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HPL is looking good.
On the 8th Aug when I first mentioned about it, it was trading at 2.61 and now it's passing at 2.81.
Sakari - Take Over
- Thread starter Merl Haggard
- Start date
HPL is looking good.
On the 8th Aug when I first mentioned about it, it was trading at 2.61 and now it's passing at 2.81.
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Yes heard about STX too, but not much juice left.
HPL's nta is around $4.58.
HPL's nta is around $4.58.
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MH, duffer on this sort of stuff -but have some Cerebros (feed monkeys) languishing in my CPF for eons. Never worried on longer horizon, as it's not fluffy stock with real economy (unlike some others built on lesser ground). Heard from OC last month alleging some takeover. Can see up development over last month up 655/555
cerebos pacific ltd (CER) Snapshot
Open$6.55 Previous Close$6.55
Day High$6.56 Day Low$6.55
52 Week High08/16/12 - $6.59 52 Week Low10/5/11 - $4.38
Market Cap2.1B Average Volume 10 Days58.5K
EPS TTM$0.32 Shares Outstanding317.3M
EX-Date05/7/12 P/E TM20.2x
Dividend$0.06 Dividend Yield3.82%
cerebos pacific ltd (CER) Snapshot
Open$6.55 Previous Close$6.55
Day High$6.56 Day Low$6.55
52 Week High08/16/12 - $6.59 52 Week Low10/5/11 - $4.38
Market Cap2.1B Average Volume 10 Days58.5K
EPS TTM$0.32 Shares Outstanding317.3M
EX-Date05/7/12 P/E TM20.2x
Dividend$0.06 Dividend Yield3.82%
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me oso got heard tis ... did a quik calculation ... seems like deal 2 b @ ~1.9 leh ...
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tis 1 offered @ 6.6 ...
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ok 'fess up, who's who at the old shareinvestor forum? 
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Risk appetite returns as QE3 rolls out.
Global stock markets will surge till Nov presidential election.
Make hay while the sun shines.
Global stock markets will surge till Nov presidential election.
Make hay while the sun shines.
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Hi MerL, care to expLain from a Layman's view on the current Thaibev takeover saga ?..i was trying v hard
to comprehend the whoLe issue; but tiLL date stiLL catch-no-baLL..
ThBev is making a GO for F & N at $8.88. There is an even chance that they will gain control of F & N and frustrate the sale of APB to Heineken.
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agree that qe3 will loosen wall street vagina and let the cum flow till the morning after 1st tuesday of november.
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buy wat bestest? ...
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Commodity counters like Noble, Olam, Wilmar.
Also don't forget HPL and SGX.
Stay short on USD.
As usual, caveat emptor applies.
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Spotlight falls on low-profile Hotel Properties
Ven Sreenivasan
13 September 2012
The recent successful listing of Far East Hospitality Trust (FEHT) - which attracted a subscription rate of over 30 times - has thrown the spotlight on the somewhat low-profile and under-researched Hotel Properties Ltd (HPL).
In a July 12 Maybank-Kim Eng report, analyst Alison Fok noted that Orchard Parade Holdings’ spin-off of Orchard Parade Hotel into Far East Hospitality had yielded a gain of $702 million for the listed entity. Turning to HPL’s own significant asset holdings - including two prime hotels in the Orchard Road belt - her report concluded that there was a huge “undervaluation of HPL’s assets in the Orchard Road area”.
Not surprisingly, activity in HPL’s stock has picked up significantly, with the counter now surpassing Ms Fok’s own target price of $2.75.
FEHT effectively encapsulates Far East group’s assets worth some $1.5 billion, re-valuing its 388-room Orchard Parade Hotel, which has a lease of 50 years, at $1.1 million per room key.
HPL’s own properties include the freehold Hilton Hotel, the 999-year leasehold Four Seasons Hotel and the 99-year leasehold Concord Hotel. Its other properties include the freehold Forum mall next to the Hilton, HPL House and Ming Arcade at Cuscaden Road, and the Concorde Shopping Mall. On the residential front, there is the 36-storey Tomlinson Heights, and shares in The Interlace and d’Leedon. It will soon be launching Beverly Mai, which was bought some six years ago. It also has about two dozen other good-class properties, comprising predominantly hotels, in Malaysia, Maldives, Thailand and Indonesia.
HPL has never re-valued its books to account for the appreciation of its properties, which were mostly bought in the 1980s and 1990s.
The FEHT restructuring and listing valued Orchard Parade Hotel at $1.1 million per room key. Applying a conservative 20 per cent premium to this valuation - to account for the fact that HPL’s hotels have much longer leases - would yield a valuation of $1.32 million per room key. Applying this to its three Singapore hotels - comprising 1,083 rooms - would place their value at about $1.43 billion.
HPL carries the three hotels in its books for some $440 million, or about 28 per cent of the value of total assets. So a revaluation would give HPL a potential realisable one-off gain of almost $1 billion.
As at June 2012, the net book value per HPL share was $3.08. Going by the current market prices, this should be at least 2.5 times higher, at $7.70 per share.
The under-valuation is glaring.
But even setting aside the re-valuation proposition, there are two more potential scenarios for HPL.
HPL’s properties - comprising its two prime hotels, Forum and HPL House - sit on a 2-hectare tract of land straddling the prime Orchard Road belt. At the western tip stands Wheelock Place, owned by the Wheelock group which controls 20 per cent of HPL. Also, there is the Anguilla Carpark, which sits between Four Seasons Hotel and Wheelock Place.
There has long been market speculation that at some point in time, sleepy HPL will stir from its slumber and look at redeveloping its Orchard properties. Such a redevelopment master plan could envisage the tearing down, relocation and rebuilding of all the existing HPL properties on Orchard Road into a contiguous lifestyle, shopping, hotel and residential development stretching from Cuscaden Road to Anguilla Park. Analysts estimate that such a redevelopment would yield a gross floor area of more than 1 million square feet and a market value well in excess of $2 billion, or $4 per share.
But HPL has shown little inclination so far to do much more than sit patiently on its precious assets.
However, market circumstances in Singapore have changed dramatically over the past decade. Today, Singapore is much more cosmopolitan and crowded. Could that prompt a strategy rethink within the company?
If not, there is always the potential that its elusive controlling shareholder, Ong Beng Seng (who together with his family owns 45 per cent), could initiate a privatisation of the company. Another 41 per cent is tightly controlled by another 20 shareholders, including 20 per cent held by Wheelock group.
The latter certainly has enough cash to support a privatisation. Privatisations have been the rage lately for undervalued, under-appreciated and tightly controlled companies.
Given the fast-evolving market conditions, the folks running HPL will have to decide - sooner, rather than later - what to do about its hugely undervalued but precious assets. Mr. Ong is one of Singapore’s - if not the world’s - most savvy and best-connected businessmen. When he makes his move, the market will move with him.
Ven Sreenivasan
13 September 2012
The recent successful listing of Far East Hospitality Trust (FEHT) - which attracted a subscription rate of over 30 times - has thrown the spotlight on the somewhat low-profile and under-researched Hotel Properties Ltd (HPL).
In a July 12 Maybank-Kim Eng report, analyst Alison Fok noted that Orchard Parade Holdings’ spin-off of Orchard Parade Hotel into Far East Hospitality had yielded a gain of $702 million for the listed entity. Turning to HPL’s own significant asset holdings - including two prime hotels in the Orchard Road belt - her report concluded that there was a huge “undervaluation of HPL’s assets in the Orchard Road area”.
Not surprisingly, activity in HPL’s stock has picked up significantly, with the counter now surpassing Ms Fok’s own target price of $2.75.
FEHT effectively encapsulates Far East group’s assets worth some $1.5 billion, re-valuing its 388-room Orchard Parade Hotel, which has a lease of 50 years, at $1.1 million per room key.
HPL’s own properties include the freehold Hilton Hotel, the 999-year leasehold Four Seasons Hotel and the 99-year leasehold Concord Hotel. Its other properties include the freehold Forum mall next to the Hilton, HPL House and Ming Arcade at Cuscaden Road, and the Concorde Shopping Mall. On the residential front, there is the 36-storey Tomlinson Heights, and shares in The Interlace and d’Leedon. It will soon be launching Beverly Mai, which was bought some six years ago. It also has about two dozen other good-class properties, comprising predominantly hotels, in Malaysia, Maldives, Thailand and Indonesia.
HPL has never re-valued its books to account for the appreciation of its properties, which were mostly bought in the 1980s and 1990s.
The FEHT restructuring and listing valued Orchard Parade Hotel at $1.1 million per room key. Applying a conservative 20 per cent premium to this valuation - to account for the fact that HPL’s hotels have much longer leases - would yield a valuation of $1.32 million per room key. Applying this to its three Singapore hotels - comprising 1,083 rooms - would place their value at about $1.43 billion.
HPL carries the three hotels in its books for some $440 million, or about 28 per cent of the value of total assets. So a revaluation would give HPL a potential realisable one-off gain of almost $1 billion.
As at June 2012, the net book value per HPL share was $3.08. Going by the current market prices, this should be at least 2.5 times higher, at $7.70 per share.
The under-valuation is glaring.
But even setting aside the re-valuation proposition, there are two more potential scenarios for HPL.
HPL’s properties - comprising its two prime hotels, Forum and HPL House - sit on a 2-hectare tract of land straddling the prime Orchard Road belt. At the western tip stands Wheelock Place, owned by the Wheelock group which controls 20 per cent of HPL. Also, there is the Anguilla Carpark, which sits between Four Seasons Hotel and Wheelock Place.
There has long been market speculation that at some point in time, sleepy HPL will stir from its slumber and look at redeveloping its Orchard properties. Such a redevelopment master plan could envisage the tearing down, relocation and rebuilding of all the existing HPL properties on Orchard Road into a contiguous lifestyle, shopping, hotel and residential development stretching from Cuscaden Road to Anguilla Park. Analysts estimate that such a redevelopment would yield a gross floor area of more than 1 million square feet and a market value well in excess of $2 billion, or $4 per share.
But HPL has shown little inclination so far to do much more than sit patiently on its precious assets.
However, market circumstances in Singapore have changed dramatically over the past decade. Today, Singapore is much more cosmopolitan and crowded. Could that prompt a strategy rethink within the company?
If not, there is always the potential that its elusive controlling shareholder, Ong Beng Seng (who together with his family owns 45 per cent), could initiate a privatisation of the company. Another 41 per cent is tightly controlled by another 20 shareholders, including 20 per cent held by Wheelock group.
The latter certainly has enough cash to support a privatisation. Privatisations have been the rage lately for undervalued, under-appreciated and tightly controlled companies.
Given the fast-evolving market conditions, the folks running HPL will have to decide - sooner, rather than later - what to do about its hugely undervalued but precious assets. Mr. Ong is one of Singapore’s - if not the world’s - most savvy and best-connected businessmen. When he makes his move, the market will move with him.
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