon...Bids at 20 cents are unsustainable...
Quote:If the revalued investment properties had been included in the financial statements at cost less accumulated depreciation, the net book value of investment properties for the Group and the Company would have been $10,080,000 (2012: $10,151,000) and $2,936,000 (2012: $2,913,000) respectively.
As at 30 June 2013, the fair value of investment properties is $78,500,000 (2012: $47,200,000) as determined by independent professional valuers based on the properties’ highest-and-best-use using the Market Comparison Method, Residual Land Valuation Method and Income Method.
Above are quoted from the latest AR. The NBV of the investment properties per the latest AR were $13.567M, does this means that the investment properties were understated by almost $65M? If so, then why is it the rental yielded from the investment properties don't seems to be meaningful (FY2013: gross rental income of 644k versus FV of $78.5M)? And if the rental incomes are not meaningful, how can the valuer derives the FV of $78.5M based on income approach? What do you think the possibility that the value of investment properties be realised if the company do not sell them? Those who vested, what is your point of buying?
[ not vested but watching ]
Now if you have low rental yield compared to the high supposed market value, shouldnt management sell those investment properties instead? ... And give cash back to shareholders... It seems like managment will hold on to these low yield investment properties forever. You cant create value for shareholders with such a mindset
Perhaps those investment properties are worth closer to the nbv than to their supposed market value.
My 2 cents worth, me not vested, but my dad is
Hard cash @ 9.6c per share. No debt! Simple business model.
Yes, I also think they should sell the darn properties (but no one will buy @ 78.5m lol). So, they will delist when the market crashes. Then, we all hupsteel suckers will make lots of noise!!
Okay, that's just the worst case scenario, I hope.