30-08-2014, 09:57 PM
To further support your point, I went to take a good look at Aspial financials.
Based on its Q2 financial statements/results:-
"At current market prices, the Group expects to make substantial profits from its development projects, both locally and in
Australia, due to the good margins for most of these projects.
The Property Business is expected to continue to contribute significantly to the Group’s revenue and profitability due to the
following reasons:-
First, based on the units sold in its property projects as at the date of this announcement, the Group has locked in total
revenue of about S$660 million which will be progressively recognized in accordance with the stage of construction.
Second, at current market prices, the potential sales revenue from local and overseas projects is estimated to be in excess of
S$3 billion."
Assuming a net profit margin of 15% on total potential revenue of $3 billion = $450mil net profit.
Outstanding no of shares = 1817 mil shares
Potential NAV gain ~ 25 cents.
Current book NAV = 17 cents (as of 2Q 2014)
max RNAV = 42 cents.
At current market price of 45 cents, Aspial might be "overvalued"
In addition, only $660mil revenue out of $3billion (or 22%) has been "locked in". Mr Market seems to be paying a future price for this counter...
If Mr Market is valuing CES like Aspial, CES should be trading well beyond $1.50 - $1.60 at the moment because all its RNAV (up to $1.60) has been locked in due to close to 100% sales at Alex retail mall, Junction 9, Ninth Residence and Alex Hotel is ready to TOP in mid-2015.
So, pls be aware of counters like Aspial, Wee Hur and others who are already trading at future RNAV and especially if some or most of the potential profit has not been "locked in".
Based on its Q2 financial statements/results:-
"At current market prices, the Group expects to make substantial profits from its development projects, both locally and in
Australia, due to the good margins for most of these projects.
The Property Business is expected to continue to contribute significantly to the Group’s revenue and profitability due to the
following reasons:-
First, based on the units sold in its property projects as at the date of this announcement, the Group has locked in total
revenue of about S$660 million which will be progressively recognized in accordance with the stage of construction.
Second, at current market prices, the potential sales revenue from local and overseas projects is estimated to be in excess of
S$3 billion."
Assuming a net profit margin of 15% on total potential revenue of $3 billion = $450mil net profit.
Outstanding no of shares = 1817 mil shares
Potential NAV gain ~ 25 cents.
Current book NAV = 17 cents (as of 2Q 2014)
max RNAV = 42 cents.
At current market price of 45 cents, Aspial might be "overvalued"
In addition, only $660mil revenue out of $3billion (or 22%) has been "locked in". Mr Market seems to be paying a future price for this counter...
If Mr Market is valuing CES like Aspial, CES should be trading well beyond $1.50 - $1.60 at the moment because all its RNAV (up to $1.60) has been locked in due to close to 100% sales at Alex retail mall, Junction 9, Ninth Residence and Alex Hotel is ready to TOP in mid-2015.
So, pls be aware of counters like Aspial, Wee Hur and others who are already trading at future RNAV and especially if some or most of the potential profit has not been "locked in".
(27-08-2014, 07:34 AM)revelationofpyramids Wrote: [ -> ]Yes. Just to see how the figures compares:
Aspial NAV is now 17.67 cent. Share price 44.5 cent. To trade at half of RNAV, which is what cheap prop shares like Chip Eng Seng trade at now, Aspial NAV has to go up to 90 cnet or 72 cent from all its future projects. Multiply 72 cent by 1.817 billion shares = $1.3 billion!!!
Aspial has to make $1.3 billion net future profits from all its projects in order to catch up with Chip Eng Seng!!
I think that will take 10 years maybe, assume $130 million a year. This half year it only make $40 million.