Alpina Awarded the Sixth Solar Leasing Tender under the SolarNova Programme by HDB
 

 

 

 

 

 

 

 

 

 

EDPR Buys Majority Stake in Sunseap at S$1.1 Billion Valuation

 

https://links.sgx.com/FileOpen/Press%20Release%20-%20Contract%20Award.ashx?App=Announcement& FileID=708024
 

SINGAPORE, 23 March 2022 &ndash Alpina Holdings Limited (高 峰 控 股 有 限 公 司 ) (the &ldquo Company&rdquo , and together with its subsidiaries, the &ldquo Group&rdquo ), an established Singapore-based specialist in providing integrated building services (&ldquo IBS&rdquo ), mechanical and electrical (&ldquo M& E&rdquo ) engineering services, and alteration and addition (&ldquo A& A&rdquo ) works to public and private sector projects, is pleased to announce that its wholly-owned subsidiary, Digo Corporation Pte. Ltd. (&ldquo Digo Corporation&rdquo ), and Terrenus Energy Pte Ltd (&ldquo Terrenus Energy&rdquo ), have been jointly awarded the sixth solar leasing tender under the SolarNova programme (the &ldquo Project&rdquo ) by the Housing & Development Board (&ldquo HDB&rdquo ). Terrenus Energy is a renewable energy systems developer and solutions provider based in Singapore.

 

The Project, with a solar capacity of 70 megawatt-peak (&ldquo MWp&rdquo ), aggregates public sector demand for the installation of solar panels across 1,198 HDB blocks and 57 government sites. The Project also includes the requirement to install smart electrical sub-meters at HDB blocks to monitor and analyse energy consumption patterns and the performance of common services at each HDB block. 

 

Installation of the solar photovoltaic panels is expected to begin in the 3rd quarter of 2022 and complete by the 1st quarter of 2025.

 

Following the award of the Project, Digo Corporation and Terrenus Energy will, inter alia, enter into a joint venture agreement (&ldquo JVA&rdquo ) in relation to be setting up a joint venture company to be incorporated to undertake the Project. As at the date of this press release, the negotiations between Digo Corporation and Terrenus Energy on the JVA are at a preliminary stage.

 

The Group holds 15 Workhead registrations and 2 builder licences with the Building and Construction Authority (&ldquo BCA&rdquo ). Among these, the Group holds a ME03 (Solar PV system integration) Workhead registration, which allows the Group to undertake installation, testing, commissioning, maintenance and repair of ground/ building-mounted grid-connected solar PV systems for electricity generation.

 

 

 

UOB Kay Hian explores Alpina Holdings' potential in unrated report
 

The Singapore research team at UOB Kay Hian is positive on Catalist-listed Alpina Holdings&rsquo prospects.

In an unrated report dated March 16, the team has noted the company&rsquo s strong orderbook of $151 million as at Dec 31, 2021, with the company continuing to proactively tender for new contracts.

 

According to the UOB Kay Hian team, Alpina&rsquo s projects mostly comprise maintenance works in Singapore&rsquo s public sector projects, which are recurring in nature.

 

In addition, the company&rsquo s customers are &ldquo good paymasters&rdquo which include ministries and statutory boards under the Singapore government, notes the team.

 

Furthermore, the company seeks to win more contracts in the space of enhanced facility management solutions. The sector should see heightened demand as more building facilities in Singapore are aging and require better care.

 

There are also rising needs for customised and integrated solutions in redeveloped buildings, adds the team at UOB Kay Hian.

 

&ldquo Alpina has extended its scope of services and obtained registration of the FM01 (Facilities Management) Workhead &ndash Grade M3 in 2020. On the other hand, Alpina is on the lookout for acquisitions (in the areas of cleaning services, landscape services, security services and pest control services, etc) to accelerate the extension of its integrated facilities management (IFM) services to enhance its value propositions to customers and boost its revenue streams,&rdquo it notes.

 

Alpina is an established local-based specialist that provides integrated building services (IBS), mechanical and electrical (M& E) engineering services, as well as alteration and addition (A& A) works.

 

The company launched its initial public offering (IPO) on the Catalist Board of the Singapore Exchange (SGX) in January 2022. Its shares opened on a &ldquo ready&rdquo basis on Jan 28.

 

To the team, Alpina is currently trading at an annualised P/E of 6x for the FY2021, which is deemed attractive.

 

While the company does not have a fixed dividend policy at present, it has indicated in its prospectus, that it intends to distribute dividends of a minimum of 50% of its earnings for FY2022 and FY2023.

 

To this end, near-term key catalysts include Alpina' s stellar performance for the 2HFY2021.

 

&ldquo If Alpina delivers a good set of financial results for 2021, this will reinforce the merits of its business model and build a better track record for the company, which could be a boost in market confidence,&rdquo writes the team.

 

&ldquo Annualising 1HFY2021 earnings of $4.1 million and deducting listing expenses of an estimated $1.2 million will result in 2021 earnings of $7.0 million, representing a 40% y-o-y growth from 2020&rsquo s earnings of $5.0 million,&rdquo it adds.

 

&ldquo To recap, Alpina has delayed the release of its 2021 financial results from February to around May due to a delay in the auditing process, as most of the resources have been directed to the IPO process.&rdquo

 

The winning of more contacts, as well as the successful acquisition of synergistic businesses that are accretive to Alpina&rsquo s earnings, are also key catalysts to the company.

The Singapore research team at UOB Kay Hian is positive on Catalist-listed Alpina Holdings&rsquo prospects.

In an unrated report dated March 16, the team has noted the company&rsquo s strong orderbook of $151 million as at Dec 31, 2021, with the company continuing to proactively tender for new contracts.

 

According to the UOB Kay Hian team, Alpina&rsquo s projects mostly comprise maintenance works in Singapore&rsquo s public sector projects, which are recurring in nature.

 

In addition, the company&rsquo s customers are &ldquo good paymasters&rdquo which include ministries and statutory boards under the Singapore government, notes the team.

 

Furthermore, the company seeks to win more contracts in the space of enhanced facility management solutions. The sector should see heightened demand as more building facilities in Singapore are aging and require better care.

 

There are also rising needs for customised and integrated solutions in redeveloped buildings, adds the team at UOB Kay Hian.

 

&ldquo Alpina has extended its scope of services and obtained registration of the FM01 (Facilities Management) Workhead &ndash Grade M3 in 2020. On the other hand, Alpina is on the lookout for acquisitions (in the areas of cleaning services, landscape services, security services and pest control services, etc) to accelerate the extension of its integrated facilities management (IFM) services to enhance its value propositions to customers and boost its revenue streams,&rdquo it notes.

 

Alpina is an established local-based specialist that provides integrated building services (IBS), mechanical and electrical (M& E) engineering services, as well as alteration and addition (A& A) works.

 

The company launched its initial public offering (IPO) on the Catalist Board of the Singapore Exchange (SGX) in January 2022. Its shares opened on a &ldquo ready&rdquo basis on Jan 28.

 

To the team, Alpina is currently trading at an annualised P/E of 6x for the FY2021, which is deemed attractive.

 

While the company does not have a fixed dividend policy at present, it has indicated in its prospectus, that it intends to distribute dividends of a minimum of 50% of its earnings for FY2022 and FY2023.

 

To this end, near-term key catalysts include Alpina' s stellar performance for the 2HFY2021.

 

&ldquo If Alpina delivers a good set of financial results for 2021, this will reinforce the merits of its business model and build a better track record for the company, which could be a boost in market confidence,&rdquo writes the team.

 

&ldquo Annualising 1HFY2021 earnings of $4.1 million and deducting listing expenses of an estimated $1.2 million will result in 2021 earnings of $7.0 million, representing a 40% y-o-y growth from 2020&rsquo s earnings of $5.0 million,&rdquo it adds.

 

&ldquo To recap, Alpina has delayed the release of its 2021 financial results from February to around May due to a delay in the auditing process, as most of the resources have been directed to the IPO process.&rdquo

 

The winning of more contacts, as well as the successful acquisition of synergistic businesses that are accretive to Alpina&rsquo s earnings, are also key catalysts to the company.

 

Established Integrated Building Services Specialist with Growing Order Book and Strong Presence in Singapore&rsquo s Public Sector Trading at Attractive Valuation with Intention to Distribute Dividends of a Minimum of 50% of its Earnings for 2022 and 2023