Low Keng Huat (Singapore)

[greengiraffe]

LKH - Beacon Amidst The Storm

In midst of negative sentiment towards Singapore based property counters, let us revisit LKH.

LKH is well positioned to ride out the oncoming storm in the local property sector:

i) Steep discount to RNAV estimated in excess of $1.00, possibly to $1.20;

ii) above average sustainable dividend yield of 6.15 cents (based on historical 4 cents) with a view of upside due to strong operating cashflow over the next few years;

iii) locked in net cash hoard with projects well sold - Minton 100%, PL Sq office (>90%), Parkland Residence EC (>87%)

iv) stable and growing stream of recurrent income - near full occupancy Hotel in Perth and upcoming rental income from PL Sq retail

v) development potential of dirt cheap landbank in JB and KL.

With an excellent track record of sniffing out and undertaking developments in Singapore with strong in house construction capabilities, the pending shakeout in domestic property sector may yet present LKH with emerging opportunities to recycle their cash hoard from well locked in projects highlighted above.

Failing to recycle the cash hoard, there is always an option of delisted parent company General Corp to replicate another delisting option for LKH to extract full value. Noted that the Low family currently owns in excess of 75% stake in LKH.

Vested

Sorry, just asking... the gearing level doesn't bother you?? Is there sometime I am missing?

Er, when you presell everything and just waiting for TOP to hand over keys and collect proceeds - still got gearing meh?