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should test the previous high again 0.36...
SmallSmall ( Date: 23-Oct-2024 10:09) Posted:
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For those interested to read the article which was posted in August 2024
DYODD
SINGAPORE - Looking through the list of 631 companies on the Singapore Exchange (SGX) stock screeners as at Aug 15, one can see that only 343 companies are profitable or have any price-earnings (PE) multiples. This means 288, or 45.6 per cent, of listed companies are loss-making.
Of the 343 profitable companies, 67 are trading above 25 times PE 88 companies are trading at 15 to 25 times PE. So that is 45 per cent of companies that are profitable, but trading above the Singapore market average PE of 12.3 times.
But buried under this rubble are a tiny number of rough diamonds.
Indonesian property group Sinarmas Land (SML) is one of them.
According to SGX data, SML trades at a PE of 2.8 times versus a market PE of 12.3 times.
Recently, it unveiled half-year 2024 net profit of $199 million. But profit attributable to shareholders was at $89 million.
Revenue for end-June was up 28 per cent to $766 million.
Earnings before interest, taxes, depreciation and amortisation (or Ebitda) &ndash a gauge of the company&rsquo s earnings power &ndash rose to $395.8 million for the half year, from $304.8 million during the first half of 2023. The Ebitda margin widened to 51.7 per cent.
To get a broader picture of SML&rsquo s earnings track record, for the last 2½ years up to June, the company made a total of $705 million in attributable net profit. That is 16.6 cents in earnings per share (EPS) over the period. EPS in 2023 alone was 6.4 cents.
With its half-year results, the company reported that the profit margin rose to 65.5 per cent. Net interest expenses dropped to $37.5 million from $57.4 million.
The company has also transitioned from a net debt-to-equity ratio of 0.4 per cent in 2023 to a net cash position after the first half of 2024. It had cash and cash equivalents of $1.5 billion.
The group ended the current period with a net cash position, with cash per share at 35.5 cents.
Net asset value (NAV) per share stands at $1.19 currently.
As I have mentioned in my previous columns, billionaire investor Warren Buffett&rsquo s concept of margin of safety involves buying a stock at a price significantly lower than its estimated fair value. This built-in cushion allows for potential mistakes and market volatility.
The size of the margin of safety depends on one&rsquo s understanding of the business. The less one understands the business, the larger the margin of safety required.
Buying a stock at 18 cents, but backed by $1.19 in assets per share, would surely fit the bill.
According to the company&rsquo s presentation slides and annual report, this Widjaja family-owned, Singapore-headquartered company has a diverse property business, including township development, residential, commercial, industrial and hospitality assets in Indonesia, Malaysia, Singapore, China, Australia and Britain.
SML&rsquo s portfolio includes five city and township projects, 16 hotels, resorts and golf courses, 25 residential properties, a convention centre, 25 retail and trade centres, 18 commercial properties and three industrial properties. They are located across 25 cities and cover over 45 million sq m of prime land.
In Indonesia, SML is one of the largest property development companies by land bank, and operates mainly through three listed Indonesian subsidiaries, namely BSDE, DUTI and DMAS, which have a combined market capitalisation of $4.1 billion.
Whichever way one slices or dices it, these are stunning numbers for a Singapore-listed company.
If one were to filter down to a $500 million market cap minimum, and $500 million revenue minimum on the SGX stock screener, this looks like a company that could draw the interest of funds.
Though of Indonesian origin, SML&rsquo s independent directors are all reputable Singaporeans. Its auditor is Moore Stephens, the 10th-largest accounting firm in the world with 620 offices in 100 countries.
The Widjajas own 70.3 per cent of the company. The second-biggest shareholder is UOB Kay Hian with 13.65 per cent. The third-largest shareholder is Citibank Nominees Singapore, with 5.57 per cent &ndash banks usually limit their exposure to below 5 per cent, but make exceptions for big clients. CGS owns another 3.82 per cent.
These four largest shareholders together control 93.34 per cent of the company. Just 90 per cent is needed to make a compulsory acquisition. If they are friendly parties, privatisation cannot be entirely ruled out.
Looking at other property companies which are trading at huge discounts to NAV, Hong Fok made just $2 million in net profit this first half, whereas Wing Tai will post a first-half loss. Hong Fok is trading at a discount of 78.5 per cent to NAV, with profit mainly from revaluation gain or losses. Wing Tai is at a 69.4 per cent discount to NAV.
Most property companies that are trading at huge discounts to NAV have stopped adding to their land bank or taking on new projects.
In contrast, SML, which at 18 cents trades at a discount of almost 85 per cent to NAV, is still firing on all cylinders. It is adding to its land bank, buying more shares in listed subsidiaries and taking on joint ventures.
The company posted revenue of $1.34 billion in 2023 and is looking to improve on that in 2024. What would its numbers be if it continues to grow at its current rate for the next five years? What about in 10 years?
Meanwhile, Indonesia&rsquo s not-so-secret ambition to bid for the 2036 Olympics holds promise for the revaluation of SML&rsquo s vast Indonesian land bank. Indonesia already has stated ambitions to become the world&rsquo s fourth-largest economy within a decade.
Even if its share price doubles, SML&rsquo s stock would still be at a 70 per cent discount to assets. At triple the share price today, the margin of safety would still be about 50 per cent.
Looking at its balance sheet, price, resources and growth trajectory, surely this is the largest margin of safety one can hope to get on the local bourse.
Mr Buffett buys big when the margin of safety is outsized. People who complain about this market should perhaps run through SML&rsquo s numbers, which are easily available on the company&rsquo s website, presentation slides and SGX&rsquo s Company Announcement section.
This is a stock which traded well above 75 cents a decade ago, and as high as $1.10 in 2006.
In my 32 years of reporting on companies, I have rarely come across one with a risk-reward ratio looking this attractive. A land of opportunity awaits the discerning investor.
DYODD
SINGAPORE - Looking through the list of 631 companies on the Singapore Exchange (SGX) stock screeners as at Aug 15, one can see that only 343 companies are profitable or have any price-earnings (PE) multiples. This means 288, or 45.6 per cent, of listed companies are loss-making.
Of the 343 profitable companies, 67 are trading above 25 times PE 88 companies are trading at 15 to 25 times PE. So that is 45 per cent of companies that are profitable, but trading above the Singapore market average PE of 12.3 times.
But buried under this rubble are a tiny number of rough diamonds.
Indonesian property group Sinarmas Land (SML) is one of them.
According to SGX data, SML trades at a PE of 2.8 times versus a market PE of 12.3 times.
Recently, it unveiled half-year 2024 net profit of $199 million. But profit attributable to shareholders was at $89 million.
Revenue for end-June was up 28 per cent to $766 million.
Earnings before interest, taxes, depreciation and amortisation (or Ebitda) &ndash a gauge of the company&rsquo s earnings power &ndash rose to $395.8 million for the half year, from $304.8 million during the first half of 2023. The Ebitda margin widened to 51.7 per cent.
To get a broader picture of SML&rsquo s earnings track record, for the last 2½ years up to June, the company made a total of $705 million in attributable net profit. That is 16.6 cents in earnings per share (EPS) over the period. EPS in 2023 alone was 6.4 cents.
With its half-year results, the company reported that the profit margin rose to 65.5 per cent. Net interest expenses dropped to $37.5 million from $57.4 million.
The company has also transitioned from a net debt-to-equity ratio of 0.4 per cent in 2023 to a net cash position after the first half of 2024. It had cash and cash equivalents of $1.5 billion.
The group ended the current period with a net cash position, with cash per share at 35.5 cents.
Net asset value (NAV) per share stands at $1.19 currently.
As I have mentioned in my previous columns, billionaire investor Warren Buffett&rsquo s concept of margin of safety involves buying a stock at a price significantly lower than its estimated fair value. This built-in cushion allows for potential mistakes and market volatility.
The size of the margin of safety depends on one&rsquo s understanding of the business. The less one understands the business, the larger the margin of safety required.
Buying a stock at 18 cents, but backed by $1.19 in assets per share, would surely fit the bill.
According to the company&rsquo s presentation slides and annual report, this Widjaja family-owned, Singapore-headquartered company has a diverse property business, including township development, residential, commercial, industrial and hospitality assets in Indonesia, Malaysia, Singapore, China, Australia and Britain.
SML&rsquo s portfolio includes five city and township projects, 16 hotels, resorts and golf courses, 25 residential properties, a convention centre, 25 retail and trade centres, 18 commercial properties and three industrial properties. They are located across 25 cities and cover over 45 million sq m of prime land.
In Indonesia, SML is one of the largest property development companies by land bank, and operates mainly through three listed Indonesian subsidiaries, namely BSDE, DUTI and DMAS, which have a combined market capitalisation of $4.1 billion.
Whichever way one slices or dices it, these are stunning numbers for a Singapore-listed company.
If one were to filter down to a $500 million market cap minimum, and $500 million revenue minimum on the SGX stock screener, this looks like a company that could draw the interest of funds.
Though of Indonesian origin, SML&rsquo s independent directors are all reputable Singaporeans. Its auditor is Moore Stephens, the 10th-largest accounting firm in the world with 620 offices in 100 countries.
The Widjajas own 70.3 per cent of the company. The second-biggest shareholder is UOB Kay Hian with 13.65 per cent. The third-largest shareholder is Citibank Nominees Singapore, with 5.57 per cent &ndash banks usually limit their exposure to below 5 per cent, but make exceptions for big clients. CGS owns another 3.82 per cent.
These four largest shareholders together control 93.34 per cent of the company. Just 90 per cent is needed to make a compulsory acquisition. If they are friendly parties, privatisation cannot be entirely ruled out.
Looking at other property companies which are trading at huge discounts to NAV, Hong Fok made just $2 million in net profit this first half, whereas Wing Tai will post a first-half loss. Hong Fok is trading at a discount of 78.5 per cent to NAV, with profit mainly from revaluation gain or losses. Wing Tai is at a 69.4 per cent discount to NAV.
Most property companies that are trading at huge discounts to NAV have stopped adding to their land bank or taking on new projects.
In contrast, SML, which at 18 cents trades at a discount of almost 85 per cent to NAV, is still firing on all cylinders. It is adding to its land bank, buying more shares in listed subsidiaries and taking on joint ventures.
The company posted revenue of $1.34 billion in 2023 and is looking to improve on that in 2024. What would its numbers be if it continues to grow at its current rate for the next five years? What about in 10 years?
Meanwhile, Indonesia&rsquo s not-so-secret ambition to bid for the 2036 Olympics holds promise for the revaluation of SML&rsquo s vast Indonesian land bank. Indonesia already has stated ambitions to become the world&rsquo s fourth-largest economy within a decade.
Even if its share price doubles, SML&rsquo s stock would still be at a 70 per cent discount to assets. At triple the share price today, the margin of safety would still be about 50 per cent.
Looking at its balance sheet, price, resources and growth trajectory, surely this is the largest margin of safety one can hope to get on the local bourse.
Mr Buffett buys big when the margin of safety is outsized. People who complain about this market should perhaps run through SML&rsquo s numbers, which are easily available on the company&rsquo s website, presentation slides and SGX&rsquo s Company Announcement section.
This is a stock which traded well above 75 cents a decade ago, and as high as $1.10 in 2006.
In my 32 years of reporting on companies, I have rarely come across one with a risk-reward ratio looking this attractive. A land of opportunity awaits the discerning investor.
Wee Hur ady go up, so when is Sinarmas Land fly?
Can it today push through 0.36?
Can it today push through 0.36?
Remember these counters cannot do contra
Buy when low and hold
Hopefully my other counter Tuan Sing will also start to move too from current low base
NAV also like $1
Good luck to all
As usual, please perform your own DD
Buy when low and hold
Hopefully my other counter Tuan Sing will also start to move too from current low base
NAV also like $1
Good luck to all
As usual, please perform your own DD
QueenMaya ( Date: 23-Oct-2024 09:40) Posted:
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In the making.
The next Wee Hur.
superstartup ( Date: 18-Oct-2024 14:33) Posted:
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Will our good friend also post another followup article just as he has done so for Wee Hur?
Jarkarta Composite Index has hit through the roof with the Inauguration of Prabowo Subianto.
Time to move further? Grossly undervalue
Jarkarta Composite Index has hit through the roof with the Inauguration of Prabowo Subianto.
Time to move further? Grossly undervalue
Last few days got trading volume
Together with Wee Hur
This Sinarmas has an even much higher NAV of over SGD 1.00
If I remember correctly, that ST Editor reported both Wee Hur and Sinarmas
Together with Wee Hur
This Sinarmas has an even much higher NAV of over SGD 1.00
If I remember correctly, that ST Editor reported both Wee Hur and Sinarmas
Trading near cash. China development projects.
Potential delisting. Either way this stock is undervalued and
you will never see it at this price again.
SmallSmall ( Date: 03-Oct-2024 11:03) Posted:
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Last:0.32 
+0.02
Finally surpassed cash value of 31c
next target to meet is NAV
+0.02Finally surpassed cash value of 31c
next target to meet is NAV
ozone2002 ( Date: 20-Aug-2024 16:16) Posted:
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Like wingtai, the stock is back to normal again.
game over..?
The authorites shouldlaunch an investigation into the writing of such articles in a national newsapaper and knowing that the crowd would follow
SmallSmall ( Date: 21-Aug-2024 09:22) Posted:
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Then again one can always borrow shares under the SGX lending pool ( 5 mil +) to short if one believes it is a one day play. Either way at least he create the volatility for an otherwise dead but undervalued stock.
We are only dead if the stock is dead with no movement.
We are only dead if the stock is dead with no movement.
Sgvale ( Date: 20-Aug-2024 17:57) Posted:
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He bought everytime before his article published. I think he's already a millionaires.
TraderBen ( Date: 20-Aug-2024 12:54) Posted:
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The pull back will be painful. Can pull back to 250?
Last:0.275 +0.095
finally moving up
getting noticed by the market
buy early and wait for buyers to recognize the value
+0.095finally moving up
getting noticed by the market
buy early and wait for buyers to recognize the value
ozone2002 ( Date: 20-Apr-2024 10:30) Posted:
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Yes he did mention, and it is true all the counters he mentioned are candidates for privatisation.
But he does not call the shots. It is the Company' s major shareholders that decide if and when they want to do it.
Same for GE. You can hold for years but nothing happen. But the value is there.
I believe too Sinarmas Land will drift down because the SS have their own plans.
And because of the lack of liquidity, there are zero analysts coverage.
But that does not change the fact that it is a safe and undervalued company.
No right no wrong. To each his own whether you long or short or do nothing :)
But he does not call the shots. It is the Company' s major shareholders that decide if and when they want to do it.
Same for GE. You can hold for years but nothing happen. But the value is there.
I believe too Sinarmas Land will drift down because the SS have their own plans.
And because of the lack of liquidity, there are zero analysts coverage.
But that does not change the fact that it is a safe and undervalued company.
No right no wrong. To each his own whether you long or short or do nothing :)
ongkk96 ( Date: 20-Aug-2024 15:41) Posted:
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40 cts smelling soon?
SmallSmall ( Date: 20-Aug-2024 15:24) Posted:
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He mentioned about WingTai privatisation? price up and now at 1.25