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15-05-2014, 02:51 PM
I did some face research on LTC and noted the followings:
- the core business yield about 10%, outlook in steel demand remain uncertainty due to general slowdown in private construction sector
- significant amount of profits from investment properties are unrealised as the LTC adopted a less-prudent approach in valuing the investment properties (fair value approach)
- property development contributed significant portion of profits for FY2012 and FY2013, but the future profitability remain uncertainty, a question mark as to whether necessary to provide impairment on the bungalows
Overall it is true that LTC is undervalued in some ways, but apparently it will not be easy for them to unlock the true value especially on general correction trend in property market.
On the plus side, I think LTC has been actively paying down the borrowings and I expect it will be debt-free in the coming quarter, so increased dividends.
[ not vested ]
- the core business yield about 10%, outlook in steel demand remain uncertainty due to general slowdown in private construction sector
- significant amount of profits from investment properties are unrealised as the LTC adopted a less-prudent approach in valuing the investment properties (fair value approach)
- property development contributed significant portion of profits for FY2012 and FY2013, but the future profitability remain uncertainty, a question mark as to whether necessary to provide impairment on the bungalows
Overall it is true that LTC is undervalued in some ways, but apparently it will not be easy for them to unlock the true value especially on general correction trend in property market.
On the plus side, I think LTC has been actively paying down the borrowings and I expect it will be debt-free in the coming quarter, so increased dividends.
[ not vested ]