The group&rsquo s undervalued share price is unwarranted, given its rare landed housing land bank

 

[SINGAPORE] Many affluent Singaporeans aspire to live in private landed homes, the purchase of which is generally restricted to Singapore citizens.

 

Between the fourth quarter of 2019 and Q4 2025, partly driven by the need for more space in the wake of the Covid pandemic, private landed home prices grew by more than 47 per cent, outpacing the 39 per cent rise in non-landed home prices, going by data from the Urban Redevelopment Authority (URA). The data for Q4 2025 is a flash estimate.

 

However, despite its substantial exposure to landed homes here, the share price of   Bukit Sembawang Estates   : B61 +0.41%, which was incorporated in 1967 and is among Singapore&rsquo s pioneer property developers, is undervalued. 

 

For the financial year ended Mar 31, 2025, the group&rsquo s net profit grew 61 per cent to S$114 million. Shareholders received a total dividend of S$0.20 a share for the last financial year, up from S$0.16 a share in the financial year before.

 

For the six months ended Sep 30, 2025, net profit fell 25 per cent year on year to S$47.2 million. Revenue from property development declined after completion of two condo developments. 

 

With its Singapore focus, the group has avoided the fair-value and currency losses of peers that ventured overseas to markets such as the UK and Australia, or problems associated with China&rsquo s troubled housing market.

 

Bukit Sembawang&rsquo s share price has rallied over the past nine months. Still, the group&rsquo s share price of S$4.87 as at Jan 14 was at a discount of 21 per cent to its end-September 2025 net asset value (NAV) per share of S$6.13. 

 

In short, while one pays market value to buy a new-built terrace house from the developer, one can buy the developer&rsquo s shares at a deep discount to what is likely a highly conservative book value. DBS Group Research estimated Bukit Sembawang&rsquo s revalued NAV per share to be S$10.68 based on a report dated Nov 28, 2025.

 

Prized landed housing land bank

Sure, many locally listed property groups trade below book value. 

 

However, Bukit Sembawang had a net cash position as at end-September 2025 &ndash unlike numerous property developers, which have significant net debt positions.

 

Crucially, the group owns large land tracts that can be developed as landed housing.

 

Owning a large landed housing land bank in Singapore is rare, as state land sales of private housing sites are predominantly for non-landed homes.  

 

DBS Group Research&rsquo s report indicated that Bukit Sembawang owns more than 1.5 million square feet (sq ft) of land &ndash largely located in the Ang Mo Kio, Seletar and Sembawang areas &ndash that can be developed into landed homes with a total gross development value of around S$2.5 billion.

 

The group has made good progress with the sales of the landed houses at the 132-unit 99-year leasehold Pollen Collection in the Seletar Hills area, which is expected to receive its temporary occupation permit in 2026. 

 

Shareholders can also look forward to contributions from sales at the newly launched 186-unit 99-year leasehold Pollen Collection II, among others.   A search on URA Realis on Jan 14 showed caveats were lodged for 18 transactions of terrace houses with land plots of 1,615 sq ft to 2,669 sq ft at Pollen Collection II. Prices ranged from S$4.16 million to S$5.13 million.

 

However, shareholders may like the developer&rsquo s board of directors to work harder at unlocking shareholder value.

 

Maybe Bukit Sembawang can do an off-market purchase of its shares or actively repurchase shares which are then cancelled &ndash like what   Hongkong Land   : H78 +3.28% did.

 

Also, DBS Group Research suggested that Bukit Sembawang could pay a special dividend of up to S$1 per share.

 

Put control up for grabs

Nonetheless, what Bukit Sembawang&rsquo s board of directors should do to truly unlock value for shareholders is to ask its major shareholders to put their stakes up for sale, or, alternatively, offer to buy all the shares of the group at a fair price.  

 

The group&rsquo s latest annual report indicated that Selat has a deemed interest of 29.1 per cent in Bukit Sembawang, and Lee Rubber&rsquo s combined direct and deemed interest in the group totals around 13.1 per cent. Selat and Lee Rubber are entities linked to members of the Lee family who are associated with OCBC. 

 

Should a buyer acquire the interests of Selat and Lee Rubber, the said party can then offer to buy Bukit Sembawang&rsquo s remaining shares, with an eye to privatising it.

 

If control of Bukit Sembawang is up for grabs, expect parties who are drawn to the group&rsquo s attractive landed housing land bank to show keen interest. 

 

Generally, buyers of suburban landed homes are local first-time buyers who do not incur additional buyer&rsquo s stamp duty. As supply of new landed homes is scarce, suburban landed housing demand is seen as resilient.

 

While listed property groups typically trade at depressed share prices, parties will pay up when control of a property-related group is available. For example, Cuscaden Peak trumped Keppel in the tussle for Singapore Press Holdings, excluding its media business, with shareholders exiting at above book value.

 

Perhaps, with the right competitive tension, a buyer may be found who would pay a premium to NAV to control Bukit Sembawang. This can be easily justified, given the group&rsquo s NAV excludes potential development profit and its strong financial position. 

 

Should a buyer pay at least 1.1 times book value for Bukit Sembawang, the upside to shareholders is over S$1.87 a share, versus the share price as at Jan 14.  

 

Bukit Sembawang&rsquo s deep value should be unlocked to benefit all shareholders.

 

Critically, active value unlocking by undervalued groups such as Bukit Sembawang will help drive investor interest in local stocks and give added momentum to the revival of Singapore-listed equities.

DBS Group Research (DBS) analysts Tabitha Foo and Derek Tan see one of Singapore&rsquo s longest-standing residential developers, Bukit Sembawang Estates, as a &ldquo potential dividend powerhouse&rdquo .

In their Nov 28 un-rated report, the DBS analysts see the company&rsquo s core engine lies with the property development segment, underpinned by a substantial landbank of more than 1.5 million sq ft, which could be progressively redeveloped into landed homes.

This equates to an estimated gross development value (GDV) of $2.5 billion ($9.54 per share), providing multi-year income visibility.

&ldquo Given Singapore&rsquo s acute land scarcity and tightly regulated supply, the structurally tight supply-demand backdrop continues to underpin price resilience of landed properties across cycles &ndash making Bukit Sembawang&rsquo s landbank all the more valuable,&rdquo they state.

In both Foo and Tan&rsquo s view, Bukit Sembawang as a good potential candidate for outsized capital return and anchored by a &ldquo best-in-class&rdquo balance sheet.

&ldquo The company stands out among Singapore developers with its fortress balance sheet and its high-quality landbank. The group holds record cash of $2.25 per share and carries zero debt, affording it exceptional financial flexibility and scope to deliver materially higher payouts.

With this, the DBS analysts have indicated a fair value of $5.88 a share for Bukit Sembawang&rsquo s stock. Their fair value is pegged to a 45% discount of their revalued net asset value (RNAV), in line with the rest of the developer peers.

Revenue from the company&rsquo s property development segment slid 61%

 

[SINGAPORE]   Bukit Sembawang Estates&rsquo   : B61 -0.95% net profit for the half-year ended September fell 25 per cent year on year to S$47.2 million, primarily due to a plunge of 61 per cent in revenue from its property development segment.

 

The property group has business segments including development, investment holding and operating of serviced apartments. Its revenue plunged 60 per cent to S$130.2 million as a result of lower revenue in the development segment, based on its H1 FY2025/26 financial results published on Wednesday (Nov 5).

 

The decline of the segment&rsquo s revenue was primarily due to the absence of revenue from two condominium projects, The Atelier and LIV@MB, as they were completed, said Bukit Sembawang.

 

Meanwhile, the hospitality segment&rsquo s revenue fell 12 per cent to S$6.6 million, mainly due to lower average room rates and occupancy rates at the serviced apartments, Fraser Residence Orchard, Singapore.

 

Earnings per share for the period stood at S$0.1821, lower than S$0.243 in the corresponding period last year.

 

Net asset value per share was S$6.13 as at end-September, compared with S$6.15 as at end-March.

No dividend was declared for the period.

 

The property group said that it is preparing to launch a new residential landed development, Pollen Collection II, and will continue to focus on the sales of condominium project 8@BT and the balance units at Pollen Collection, while progressing with planning for residential landed development Luxus Hills Phase 10.

Revenue falls 24% to S$225.9 million

 

[SINGAPORE] Property developer Bukit Sembawang Estates : B61 -0.25% reported a net profit after tax of S$51.4 million for the second half of its financial year ending Mar 31, a 13 per cent increase from S$45.6 million over the same period last year.

 

The increase was mainly due to higher profits being recognised for residential development projects Pollen Collection, Liv@MB and Fraser Residence Orchard, said the property developer via a bourse filing on Monday (May 26).

 

However, revenue fell 24 per cent to S$225.9 million from S$297.7 million over the same period mainly due to the absence of revenue contribution from a completed project call The Atelier, which had its revenue fully recognised in the previous half-year reporting period.

 

Cost of sales was down 34 per cent at S$166.5 million. However, gross profit rose 32 per cent to S$59.4 million in H2 FY2025.

 

As a result, earnings per share increased to S$0.1984 from S$0.1762 over the same period.

 

While higher profits were recognised from the property development segments, there were lower profits from the hospitality segment.

 

This was due to lower impairment loss on property, plant and equipment at Fraser Residence Orchard.

 

The company said that the cooling measures implemented in April 2023 &ndash when the government hiked Additional Buyer&rsquo s Stamp Duty rates to 60 per cent for foreigners &ndash continue to dampen property demand, particularly from foreign buyers as well as investment-driven purchases by Singaporeans and permanent residents.

 

&ldquo At the same time, a cautious economic outlook, both globally and locally, is weighing on investor sentiment. Within this context, the residential property market remains challenging, with elevated construction and development costs continuing to put pressure on margins,&rdquo the group said.

 

&ldquo The group will continue to monitor the progress of construction of our ongoing projects to ensure timely completion. It will also adopt a prudent and measured approach in calibrating the timing of upcoming launches of residential projects, in alignment with prevailing market conditions and buyer sentiment,&rdquo it added.

 

Bukit Sembawang Estates B61 0.56% has posted earnings of $25.2 million for its 1HFY2024 ended September, doubling its earnings of $12.6 million recorded in the previous corresponding period.

 

Revenue for the first half of FY2024 similarly increased by 119% y-o-y to to $264.3 million, while cost of sales increased by 132% to $232.5 million.

 

Gross profit for the period increased by 57% y-o-y to $31.8 million mainly due to higher profit recognised on development projects. In 1HFY2024, profits were recognised for The Atelier, LIV@MB and Fraser Residence Orchard, Singapore.

 

Bukit Sembawang&rsquo s earnings per share for 1HFY2024 came in at 9.74 cents, compared to 4.86 cents in 1HFY2023.

 

As at Sept 30, Bukit Sembawang B61 0.56% &rsquo s total assets decreased by 2.2% y-o-y to $1.54 billion mainly   due to a decrease in deferred tax assets and development properties offset against the increase in contract costs, contract assets, trade and other receivables, and cash and cash equivalents

 

Meanwhile, the company&rsquo s liabilities decreased by 32.8% y-o-y to $69.6 million as at end-September.

 

Bukit Sembawang&rsquo s cash and cash equivalents stood at $356.6 million as at Sept 30.

 

THE Urban Redevelopment Authority (URA) on Tuesday (Nov 15) awarded the tender for a 99-year leasehold site in Bukit Timah Link to Bukit One, a wholly-owned subsidiary of Bukit Sembawang Estates.

 

Of the five bids, Bukit One&rsquo s was the highest &ndash S$200 million or S$14,457 per square metre (sq m) of gross floor area (GFA), said a URA document. The site was launched for tender on Aug 31 and closed on Nov 3.

 

The Bukit Timah Link land parcel is 4,611.1 sq m in size and can have a maximum GFA of 13,834 sq m. The building is to have a maximum of 20 storeys.

 

In a bourse filing on Tuesday, Bukit Sembawang Estate said it intends to develop the land parcel into a 20-storey development comprising 160 residential apartments with communal facilities, and to &ldquo curate a cosmopolitan village lifestyle&rdquo which it believes will appeal to young families and investors.

 

&ldquo This lifestyle concept would fit well into this location with its village vibe, and would provide an attractive option for buyers looking for a unique lifestyle, as they enjoy the gentrification and transformation of the Beauty World precinct,&rdquo the group added.

 

The transaction will be funded by the group&rsquo s internal resources and bank borrowings. It is not expected to have a material impact on the net tangible assets or earnings per share of the group for the financial year ending Mar 31, 2023.

PROPERTY development and investment group Bukit Sembawang Estates on Friday (May 27) posted a 75 per cent fall in net profit to S$29.6 million for the second half ended March 31, 2022.

 

Revenue decreased 75 per cent to S$89.4 million.

 

Gross profit was lower by 79 per cent to S$30 million mainly due to lower profit recognised on development projects. In H2, profits were recognised for 8 St Thomas, Luxus Hills (Signature Collection), The Atelier and Fraser Residence Orchard, Singapore.

 

The group&rsquo s results translated to earnings per share of 11.42 cents, compared with 44.72 cents a year ago.

 

For the full year, net profit fell 56 per cent to S$82.9 million while revenue was down 50 per cent to S$288.2 million.

 

Bukit Sembawang is proposing a final dividend of 4 cents per share and a special dividend of 12 cents per share, compared with a final dividend of 4 cents per share and a special dividend of 29 cents per share a year ago.

 

The group has fully sold Luxus Hills Contemporary Collection (Phase 16) and Nim Collection (Phase 1) as of Q1 2022.

 

It relaunched The Atelier for sale about six months ago and conducted the preview of LIV @ MB on May 6, with sales beginning May 21. Bukit Sembawang said Liv @ MB sold over 75 per cent of units on its launch weekend at an average selling price of S$2,387 per square foot.

BUKIT Sembawang Estates' s Bukit Sembawang: B61 -0.77% net profit for the first half ending Sep 30 fell 28 per cent to S$53.4 million, from S$73.7 million the year before.

 

The group' s earnings per share dropped to 20.61 Singapore cents from 28.45 cents last year. Revenue also fell 11 per cent to S$198.8 million, while cost of sales inched upwards by 3 per cent to S$128.5 million. This, along with lower profit recognised on development projects, led gross profit to fall 29 per cent to S$70.3 million from the previous year' s S$98.4 million.

 

Bukit Sembawang' s other income decreased by 18 per cent to S$722,000, mainly due to less government grant income which came as relief measures during the pandemic.

 

Other operating expenses decreased by 44 per cent to S$2.8 million for the period, due to lower maintenance charges and property tax arising from there having been fewer unsold units of completed development properties.

 

For the period under review, Bukit Sembawang said profits were recognised for 8 St Thomas, Luxus Hills (Signature Collection) and Luxus Hills (Contemporary Collection), Nim Collection Phases 1 and 2, The Atelier as well as Fraser Residence Orchard, Singapore. In the same period last year, profits were recognised for all of the above except The Atellier, which was only launched this year.

 

Bukit Sembawang recorded a net cash outflow of S$26.4 million for the half year, after last year' s net inflow of S$174.7 million. Net cash used in financing activities amounted to S$175.8 million, mainly for dividend payments and full repayment of borrowings relating to The Atelier.

Net cash generated from operating activities also came in lower at S$149.5 million, due to working capital movements.

 

The group added that it will continue to monitor the health of the overall economy and residential property market, and calibrate its approach and timing of the launches of new residential projects.