Sing Holdings

Sing Holdings: AmFraser initiaites Coverage with Buy Call and $0.56 TP, based on a 40% discount to RNAV estimates of S$0.94. With earnings visibility and huge cash inflows from pre-sold units of The Laurels and two other launches, Sing Holdings will boast of a stronger financial position and a stable dividend over FY13-15. House expect its pipeline of projects to add S$0.33 to its current NAV. Sustainable earnings and strong cash inflows. With another S$204mil worth of pre-sold units of The Laurels to be recognized, along with a staggered launch of Punggol EC and The Robin Site in FY13 and FY14 respectively, Sing Holdings boasts of strong earnings visibility till 2015. Expectnet profit to grow at 9.5% CAGR from 2013-15, and a sustainable DPS of 1.6c in 2013-15. This translates into a forward yield of 3.9%. Also expect massive cash inflows from progress payments to strengthen Sing Holdings’ financial position and pave way for more landbank acquisitions ahead. House favour Sing Holdings for its selective focus on EC projects going forward, as believe the EC segment enjoys favourable supply-demand dynamics. Demand in this segment will remain robust, driven by affordability, a huge middle income class and lifestyle desire. Sing Holdings currently trades at a massive 56% discount to RNAV. At current price levels, Sing Holdings offers a strong value proposition, on top of rewarding shareholders with a decent and sustainable yield of 3.9%.