Hock Lian Seng

[GFG]

Bring up this thread....

Recently announced wining of project over S$100Mil, but any buddies know how the sales of the Skywood, Ark@Gambas and Ark@Kaki Bukit?

Sales for skywood not good, according to caveats lodged, only ard 50 units out of 420 units launched are sold
Their partner, king wan, recorded some losses from their property division in their latest FY14Q3 results, I am assuming that comes from the skywoods project

The ark at gambas and kb though, are doing very well
Gambas is almost fully sold, and it's launched earlier
Both of these project are recorded via the COC method according to accounting rules, so I am expecting a big profit boost in FY 15Q1 when they TOP
Already, they are recording costs incurred such as commissions.

Honestly though, there are few earnings drivers for FY14.

Their marina coastal expressway and gali batu projects are completed, with minimal if any, revenue left. The changi project will only contribute after FY14.

My worry is that hls is still not GREEN AND GRACIOUS BUILDER certified. After FY14, those not certified will not get the license to tender BCA contracts.
I have emailed management about this but have yet to receive a reply

(Vested 600lots)

Wow 600 lots mean a lot, wonder if you are in the top 20 list

I don't know much about HLS but I do like companies that tender government projects, as it will be benefited be it a boom/doom economy. My concern is mainly on its development project particularly the Skywood as it was a new launch luxury project and located so so far away from town. But on the positive side, I think the 6 over percent of dividend should be sustainable.

As for the GREEN AND GRACIOUS BUILDER, obviously this is something new to me, I am not sure but since they have been working with LTA and BCA for so long, I think their chances in getting registered should be quite high. I do not think that the government would want to work with contractors that are not up to certain standards.

Anyway, thanks for your valuable information!!

Here's more information on the Green and gracious builder scheme.
It's not released by HLS, but you can find the information on BCA website.

Q: Is GGBS compulsory for me?
A: Currently, companies which wish to apply for or retain their BCA Contractors
Registry System (CRS) registration in work heads CW01 and CW02 and
financial grades from A1 to B2 are required to obtain GGBS by the following
dates:
A1 & A2: By 1 Jan 2015
B1& B2: By 1 Jan 2016

This is HLS's certification and when it expires:
CW01 General Building A1 1/7/2014
CW02 Civil Engineering A1 1/7/2014
CR08 Piling Works L5 1/7/2014
SY01A Essential Construction Materials L6 1/7/2014
SY01C Other Basic Construction Materials L6 1/7/2014


I view their A1 grades (ability to tender for any quantum worth of project) under workheads CW01 and CW02 as one of their competitive edges. Which is why I am paying attention to this lack of certification.

Still no reply from management yet regarding my query.

Management still did not reply my queries...
But i checked and noticed the licensing has been renewed. This is from the BCA website:
CW01 General Building A1 1/7/2017
CW02 Civil Engineering A1 1/7/2017
CR08 Piling Works L5 1/7/2017

They just did a 3 year renewal, and so "bypassed" the requirement for them to be "green and gracious builder" certified before they can renew. So now there's time to get certified before the next renewal in 2017. (from Jan 2015 onwards, all applicants and renewals will have to be green and gracious certified)

Also, notice they have lost their license for Building Materials:
SY01A Essential Construction Materials L6 1/7/2014
SY01C Other Basic Construction Materials L6 1/7/2014

It's not renewed.
Don't think this has a big impact though as they have not been utilising it all this while. Although with the current focus on new building materials and building techniques that are efficient, productive and green, I'm a bit disappointed to see no growth in this aspect. It seems HLS is a very traditional construction company, focussing on getting projects with protected high margins, but with minimal or no growth.

<Vested>