Sunday, August 14, 2016

Sing Holdings Limited - A Review of Latest Financials

After posting on Sing Holdings Limited recently, the company released its latest quarterly financials on 12 August 2016.

As usual, I did my analysis using the Enhanced Triple S Scorecard and here are the results:

Yes, it is still a Enhanced Triple S Scorecard Stock, but...

After looking at the financials within such a short period, you will notice the differences in the financials. So here are some of the questions and hopefully are the answers I am looking for.

Changes In Classification of Current Assets - My view is I am wondering why was there a change in the companies' classification in the Current Assets between the 2 quarters. "Trading Properties" were removed in the 2nd quarter financial report.
1st Quarter Current Asset Listing
2nd Quarter Current Asset Listing

My guess was that the Trading Properties stated in the 1st quarter financial statement were the strata units in the BizTech Centre and it is combined into "Completed Properties for Sales".

This is further supported by evidence in the commentary.

In 1st Quarter Commentary, it stated "With regard to BizTech Centre, the Group currently owns 48 strata units with a saleable area of 50,227 square feet in the industrial building. Of this, approximately 92% is tenanted."

In the 2nd Quarter Commentary, it stated "With regard to BizTech Centre, the Group currently owns 47 strata units with a saleable area of 48,957 square feet in the industrial building.  Of this, approximately 94% is tenanted."

This meant that firstly, if ever there were good offers for BizTech Centre units, Sing Holdings Limited were ready to sell them. Secondly, Sing Holdings Limited were actually selling the strata units that were untenanted out.

Therefore, I doubt this is a bad thing for Sing Holdings Limited and I will not deem them to be buffering shareholders. In my view, Sing Holdings Limited is just trying to extract as much benefits for the shareholders as possible during this period of that they do not really have much activities.

Lower Equity Stated - Although the company made money during this quarter, why did the equity decrease?
1st Quarter Equity
2nd Quarter Equity
Upon a closer look at the "Changes of Equity" for the 2 quarters, it was due to payment of dividend and a $5 million attributed to "Distribution to non-controlling shareholder of a subsidiary upon winding-up". These were not recorded in the 1st quarter report.

In Short

Even though there were some changes in the numbers and report for the 2nd quarter, but Sing Holdings Limited continues to be an Enhanced Triple S Scorecard Stock. Furthermore, the changes in the report will not make much fundamental changes to my analysis that I written in the 1st post. Thus, I will continue to hold on to this stock and hopefully it will be a multi-bagger (hopefully I am not dreaming).

Current Price: $0.295 as of 12 August 2016.

Please do your own due diligence before you invest in this stock.

Do note the author is vested in this stock/company at $0.300.

For those who are interested to find similar quality under-valued stock, you can come to my 2nd Sharing Session with T.U.B! I will only be sharing my Enhanced Triple S Scorecard with the attendees of the Sharing Session. If you are interested to attend the 2nd Sharing Session with T.U.B., do not hesitate to contact me directly.

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