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Chitchat Wing Tai Gives 6 cents Dividend
- Thread starter ckmpd
- Start date
profit crumbled, and assets multiply.
http://infopub.sgx.com/FileOpen/FY2...on Slides.ashx?App=Announcement&FileID=418248
Does the divd justify,? Anyway, I never like to vest in Father/Son family biz. Good luck/
http://infopub.sgx.com/FileOpen/FY2...on Slides.ashx?App=Announcement&FileID=418248
Does the divd justify,? Anyway, I never like to vest in Father/Son family biz. Good luck/
Give dividends is to appease shareholders sometimes. Gives u the misperception that the company is doing well. If it is doing so well, then capital gain alone will have been enough.
profit down is industry wide. The fundamentals of Wing Tai is strong with NAV of $4.04 per share and trading at $1.78.
The share is trading at a huge discount to its NAV.
Dont be surprised that it is a prime privatising target just like Kep Land and Allgreen
Yup! Been holding tis couter far too long leow...
Good for you.
You must have bought it quite low and you are sitting on quite good capital gain
http://sbr.com.sg/residential-property/news/wing-tais-net-profit-sinks-98-188m#sthash.0JQWplTF.dpuf
Wing Tai's net profit sinks 98% to $1.88m
23 Aug 2016
Property developer and lifestyle company Wing Tai Holdings Ltd. has posted an overwhelming decline in its net profit for the quarter ending in June 30, 2016, with the amount diving 98% from $116 million in the previous quarter to $1.88 million.
According to the group, the slump is attributable "to the lower fair value gains on investment properties of Wing Tai Properties Limited in Hong Kong."
For the said quarter, its revenue registered a 35% pullback to $140.7 million.
On a yearly basis, the group's total revenue for the financial year sank 20% from the $676.7 million recorded the previous year to $544.5 million.
Wing Tai's net profit sinks 98% to $1.88m
23 Aug 2016
Property developer and lifestyle company Wing Tai Holdings Ltd. has posted an overwhelming decline in its net profit for the quarter ending in June 30, 2016, with the amount diving 98% from $116 million in the previous quarter to $1.88 million.
According to the group, the slump is attributable "to the lower fair value gains on investment properties of Wing Tai Properties Limited in Hong Kong."
For the said quarter, its revenue registered a 35% pullback to $140.7 million.
On a yearly basis, the group's total revenue for the financial year sank 20% from the $676.7 million recorded the previous year to $544.5 million.
Sounds like bullshit. If a company's profit decline by 98%, then surely some monkey business is going on.
lol property developers are doing like shit now in current singapore economy......better to invest in HO BEE LAND.actually get Ireit or First reit instead.
'Singin' in the Rain: Ho Bee Land Avoids Singapore's Property Market Slump
By Jane A. Peterson
Singapore developers are complaining these days about the stalled property market, but Chua Thian Poh flashes a warm, infectious smile as he enters the headquarters of his Ho Bee Land. Unlike many competitors, his mid-cap property empire is banking reasonable profits from a strong flow of rental income as he waits for a market turnaround. “We learned from the Asian financial crisis,” he explains. “Spread the risk. Don’t rely on a single market. Diversify.”
In the mid-1990s Chua was one of the first local developers to move overseas, building an impressive business that now spans Singapore, China, Australia and London. He listed Ho Bee Land in 1999, and his 74% stake constitutes the bulk of his estimated $1.2 billion fortune. This puts him on our list of Singapore’s richest for the 11th straight year–not bad for a man who dropped out of high school at age 16. “I am always looking ahead,” he says. “We have to think big and dream big. Then you will achieve.”
But lately big development dreams have been on hold in Chua’s main market, Singapore. Eight rounds of government cooling measures in seven years have taken a toll on sales. Home prices have fallen nearly 10% over the past three years, the city’s longest losing streak on record. With a persistent lack of foreign demand, developers need buyers for more than 1,700 unsold private units and some 13,000 more in the pipeline. Meanwhile, office-vacancy rates in the downtown core have risen from 5% in late 2007 to 9.1% and are expected to spike again as more offices hit the market later this year.
Ho Bee’s profits are down sharply from their 2013 high, but Chua, 68, remains a darling of investment analysts, who credit him with a canny sense of timing and say he’ll continue to outperform the sector. The main reason is Ho Bee’s strategy shift in 2010 to downplay residential property development and instead turn to buying and developing commercial properties for the recurring rental income–its sole source of revenue for 2014 and 2015.
Case in point: Ho Bee bought three rent-earning properties in London last year, boosting this year’s first-quarter revenue by nearly 20% while net profits rose 60%. “We are seeing the recurring-income strategy bearing fruit,” says Chong Hock Chang, Ho Bee’s associate director. “Our income stream is sustainable.”
Forbes Asia
Special Reports
Opinions expressed by Forbes Contributors are their own.
Forbes GuestForbes Guest, Contributor
This story appears in the August 2016 issue of Forbes Asia. Subscribe
By Jane A. Peterson
Singapore developers are complaining these days about the stalled property market, but Chua Thian Poh flashes a warm, infectious smile as he enters the headquarters of his Ho Bee Land. Unlike many competitors, his mid-cap property empire is banking reasonable profits from a strong flow of rental income as he waits for a market turnaround. “We learned from the Asian financial crisis,” he explains. “Spread the risk. Don’t rely on a single market. Diversify.”
In the mid-1990s Chua was one of the first local developers to move overseas, building an impressive business that now spans Singapore, China, Australia and London. He listed Ho Bee Land in 1999, and his 74% stake constitutes the bulk of his estimated $1.2 billion fortune. This puts him on our list of Singapore’s richest for the 11th straight year–not bad for a man who dropped out of high school at age 16. “I am always looking ahead,” he says. “We have to think big and dream big. Then you will achieve.”
But lately big development dreams have been on hold in Chua’s main market, Singapore. Eight rounds of government cooling measures in seven years have taken a toll on sales. Home prices have fallen nearly 10% over the past three years, the city’s longest losing streak on record. With a persistent lack of foreign demand, developers need buyers for more than 1,700 unsold private units and some 13,000 more in the pipeline. Meanwhile, office-vacancy rates in the downtown core have risen from 5% in late 2007 to 9.1% and are expected to spike again as more offices hit the market later this year.
Ho Bee’s profits are down sharply from their 2013 high, but Chua, 68, remains a darling of investment analysts, who credit him with a canny sense of timing and say he’ll continue to outperform the sector. The main reason is Ho Bee’s strategy shift in 2010 to downplay residential property development and instead turn to buying and developing commercial properties for the recurring rental income–its sole source of revenue for 2014 and 2015.
Case in point: Ho Bee bought three rent-earning properties in London last year, boosting this year’s first-quarter revenue by nearly 20% while net profits rose 60%. “We are seeing the recurring-income strategy bearing fruit,” says Chong Hock Chang, Ho Bee’s associate director. “Our income stream is sustainable.”
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Girding the Singapore portfolio is the Metropolis, a 23-story twin-tower office complex that opened in 2013. Owned by Ho Bee for leasing purposes only, it quickly filled with 10,000 workers. The logos for energy group Shell and consumer goods company P&G adorn the towers’ sleek, mirrored facades, and the buildings have become a landmark in the Buona Vista district, 20 minutes from the central business district.
In the plaza outside stands an awe-inspiring bronze horse, sculpted by Fernando Botero and selected by Chua. The chairman oversees operations from Tower One, level 11. He and his four-man management group, including son Nicholas, make major decisions from two white leather couches at the far end of his vast office, elegantly appointed with his collection of contemporary art. This is where they meet monthly to develop strategy, set objectives and review results. The portfolio is now roughly two-thirds commercial, compared with two-thirds residential from 1993 to 2010.
Chua’s business skills were honed in the school of hard knocks. As the fourth of 14 siblings, young Thian Poh was not “the study type,” he says. He left Serangoon Technical School at age 16, and with S$15,000 from his mother, set up his own manufacturing business that produced log rings and spikes. But when the timber industry faltered, he moved on. He sailed for Indonesia with its big population, setting up a business to import and export general merchandise. “I thought: I want to challenge myself. Not many want to go overseas–give it a try.”
His business thrived, but then he was sideswiped by a 50% devaluation of the rupiah. Just 30 years old, he fell deeply into debt. “It was a tough time to go through,” he recalls, noting that his wife and the two eldest of his now four children were living back in Singapore. “I had to still carry on, make back the money, pay back the debt.” He gives his mother, originally from China’s Fujian Province, the credit for helping him through the darkest days. “She would say, ‘Don’t be ashamed of your business failure. You didn’t swindle or rob,’ ” he recalls. “ Start over, but learn from your failures.”
Five years later the rupiah was devalued again–but this time Chua had hedged and so instead of losing money he made several million in extra profits. With those winnings he returned to Singapore, his mother’s words echoing in his ears: “If you save money you should invest in properties.” In 1987 Chua bought an industrial building in the Kallang district not far from where he grew up in a government housing flat. That eventually led to his watershed Southaven project in 1993–a residential development of 497 units at the foot of Bukit Timah Hill. “We got the right product for the market then,” he explained about his first luxury development, which he sold into a spiking market. “This was my big breakthrough.”
When Chua quit buying in Singapore to invest in London in 1996, he unwittingly protected Ho Bee just ahead of the 1997-98 Asian financial crisis. Then in 2002 he sold most of his residential projects in London to invest in China. Wanting to take advantage of a rising Asia, he first joined equity deals and then, beginning in 2009, undertook three residential joint ventures with Chinese developer Yanlord, in Shanghai and Zhuhai. “Until today we are happy with the partnership,” he says. “We leverage on their local knowledge, and it helps spread the risk.” Yanlord also applauds the relationship. “The success of these projects would not be possible without Mr. Chua’s judgment and input,” says Yanlord Chairman and Chief Executive Zhong Sheng Jian, praising him as “amicable and down-to-earth.”
Chua and his wife of 43 years, Doris, live in a quiet, leafy Bukit Timah cul-de-sac, surrounded by three of their four children, who live with them or just next door. He tries to gather the immediate family once a month, including eight grandchildren. His eldest child, daughter Siow Ling, is a school principal. His younger son, Weijie, is on sabbatical from Ho Bee and is focused on starting up his own social media tech outfit. Younger daughter Weiling manages his investments in private equity and early-stage ventures. Among them is a 38% stake in Singapore chocolate store chain The Cocoa Trees. She also helps run the Chua Foundation, which Chua and his siblings set up; it enjoys a $7.4 million endowment and helps fund local needs.
FORBES ASIA named Chua to our annual Heroes of Philanthropy roll call in 2014. One cause is Ren Ci, a community hospital and nursing home for low-income Singaporeans, where he has sat on the board for 15 years and is known to visit hospital wards after hours. On a Saturday in June, dressed in khakis and an open-collar pink shirt, his silver hair combed neatly back and peppering his speech with Singlish, he chats and jokes with his fellow board members. “He is very much the face of Ren Ci,” says CEO Loh Shu Ching. “A lot of our donors support us because they have confidence in him.”
The story is much the same at Bishan East, an electoral subdivision where Chua has served on the Citizen Consultative Committee for 19 years, attending the block parties, residents’ nights and cultural family days. And as president of the Singapore Federation of Chinese Clan Associations, he meets new residents from the mainland, urging them to take English lessons and visit other ethnic groups’ religious and cultural sites. “We hope they can integrate quickly,” he says, “and establish roots here to help contribute to the community.”
In a couple of years Chua may have more time to spend on these activities. His older son, Nicholas, also known as Wee Chern, has worked for Ho Bee for a decade and is now an associate director, responsible for marketing properties and finding opportunities. When asked whether Nicholas is being groomed to take over, Chua nods and says, “Hopefully.” By age 70, the founder hints, he may “relax more.” Does stepping down scare him? “Nothing really scares me,” he says. “I take these
in stride and find solutions to
problems.”
'Singin' in the Rain: Ho Bee Land Avoids Singapore's Property Market Slump
By Jane A. Peterson
Singapore developers are complaining these days about the stalled property market, but Chua Thian Poh flashes a warm, infectious smile as he enters the headquarters of his Ho Bee Land. Unlike many competitors, his mid-cap property empire is banking reasonable profits from a strong flow of rental income as he waits for a market turnaround. “We learned from the Asian financial crisis,” he explains. “Spread the risk. Don’t rely on a single market. Diversify.”
In the mid-1990s Chua was one of the first local developers to move overseas, building an impressive business that now spans Singapore, China, Australia and London. He listed Ho Bee Land in 1999, and his 74% stake constitutes the bulk of his estimated $1.2 billion fortune. This puts him on our list of Singapore’s richest for the 11th straight year–not bad for a man who dropped out of high school at age 16. “I am always looking ahead,” he says. “We have to think big and dream big. Then you will achieve.”
But lately big development dreams have been on hold in Chua’s main market, Singapore. Eight rounds of government cooling measures in seven years have taken a toll on sales. Home prices have fallen nearly 10% over the past three years, the city’s longest losing streak on record. With a persistent lack of foreign demand, developers need buyers for more than 1,700 unsold private units and some 13,000 more in the pipeline. Meanwhile, office-vacancy rates in the downtown core have risen from 5% in late 2007 to 9.1% and are expected to spike again as more offices hit the market later this year.
Ho Bee’s profits are down sharply from their 2013 high, but Chua, 68, remains a darling of investment analysts, who credit him with a canny sense of timing and say he’ll continue to outperform the sector. The main reason is Ho Bee’s strategy shift in 2010 to downplay residential property development and instead turn to buying and developing commercial properties for the recurring rental income–its sole source of revenue for 2014 and 2015.
Case in point: Ho Bee bought three rent-earning properties in London last year, boosting this year’s first-quarter revenue by nearly 20% while net profits rose 60%. “We are seeing the recurring-income strategy bearing fruit,” says Chong Hock Chang, Ho Bee’s associate director. “Our income stream is sustainable.”
Forbes Asia
Special Reports
Opinions expressed by Forbes Contributors are their own.
Forbes GuestForbes Guest, Contributor
This story appears in the August 2016 issue of Forbes Asia. Subscribe
By Jane A. Peterson
Singapore developers are complaining these days about the stalled property market, but Chua Thian Poh flashes a warm, infectious smile as he enters the headquarters of his Ho Bee Land. Unlike many competitors, his mid-cap property empire is banking reasonable profits from a strong flow of rental income as he waits for a market turnaround. “We learned from the Asian financial crisis,” he explains. “Spread the risk. Don’t rely on a single market. Diversify.”
In the mid-1990s Chua was one of the first local developers to move overseas, building an impressive business that now spans Singapore, China, Australia and London. He listed Ho Bee Land in 1999, and his 74% stake constitutes the bulk of his estimated $1.2 billion fortune. This puts him on our list of Singapore’s richest for the 11th straight year–not bad for a man who dropped out of high school at age 16. “I am always looking ahead,” he says. “We have to think big and dream big. Then you will achieve.”
But lately big development dreams have been on hold in Chua’s main market, Singapore. Eight rounds of government cooling measures in seven years have taken a toll on sales. Home prices have fallen nearly 10% over the past three years, the city’s longest losing streak on record. With a persistent lack of foreign demand, developers need buyers for more than 1,700 unsold private units and some 13,000 more in the pipeline. Meanwhile, office-vacancy rates in the downtown core have risen from 5% in late 2007 to 9.1% and are expected to spike again as more offices hit the market later this year.
Ho Bee’s profits are down sharply from their 2013 high, but Chua, 68, remains a darling of investment analysts, who credit him with a canny sense of timing and say he’ll continue to outperform the sector. The main reason is Ho Bee’s strategy shift in 2010 to downplay residential property development and instead turn to buying and developing commercial properties for the recurring rental income–its sole source of revenue for 2014 and 2015.
Case in point: Ho Bee bought three rent-earning properties in London last year, boosting this year’s first-quarter revenue by nearly 20% while net profits rose 60%. “We are seeing the recurring-income strategy bearing fruit,” says Chong Hock Chang, Ho Bee’s associate director. “Our income stream is sustainable.”
Recommended by Forbes
MOST POPULAR Photos: The Most Expensive Home Listing in Every State 2016
+227,299 VIEWS Apple Leak Reveals Massive iPhone 7 Cancellation
IBMVoice: How To Manage Risk In An Interconnected World
Girding the Singapore portfolio is the Metropolis, a 23-story twin-tower office complex that opened in 2013. Owned by Ho Bee for leasing purposes only, it quickly filled with 10,000 workers. The logos for energy group Shell and consumer goods company P&G adorn the towers’ sleek, mirrored facades, and the buildings have become a landmark in the Buona Vista district, 20 minutes from the central business district.
In the plaza outside stands an awe-inspiring bronze horse, sculpted by Fernando Botero and selected by Chua. The chairman oversees operations from Tower One, level 11. He and his four-man management group, including son Nicholas, make major decisions from two white leather couches at the far end of his vast office, elegantly appointed with his collection of contemporary art. This is where they meet monthly to develop strategy, set objectives and review results. The portfolio is now roughly two-thirds commercial, compared with two-thirds residential from 1993 to 2010.
Chua’s business skills were honed in the school of hard knocks. As the fourth of 14 siblings, young Thian Poh was not “the study type,” he says. He left Serangoon Technical School at age 16, and with S$15,000 from his mother, set up his own manufacturing business that produced log rings and spikes. But when the timber industry faltered, he moved on. He sailed for Indonesia with its big population, setting up a business to import and export general merchandise. “I thought: I want to challenge myself. Not many want to go overseas–give it a try.”
His business thrived, but then he was sideswiped by a 50% devaluation of the rupiah. Just 30 years old, he fell deeply into debt. “It was a tough time to go through,” he recalls, noting that his wife and the two eldest of his now four children were living back in Singapore. “I had to still carry on, make back the money, pay back the debt.” He gives his mother, originally from China’s Fujian Province, the credit for helping him through the darkest days. “She would say, ‘Don’t be ashamed of your business failure. You didn’t swindle or rob,’ ” he recalls. “ Start over, but learn from your failures.”
Five years later the rupiah was devalued again–but this time Chua had hedged and so instead of losing money he made several million in extra profits. With those winnings he returned to Singapore, his mother’s words echoing in his ears: “If you save money you should invest in properties.” In 1987 Chua bought an industrial building in the Kallang district not far from where he grew up in a government housing flat. That eventually led to his watershed Southaven project in 1993–a residential development of 497 units at the foot of Bukit Timah Hill. “We got the right product for the market then,” he explained about his first luxury development, which he sold into a spiking market. “This was my big breakthrough.”
When Chua quit buying in Singapore to invest in London in 1996, he unwittingly protected Ho Bee just ahead of the 1997-98 Asian financial crisis. Then in 2002 he sold most of his residential projects in London to invest in China. Wanting to take advantage of a rising Asia, he first joined equity deals and then, beginning in 2009, undertook three residential joint ventures with Chinese developer Yanlord, in Shanghai and Zhuhai. “Until today we are happy with the partnership,” he says. “We leverage on their local knowledge, and it helps spread the risk.” Yanlord also applauds the relationship. “The success of these projects would not be possible without Mr. Chua’s judgment and input,” says Yanlord Chairman and Chief Executive Zhong Sheng Jian, praising him as “amicable and down-to-earth.”
Chua and his wife of 43 years, Doris, live in a quiet, leafy Bukit Timah cul-de-sac, surrounded by three of their four children, who live with them or just next door. He tries to gather the immediate family once a month, including eight grandchildren. His eldest child, daughter Siow Ling, is a school principal. His younger son, Weijie, is on sabbatical from Ho Bee and is focused on starting up his own social media tech outfit. Younger daughter Weiling manages his investments in private equity and early-stage ventures. Among them is a 38% stake in Singapore chocolate store chain The Cocoa Trees. She also helps run the Chua Foundation, which Chua and his siblings set up; it enjoys a $7.4 million endowment and helps fund local needs.
FORBES ASIA named Chua to our annual Heroes of Philanthropy roll call in 2014. One cause is Ren Ci, a community hospital and nursing home for low-income Singaporeans, where he has sat on the board for 15 years and is known to visit hospital wards after hours. On a Saturday in June, dressed in khakis and an open-collar pink shirt, his silver hair combed neatly back and peppering his speech with Singlish, he chats and jokes with his fellow board members. “He is very much the face of Ren Ci,” says CEO Loh Shu Ching. “A lot of our donors support us because they have confidence in him.”
The story is much the same at Bishan East, an electoral subdivision where Chua has served on the Citizen Consultative Committee for 19 years, attending the block parties, residents’ nights and cultural family days. And as president of the Singapore Federation of Chinese Clan Associations, he meets new residents from the mainland, urging them to take English lessons and visit other ethnic groups’ religious and cultural sites. “We hope they can integrate quickly,” he says, “and establish roots here to help contribute to the community.”
In a couple of years Chua may have more time to spend on these activities. His older son, Nicholas, also known as Wee Chern, has worked for Ho Bee for a decade and is now an associate director, responsible for marketing properties and finding opportunities. When asked whether Nicholas is being groomed to take over, Chua nods and says, “Hopefully.” By age 70, the founder hints, he may “relax more.” Does stepping down scare him? “Nothing really scares me,” he says. “I take these
in stride and find solutions to
problems.”
Wing Tai Holdings Ltd: Underwhelming results within expectations
Wing Tai reported a FY16 (ending June 2016) PATMI of S$7.1m, which was 95% lower YoY mainly due to weaker contributions from its property development business, lower fair value gains on investment properties and the absence of a one-time divestment gain in FY15.
In terms of the topline, FY16 revenues also decreased 20% YoY to S$544.5m and were mostly derived from progressive sales from The Tembusu, additional units sold in Le Nouvel Ardmore in Singapore, The Lakeview in China and also Phase 2 of Jesselton Hills in Penang.
We had expected significantly weaker profits from the group due to challenging market conditions and judge FY16 results to be broadly within expectations. The group has proposed a total dividend of 6.0 S-cents (3 S-cents first and final dividend and 3 S-cents special dividend), up from 3.0 S-cents in the previous year. Given softer residential assumptions in our model, our fair value estimate dips to S$2.37 (versus S$2.43 previously).
Maintain BUY with fair value estimate dipping to S$2.37.
(Eli Lee)
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