Khong Guan

27 November, 2015 - Stocks with Momentum : Khong Guan Flour Milling
http://sdb.theedgemarkets.com/2015/SMR/S...hc7eqn.pdf

http://www.straitstimes.com/business/kho...p-for-sale

The property has been fully utilised with an existing gross floor area at 57,019 sq ft or an equivalent plot ratio of 2.7, and is being leased by multiple tenants.

The firm noted that a number of industrial buildings in the area have changed hands in recent years, including one at 62 Burn Road (TSH Building) this month, which was sold at $16.1 million, or $679 per sq ft on gross floor area.

Rough calculation if Khong Guan building to be sold at the same price: 57019 x 679 = 38 mils. According to the latest AR, the freehold building has no value in the accounts(???). The piece of Freehold land where the building sitting on has a book value of 4 mils (Fair value @ 2014 is 12.5 mils, land only).

Outstanding share of Khong Guan is 26 mils, so the company is going to book 38/26 = $1.46 / share, should the building to be sold at the assumptive value above.

 Current price is 1.93..Super undervalued? or Value trap? 

Value trap, like ap oil, make money but tiny dividend only, boss not interested share with opmi.

Sent from my MotoG3 using Tapatalk

agreed, value trapped...

So why do they still want to list and pay fee annually to SGX ?

(26-07-2016, 01:48 PM)corydorus Wrote: So why do they still want to list and pay fee annually to SGX ?

The management too lazy to do any changes? lots of their money was put in FD, they don't even bother to expand their core business....so just let it be....

(26-07-2016, 03:12 PM)desmondxyz Wrote:

(26-07-2016, 01:48 PM)corydorus Wrote: So why do they still want to list and pay fee annually to SGX ?

The management too lazy to do any changes? lots of their money was put in FD, they don't even bother to expand their core business....so just let it be....

This question can be easily answered by putting yourself in the SSH's shoes.

(1) Everyone wants to pay 50cents for a dollar's worth. SSH possesses information asymmetry (over the OPMI) and so no action most probably is a vote that there isn't a chance (yet?) to pick a bargain by going private.
(2) Been listed provides a liquidity connection to capital markets. If it is not hard to rationalize paying the listing costs like that of maintaining a credit line with the banks, then why not?

Then Structure is broken cause there is no incentive for SSH to improve and innovate. Someone must be able and incentivize enough to change it. With $23m in cash, FD and short term investment, excluding other non-current investment, post sale of building will account for the entire market cap.

With next to zero depreciation cost, I don't even need to look at the numbers to imagine where the dough (pun intended) all went to, directly or indirectly. It's a well known brand that can last to the next generation.

Just keep milking... unless the parent is in need of money or some family "events".

(27-07-2016, 11:30 AM)specuvestor Wrote: Then Structure is broken cause there is no incentive for SSH to improve and innovate. Someone must be able and incentivize enough to change it. With $23m in cash, FD and short term investment, excluding other non-current investment, post sale of building will account for the entire market cap.

With next to zero depreciation cost, I don't even need to look at the numbers to imagine where the dough (pun intended) all went to, directly or indirectly. It's a well known brand that can last to the next generation.

Just keep milking... unless the parent is in need of money or some family "events".

how many partners does the patriarch has?

(27-07-2016, 11:30 AM)specuvestor Wrote: Then Structure is broken cause there is no incentive for SSH to improve and innovate. Someone must be able and incentivize enough to change it. With $23m in cash, FD and short term investment, excluding other non-current investment, post sale of building will account for the entire market cap.

With next to zero depreciation cost, I don't even need to look at the numbers to imagine where the dough (pun intended) all went to, directly or indirectly. It's a well known brand that can last to the next generation.

Just keep milking... unless the parent is in need of money or some family "events".

Maybe the sale of this building is considered a significant event to unlock value, if they really bochap, then they don't even bother to sell....