Source : The Business Times, January 11, 2008
Construction division remains key growth driver, contributing 90% to revenue.
CONSTRUCTION outfit Lian Beng Group has achieved a near quadrupling in net profit for the six months ended Nov 30, 2007.
Its first-half net income attributable to equity-holders was a record $8.06 million, up from $2.2 million for the corresponding period of 2006. This was due mainly to improved takings from its construction business. Revenue for the six months rose 23 per cent to $106.3 million. Earnings per share came to 1.72 cents, up from 0.48.
‘The past half year has been very exciting, after a dry spell that lasted about 10 years,’ said Lian Beng’s managing director Ong Pang Aik. ‘We managed to secure some interesting contracts, and were able to take advantage of the construction boom to expand our business activities.’
The group said its strong half-year results were due largely to better margins from its construction services, and higher revenue recognition from the progressive completion of construction projects.
Lian Beng said its construction division continued to be its key growth driver - contributing more than 90 per cent to its revenue. The remaining 10 per cent came from the engineering and leasing, and property development divisions.
The significant construction contracts that were added to Lian Beng’s order book during the half-year included condominium developments at Toh Tuck Road and Simon Road.
The group expects the outlook for the construction and property sectors to remain relatively robust in the next six to 12 months. Lian Beng’s construction order book stands at some $608 million to date.
‘We will maintain our strategy of selectively tendering for larger scale construction projects in both the public and private sector, and will gradually strengthen our property development arm via suitable acquisitions and strategic alliances,’ Mr Ong said.
Lian Beng shares closed 4.5 cents down at 74 cents yesterday.
Friday, January 11, 2008
Eng Wah Shares Soar To Record High
Source : The Straits Times, Jan 11, 2008
CINEMA group Eng Wah Organisation’s share price shot up by 16.5 cents to 85 cents - an all-time high - on news that its portfolio of properties was up for sale.
The counter went as high as 91 cents during the day.
Eng Wah’s properties could be worth as much as $190 million so, based on the 150 million shares in the market, shareholders could get as much as $1.20 in cash per share if all the cash proceeds were distributed.
The group announced in May that it would buy the business of Japanese pharmaceutical firm Transcutaneous Technologies (TTI) by issuing new shares to TTI shareholders. Existing assets of Eng Wah would be sold off, with practically all of the proceeds going back to the shareholders.
Yesterday, Ms Goh Min Yen, Eng Wah’s managing director, reiterated that the asset disposal had always been part of the deal.
Still, a report unveiling details of the sale of the properties by marketing agent Jones Lang LaSalle breathed life into the counter.
Kim Eng Research calculated that each share’s fair value is $1.70. That means even after the jump to 85 cents, the shares look undervalued.
The assets up for sale are the Toa Payoh Entertainment Centre, Jubilee Theatre at Ang Mo Kio, the former Mandarin Theatre at Kallang Bahru, Empress Theatre at Clementi and the 16th floor of Orchard Towers.
CINEMA group Eng Wah Organisation’s share price shot up by 16.5 cents to 85 cents - an all-time high - on news that its portfolio of properties was up for sale.
The counter went as high as 91 cents during the day.
Eng Wah’s properties could be worth as much as $190 million so, based on the 150 million shares in the market, shareholders could get as much as $1.20 in cash per share if all the cash proceeds were distributed.
The group announced in May that it would buy the business of Japanese pharmaceutical firm Transcutaneous Technologies (TTI) by issuing new shares to TTI shareholders. Existing assets of Eng Wah would be sold off, with practically all of the proceeds going back to the shareholders.
Yesterday, Ms Goh Min Yen, Eng Wah’s managing director, reiterated that the asset disposal had always been part of the deal.
Still, a report unveiling details of the sale of the properties by marketing agent Jones Lang LaSalle breathed life into the counter.
Kim Eng Research calculated that each share’s fair value is $1.70. That means even after the jump to 85 cents, the shares look undervalued.
The assets up for sale are the Toa Payoh Entertainment Centre, Jubilee Theatre at Ang Mo Kio, the former Mandarin Theatre at Kallang Bahru, Empress Theatre at Clementi and the 16th floor of Orchard Towers.
River Valley High To Get $79m Campus In Jurong
Source : The Straits Times, Jan 11, 2008
To be ready in 2010, it will be one of the largest and most expensive govt schools
RIVER Valley High's new $79 million campus in Jurong - boasting full facilities for its six-year integrated programme - will be one of the largest and most expensive government schools.
PHOTO SOURCE : MOE
The 7.64ha campus, at the junction of Jalan Boon Lay and Boon Lay Avenue, will welcome its first batch of students in 2010.
It will cater to 2,500 students from Secondary 1 to Junior College Year 2.
River Valley High, which will offer a six-year integrated programme, now has 1,600 students from Secondary 1 to Secondary 4 at its current location in Malan Road, off Alexandra Road.
The new campus will include a hostel for 500 students (below, artist's impression) for its upcoming boarding programme.
Principal Ek Soo Ben expects all students to stay in the hostel at some point in their six years there.
She also wants to open it to their foreign partner schools as part of learning exchanges.
'With a hostel, we can have learning symposiums for foreign partner schools and their students can work on meaningful projects together with our students,' she said.
Apart from standard facilities like 50 classrooms, two lecture theatres, an indoor sports hall and a big canteen, the school will also have non-standard ones like a performing arts theatre and special science laboratories.
The school will have to raise about $1.2 million to $1.5 million for these non-standard facilities.
As the school is the West Zone Centre of Excellence for Science and Technology, its six special science labs will have up-to-date facilities for photonics, mechatronics, analytical chemistry and molecular biology.
Being a Special Assistance Plan school with a strong Chinese tradition, the new building's design will take in elements of Chinese heritage.
This motif will, for instance, be incorporated into the 'meandering walkways and six courtyards', each with a different theme, such as science, design and performance.
The design will also have learning and social interaction spaces. For instance, the science courtyard will have an eco-trail and the performance courtyard will encourage music jam sessions and outdoor performances.
Students said they were excited about the prospect of moving to a new campus.
Secondary 4 student Lim Ze Ming, 16, who is a 400m runner, said: 'Now, we can only do strength training in the gym when it rains. An indoor sports hall will allow for training regardless of the weather.'
To be ready in 2010, it will be one of the largest and most expensive govt schools
RIVER Valley High's new $79 million campus in Jurong - boasting full facilities for its six-year integrated programme - will be one of the largest and most expensive government schools.
PHOTO SOURCE : MOEThe 7.64ha campus, at the junction of Jalan Boon Lay and Boon Lay Avenue, will welcome its first batch of students in 2010.
It will cater to 2,500 students from Secondary 1 to Junior College Year 2.
River Valley High, which will offer a six-year integrated programme, now has 1,600 students from Secondary 1 to Secondary 4 at its current location in Malan Road, off Alexandra Road.
The new campus will include a hostel for 500 students (below, artist's impression) for its upcoming boarding programme.
Principal Ek Soo Ben expects all students to stay in the hostel at some point in their six years there.
She also wants to open it to their foreign partner schools as part of learning exchanges.
'With a hostel, we can have learning symposiums for foreign partner schools and their students can work on meaningful projects together with our students,' she said.
Apart from standard facilities like 50 classrooms, two lecture theatres, an indoor sports hall and a big canteen, the school will also have non-standard ones like a performing arts theatre and special science laboratories.
The school will have to raise about $1.2 million to $1.5 million for these non-standard facilities.
As the school is the West Zone Centre of Excellence for Science and Technology, its six special science labs will have up-to-date facilities for photonics, mechatronics, analytical chemistry and molecular biology.
Being a Special Assistance Plan school with a strong Chinese tradition, the new building's design will take in elements of Chinese heritage.
This motif will, for instance, be incorporated into the 'meandering walkways and six courtyards', each with a different theme, such as science, design and performance.
The design will also have learning and social interaction spaces. For instance, the science courtyard will have an eco-trail and the performance courtyard will encourage music jam sessions and outdoor performances.
Students said they were excited about the prospect of moving to a new campus.
Secondary 4 student Lim Ze Ming, 16, who is a 400m runner, said: 'Now, we can only do strength training in the gym when it rains. An indoor sports hall will allow for training regardless of the weather.'
Plunge In Key Interest Rate May Lead To Cheaper Home Loans
Source : The Straits Times, Jan 10, 2008
Interbank lending rate drops to lowest in three years and is expected to fall further by mid-year
HOMEBUYERS could be in for some cheer in the coming months after a recent plunge in a crucial interest rate that indirectly determines how banks set mortgages.
The three-month Singapore interbank offered rate (Sibor), as it is called, has hit its lowest level since February 2005 and is expected to sink further by the middle of the year.
It is significant as the Sibor is the rate at which banks lend cash to each other and thus influences what consumers pay on loans such as mortgages.
It hit 1.7625 per cent yesterday, down about 0.8 percentage point in a fortnight, and the lowest since the 1.75 per cent level nearly three years ago.
With banks getting cheaper money, it is expected that homebuyers could benefit in turn from cheaper mortgages, although there is usually a lag between Sibor and consumer loan rate movements.
Citigroup economist Chua Hak Bin said: 'Mortgage rates could head lower in two months.'
But a Sibor fall is bad news for savers as fixed deposit rates could drop too.
Economists say the Sibor's sharp dip is due to recent interest rate cuts in the United States - with more likely to come later this month, huge capital inflows into Singapore and poor stock market sentiment, which have prompted investors to leave more money in the bank.
CIMB-GK economist Song Seng Wun said: 'The Sibor's plunge corresponds with the recent sharp decline in US interest rates and the expectation of more cuts.
'People have started 2008 with plenty of uncertainty, and are holding on to more cash and being more risk-averse.'
OCBC economist Selena Ling added: 'It's due to foreign funds coming in, seeking refuge from the weakening US dollar, and the recent plunges in the equity market.'
The US Federal Reserve has cut key interest rates from 5.25 per cent to 4.25 per cent in recent months.
Market experts predict a further 50-basis point cut later this month as part of moves to avert a possible recession.
Economists expect the Sibor to remain soft, due to the likelihood of further rate cuts and the cautious equity market sentiment.
Dr Chua said: 'We expect the Sibor to fall by a further 30 to 50 basis points by mid-year, especially if the Fed cuts rates by 75 basis points by the end of the second quarter.'
While home owners welcome a Sibor fall, banks dread it.
It affects their net interest margins because most of their Singdollar corporate and small business loans are linked to the Sibor.
A Deutsche Bank analyst report noted: 'This plunge is of concern, as we estimate that a 25 basis point fall in the Sibor will eventually lead to a fall in earnings per share of 4 per cent for DBS Group Holdings, 2 per cent for United Overseas Bank and 1 per cent for OCBC Bank.'
And savers will get belted too. Low interest rates combined with the high inflation now building up in Singapore spell 'negative real interest rates' - the interest earned on savings will not be able to offset the rise in prices.
Mr Song said: 'It's a sign for people not to keep money in the bank, as savers lose out.
'It's a good period to borrow, as there is more incentive for people to take money out rather than put it in.'
Thus, Dr Chua advocates that 'some diversification away might be prudent'.
He suggested alternative instruments such as real estate investment trusts, utility stocks and foreign currency fixed deposits, which offer higher rates, to hedge against inflation risk.
Interbank lending rate drops to lowest in three years and is expected to fall further by mid-year
HOMEBUYERS could be in for some cheer in the coming months after a recent plunge in a crucial interest rate that indirectly determines how banks set mortgages.
The three-month Singapore interbank offered rate (Sibor), as it is called, has hit its lowest level since February 2005 and is expected to sink further by the middle of the year.
It is significant as the Sibor is the rate at which banks lend cash to each other and thus influences what consumers pay on loans such as mortgages.
It hit 1.7625 per cent yesterday, down about 0.8 percentage point in a fortnight, and the lowest since the 1.75 per cent level nearly three years ago.
With banks getting cheaper money, it is expected that homebuyers could benefit in turn from cheaper mortgages, although there is usually a lag between Sibor and consumer loan rate movements.
Citigroup economist Chua Hak Bin said: 'Mortgage rates could head lower in two months.'
But a Sibor fall is bad news for savers as fixed deposit rates could drop too.
Economists say the Sibor's sharp dip is due to recent interest rate cuts in the United States - with more likely to come later this month, huge capital inflows into Singapore and poor stock market sentiment, which have prompted investors to leave more money in the bank.
CIMB-GK economist Song Seng Wun said: 'The Sibor's plunge corresponds with the recent sharp decline in US interest rates and the expectation of more cuts.
'People have started 2008 with plenty of uncertainty, and are holding on to more cash and being more risk-averse.'
OCBC economist Selena Ling added: 'It's due to foreign funds coming in, seeking refuge from the weakening US dollar, and the recent plunges in the equity market.'
The US Federal Reserve has cut key interest rates from 5.25 per cent to 4.25 per cent in recent months.
Market experts predict a further 50-basis point cut later this month as part of moves to avert a possible recession.
Economists expect the Sibor to remain soft, due to the likelihood of further rate cuts and the cautious equity market sentiment.
Dr Chua said: 'We expect the Sibor to fall by a further 30 to 50 basis points by mid-year, especially if the Fed cuts rates by 75 basis points by the end of the second quarter.'
While home owners welcome a Sibor fall, banks dread it.
It affects their net interest margins because most of their Singdollar corporate and small business loans are linked to the Sibor.
A Deutsche Bank analyst report noted: 'This plunge is of concern, as we estimate that a 25 basis point fall in the Sibor will eventually lead to a fall in earnings per share of 4 per cent for DBS Group Holdings, 2 per cent for United Overseas Bank and 1 per cent for OCBC Bank.'
And savers will get belted too. Low interest rates combined with the high inflation now building up in Singapore spell 'negative real interest rates' - the interest earned on savings will not be able to offset the rise in prices.
Mr Song said: 'It's a sign for people not to keep money in the bank, as savers lose out.
'It's a good period to borrow, as there is more incentive for people to take money out rather than put it in.'
Thus, Dr Chua advocates that 'some diversification away might be prudent'.
He suggested alternative instruments such as real estate investment trusts, utility stocks and foreign currency fixed deposits, which offer higher rates, to hedge against inflation risk.
Clementi Shopping Mall Put Up For Sale
Source : The Straits Times, Jan 11, 2008
A SHOPPING mall directly opposite the Clementi MRT Station has been put on the market by property firm Jones Lang LaSalle (JLL).
JLL is inviting expressions of interest for CityVibe, a retail and entertainment building known for a McDonald's fast-food outlet on the first floor and a cinema that used to be upstairs. The cinema has since been replaced by a Party World KTV branch.
The whole building will undergo reconstruction after the Chinese New Year.
But the owner - Mr Victor Boh of Grandview, linked to Wint Thai Trading - is seeking buyers for the three-storey mall, even as it is being upgraded.
The reconstruction was 'planned some time back but approval was granted only last year', explained Mr Derek Wong, the senior manager of investments at JLL.
Mr Boh decided to go ahead with the upgrading, expected to be completed in November, but was 'serious about selling if it can fetch a good price', added Mr Wong.
Although JLL would not disclose an indicative price, experts said the property could fetch more than $130 million, or over $3,000 per sq ft of gross floor area.
This would give a rental yield of at least 5 per cent, based on JLL's projection of $8.4 million in gross annual rental income.
The mall, which has about 70 years left on its lease, has a site area of 15,597 sq ft and a net lettable area of about 26,581 sq ft. It is to be rebuilt into a three-storey complex with a rooftop terrace.
'It is a very good location in the sense that it is directly opposite the MRT station, and everyone that comes down from the station will walk past this building,' said Mr Wong.
The property is located next to the future Clementi central hub and Clementi bus interchange.
A SHOPPING mall directly opposite the Clementi MRT Station has been put on the market by property firm Jones Lang LaSalle (JLL).
JLL is inviting expressions of interest for CityVibe, a retail and entertainment building known for a McDonald's fast-food outlet on the first floor and a cinema that used to be upstairs. The cinema has since been replaced by a Party World KTV branch.
The whole building will undergo reconstruction after the Chinese New Year.
But the owner - Mr Victor Boh of Grandview, linked to Wint Thai Trading - is seeking buyers for the three-storey mall, even as it is being upgraded.
The reconstruction was 'planned some time back but approval was granted only last year', explained Mr Derek Wong, the senior manager of investments at JLL.
Mr Boh decided to go ahead with the upgrading, expected to be completed in November, but was 'serious about selling if it can fetch a good price', added Mr Wong.
Although JLL would not disclose an indicative price, experts said the property could fetch more than $130 million, or over $3,000 per sq ft of gross floor area.
This would give a rental yield of at least 5 per cent, based on JLL's projection of $8.4 million in gross annual rental income.
The mall, which has about 70 years left on its lease, has a site area of 15,597 sq ft and a net lettable area of about 26,581 sq ft. It is to be rebuilt into a three-storey complex with a rooftop terrace.
'It is a very good location in the sense that it is directly opposite the MRT station, and everyone that comes down from the station will walk past this building,' said Mr Wong.
The property is located next to the future Clementi central hub and Clementi bus interchange.
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