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The market clearly does not care about this issue. I suggest the reason is that it is so small relative to the gross asset value - even a total loss of S$100m is less than 3% of gross asset value as at June 2025.
Straits Trading: NAV Overhang &mdash Let the Price Settle First
$Straits Trading (S20.SG)$
We prefer to let the share price moderate first. The ICBC demand notice on the China retail mall JV puts a clear NAV overhang on The Straits Trading Company Limited. Its 37.7% JV stake (carried at ~S$100m, ~6&ndash 7% of equity) is pledged as collateral, and enforcement could trigger a non-cash NAV write-down of ~S$0.18&ndash 0.20 per share.
Not business-breaking, but like a bank reassessing the value of a mortgaged house, price usually adjusts before clarity comes.
Caveat: This is not investment advice. Markets can reprice faster or differently than fundamentals, and outcomes may change if there is restructuring, settlement, or lender forbearance.
demand notice impact on NAV
$Straits Trading (S20.SG)$
Following a demand notice from ICBC on a China retail mall JV loan (US$52.5m immediately due after repayment default), The Straits Trading Company Limited now faces a real NAV risk: its 37.7% JV stake, carried at S$100m (6&ndash 7% of group equity), is pledged as collateral and could be seized if the lender enforces the share mortgage. Any loss of control would likely trigger a material write-down (~S$0.18&ndash 0.20/share)&mdash non-cash, but still NAV-destructive, narrowing valuation upside and reinforcing the structural risk of China property exposure until the situation is resolved.
dydd pls .
$Straits Trading (S20.SG)$
Following a demand notice from ICBC on a China retail mall JV loan (US$52.5m immediately due after repayment default), The Straits Trading Company Limited now faces a real NAV risk: its 37.7% JV stake, carried at S$100m (6&ndash 7% of group equity), is pledged as collateral and could be seized if the lender enforces the share mortgage. Any loss of control would likely trigger a material write-down (~S$0.18&ndash 0.20/share)&mdash non-cash, but still NAV-destructive, narrowing valuation upside and reinforcing the structural risk of China property exposure until the situation is resolved.
dydd pls .
tangsookiam1947 ( Date: 22-Dec-2025 08:20) Posted:
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$100mil net carrying value . Potential impact to NAV is around 25 cents &hellip quite major ?
There was a recent news - CEIPT OF DEMAND NOTICE BY A SUBSIDIARY
The Straits Trading Company Limited (the "Company") refers to the announcement dated
17 December 2019 in relation to its proposed acquisition of a retail mall in Shanghai, China
(the "Property"), through a joint venture entity, Ivory SL Joint Venture Limited (the "JVCo")
formed between its indirect wholly-owned subsidiary, SRE Venture 16 Pte. Ltd. ("SREV16"),
Fine Process Limited ("ICBCI") and an entity owned by a fund managed by a subsidiary of
ESR Asset Management Limited ("ESR"). The Property was acquired via the acquisition of
100% of the shares of the project company that owned the Property through two wholly-owned
subsidiary companies of the JVCo (collectively, the "Intermediate Holdcos").
As at the date of this announcement, SREV16 has a 37.7% stake in the issued share capital
of the JVCo ("SRE JVCo Shares") and the Company?s net carrying value of the investment
in JVCo is approximately S$100.0 million as at 30 June 2025.
On 17 December 2019, the JVCo as the borrower (the "Borrower") entered into a facility
agreement (the "Facility Agreement") with the Intermediate Holdcos as guarantors
(collectively, the "Guarantors") and ICBCI as lender (the "Lender"). Pursuant to the Facility
Agreement, the Lender had granted the Borrower a USD equivalent of CNY 260,000,000
secured term loan facility. As required by the Facility Agreement, each of SREV16 and ESR
had provided to the Lender an equitable mortgage over their shares in the JVCo (respectively,
the "SRE Share Mortgage" and the "ESR Share Mortgage", and collectively, the "Equitable
Share Mortgages").
The Company wishes to announce that the Lender had issued a notice dated 26 November
2025 (the "Notice") to the Borrower, the Guarantors and each of SREV16 and ESR.
In the Notice, the Lender had declared, amongst other things, that the Borrower had failed to
repay the loans and accrued interest under the Facility Agreement when these had fallen due.
On the basis of the Events of Default (as defined in the Facility Agreement) identified in the
Notice (amongst other things), the Lender had given notice to the Borrower that an aggregate
amount of USD 52,521,798.13 (the "Outstanding Sum") was immediately due and payable
as at the date of the Notice. The Lender further stated that if the Outstanding Sum was not
deposited into its designated account by 5:00 pm on 2 December 2025, it will exercise any or
all of its rights, remedies, powers or discretions under the Finance Documents (as defined in
the Facility Agreement, and which includes the Equitable Share Mortgages) without further
reference to the Borrower and the Guarantors.
The Company notes that if the Lender should enforce in full its rights under the Equitable
Share Mortgages, it may (amongst other things) take possession of, assign, exchange, sell,
transfer, grant options over or otherwise dispose of the shares in JVCo belonging to SREV16
and ESR, which are subject to the SRE Share Mortgage and the ESR Share Mortgage,
respectively, and any interests or rights thereunder. In the event that the Company ceases to
have control over the SRE JVCo Shares, the Company will cease to apply the equity method
for its investment in JVCo and will also be required to assess the net carrying value of the
SRE JVCo Shares for impairment. Any resulting impairment loss will be recognised in the
Company?s income statement and may materially affect the Group?s financial performance for
the relevant reporting period. Notwithstanding the above, the aforementioned impairment loss
is non-cash in nature and is not expected to have an impact on the operating cash flow of the
Group. The Company reiterates that the overall business and financial position of the Group
remain healthy, and the Group has sufficient liquidity to meet all its operational and financial
commitments.
The Company will make further announcements on the SGXNET in the event there are any
material developments which warrant disclosure, in compliance with its obligations under the
Listing Manual. In the meantime, shareholders and potential investors are advised to
exercise caution when dealing in the shares of the Company. In the event of any doubt,
they should consult with their stockbrokers, bank managers, solicitors, accountants or
other professional advisers.
The Straits Trading Company Limited (the "Company") refers to the announcement dated
17 December 2019 in relation to its proposed acquisition of a retail mall in Shanghai, China
(the "Property"), through a joint venture entity, Ivory SL Joint Venture Limited (the "JVCo")
formed between its indirect wholly-owned subsidiary, SRE Venture 16 Pte. Ltd. ("SREV16"),
Fine Process Limited ("ICBCI") and an entity owned by a fund managed by a subsidiary of
ESR Asset Management Limited ("ESR"). The Property was acquired via the acquisition of
100% of the shares of the project company that owned the Property through two wholly-owned
subsidiary companies of the JVCo (collectively, the "Intermediate Holdcos").
As at the date of this announcement, SREV16 has a 37.7% stake in the issued share capital
of the JVCo ("SRE JVCo Shares") and the Company?s net carrying value of the investment
in JVCo is approximately S$100.0 million as at 30 June 2025.
On 17 December 2019, the JVCo as the borrower (the "Borrower") entered into a facility
agreement (the "Facility Agreement") with the Intermediate Holdcos as guarantors
(collectively, the "Guarantors") and ICBCI as lender (the "Lender"). Pursuant to the Facility
Agreement, the Lender had granted the Borrower a USD equivalent of CNY 260,000,000
secured term loan facility. As required by the Facility Agreement, each of SREV16 and ESR
had provided to the Lender an equitable mortgage over their shares in the JVCo (respectively,
the "SRE Share Mortgage" and the "ESR Share Mortgage", and collectively, the "Equitable
Share Mortgages").
The Company wishes to announce that the Lender had issued a notice dated 26 November
2025 (the "Notice") to the Borrower, the Guarantors and each of SREV16 and ESR.
In the Notice, the Lender had declared, amongst other things, that the Borrower had failed to
repay the loans and accrued interest under the Facility Agreement when these had fallen due.
On the basis of the Events of Default (as defined in the Facility Agreement) identified in the
Notice (amongst other things), the Lender had given notice to the Borrower that an aggregate
amount of USD 52,521,798.13 (the "Outstanding Sum") was immediately due and payable
as at the date of the Notice. The Lender further stated that if the Outstanding Sum was not
deposited into its designated account by 5:00 pm on 2 December 2025, it will exercise any or
all of its rights, remedies, powers or discretions under the Finance Documents (as defined in
the Facility Agreement, and which includes the Equitable Share Mortgages) without further
reference to the Borrower and the Guarantors.
The Company notes that if the Lender should enforce in full its rights under the Equitable
Share Mortgages, it may (amongst other things) take possession of, assign, exchange, sell,
transfer, grant options over or otherwise dispose of the shares in JVCo belonging to SREV16
and ESR, which are subject to the SRE Share Mortgage and the ESR Share Mortgage,
respectively, and any interests or rights thereunder. In the event that the Company ceases to
have control over the SRE JVCo Shares, the Company will cease to apply the equity method
for its investment in JVCo and will also be required to assess the net carrying value of the
SRE JVCo Shares for impairment. Any resulting impairment loss will be recognised in the
Company?s income statement and may materially affect the Group?s financial performance for
the relevant reporting period. Notwithstanding the above, the aforementioned impairment loss
is non-cash in nature and is not expected to have an impact on the operating cash flow of the
Group. The Company reiterates that the overall business and financial position of the Group
remain healthy, and the Group has sufficient liquidity to meet all its operational and financial
commitments.
The Company will make further announcements on the SGXNET in the event there are any
material developments which warrant disclosure, in compliance with its obligations under the
Listing Manual. In the meantime, shareholders and potential investors are advised to
exercise caution when dealing in the shares of the Company. In the event of any doubt,
they should consult with their stockbrokers, bank managers, solicitors, accountants or
other professional advisers.
going up again to $1.63 - heng nvr sell on H1 news at $1.52-$1.54
Straits Trading reports H1 loss of S$40.8 million
It cites two main factors for the decline, one of which is the remeasurement of exchangeable bonds following ESR&rsquo s delisting from Hong Kong&rsquo s stock exchange
[SINGAPORE] The Straits Trading Company recorded a net loss of S$40.8 million for the first half of 2025, reversing from a net profit of S$5.2 million in the year-ago period.
It attributed the loss to two main factors &ndash an associate company&rsquo s fair value losses and the remeasurement of exchangeable bonds that it had issued, which gave bondholders the option to convert their bonds into shares of ESR, if that company&rsquo s stock price rose.
The Straits Trading Company is a conglomerate-investment company with stakes in ESR Group, Far East Hospitality and other entities.
As ESR delisted from the Stock Exchange of Hong Kong on Jul 3, the bonds&rsquo maturity date was brought forward, with S$284 million redeemed on Aug 8.
&ldquo (These) fair value losses are non-cash in nature and do not impact on the group&rsquo s operating cash flow. The group&rsquo s underlying assets and financial position remain healthy with sufficient liquidity to meet its operational and financial commitments,&rdquo Straits Trading said on Thursday (Aug 14) as it reported its H1 2025 earnings.
Its revenue for the period rose 5.9 per cent to S$267.5 million, from S$252.5 million previously.
The group&rsquo s property segment reported a net loss of S$13.2 million in H1, narrowing from the S$18.1 million net loss recorded in the year-ago period.
In the near term, it expects its property assets to face strong headwinds from a confluence of external factors, including the strength of the Singapore dollar, an uncertain interest-rate trajectory and ongoing geopolitical turmoil, the group said.
It added: &ldquo As Straits Trading navigates this challenging landscape, it will streamline its portfolio and recycle capital in a systematic and prudent approach to pursue new investment opportunities. Backed by resilient capital and a long-term perspective, the group is actively exploring strategic opportunities in the senior living sector.&rdquo
The resources segment posted a net profit of S$8.4 million in H1 2025, down from S$11.3 million in H1 2024.
While Malaysia Smelting Corporation, in which Straits Trading holds a majority stake, benefited from higher average tin prices per tonne in H1 this year, its performance was impacted by a one-off additional tax recognition and lower tin sales quantity, the group said.
It also owns 30 per cent of Far East Hospitality. Straits Trading&rsquo s hospitality segment had a net loss of S$1.7 million in H1, compared with a net profit of S$1.8 million in the year-ago period, due to impacts from ongoing refurbishment works at a hotel in Australia.
For H1 2025, it reported a loss per share of S$0.09, as opposed to earnings per share of S$0.012 in H1 2024.
The group noted that global growth is expected to moderate amid rising trade tensions and persistent policy uncertainties, with inflation remaining elevated in several economies.
Currency markets have shifted as countries diversify away from US assets, contributing to a gradual decline in the US dollar&rsquo s dominance, it added.
Straits Trading expects to swing to net loss for H1
But its overall financial position remains healthy with sufficient liquidity to meet its operational and financial commitments, says the group
[SINGAPORE] The Straits Trading Company : S20 +1.23% is expected to swing to a net loss for the first half of FY2025 ended June, the group with operations and financial interests in resources, property, and hospitality said in a regulatory filing on Wednesday (Aug 6).
It had reported a net profit for the corresponding year-ago period.
The net loss is mainly attributable to loss from the share of results of an associate due to a change in fair value of investment properties in the UK as a result of higher capitalisation rates and weaker market sentiments.
Net loss arising from the remeasurement of exchangeable bonds due to the withdrawal of
real estate management group ESR&rsquo s listing in Hong Kong also contributed to the bottom line.
However, as the fair value losses are non-cash in nature, they are not expected to have an impact on the operating cash flow of the group.
The Straits Trading Company said the group&rsquo s overall business and financial position remain healthy with sufficient liquidity to meet its operational and financial commitments.
Looks like MAS 5 billion fund start enter ...rocket moon shot
Nice .... 😊
Smart move. Now shares worth more .....
investshare ( Date: 27-Jun-2025 13:58) Posted:
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Will accumulate more today
Yes, patience rewards. Waiting for HY results coming up.
finalllyyy...
Can' t be bothered about tariffs! Today, a special situation play in Japan snags me my 22nd win from the islands in the form of medical devices bigwig Omron オ ム ロ ン , the 64th total so far in ' 25 & the 91st in Tokyo since 2017! An added cherry on the icing is that I got OUT ¥ 2,600 dearer than the close, > half of a pricey commission trading manually there...
https://stocklaser.blogspot.com/2025/07/miraculous-record-omron-thrills-with.html
https://stocklaser.blogspot.com/2025/07/miraculous-record-omron-thrills-with.html
US tariff 25% -> investor will pull out -> Malaysia Tak boleh
finjungle ( Date: 07-Jul-2025 18:45) Posted:
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This snail relies mainly on the tin mine operation in Malaysia. If Malaysia BOLEH then it should be OK
domperrier ( Date: 07-Jul-2025 17:05) Posted:
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Lost patience with this snails/molasses co. & SOLD 80% of my position in the $1.50 range soon after collecting my 2nd 8c dividend in a row for a 10.9% net return & a few dollars trading gain after commissions.
domperrier ( Date: 05-Dec-2024 10:22) Posted:
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I take shares
kt3152 ( Date: 27-Jun-2025 10:53) Posted:
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Getting my 8c dividend on 30 jun and now enjoy the ride up....
kt3152 ( Date: 11-Jun-2025 15:57) Posted:
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