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Seeing as I'm a small vested holder, I scratch my head and wonder why this counter is falling... Many sites and analysis has positive rating...
The gearing is 30%, P/B is 0.53
http://foreverfinancialfreedom.blogspot.sg/2015/06/recent-action-fraser-commercial-trust.html
Ho Bee recently announced the sale of an industrial property in Singapore, expected to bring about $7 mil in profits for the company. Development property sales should continue to be challenging in the current year but strong rental revenue from its offices and residential properties should help the company to weather the storm until better economic conditions appear.
http://www.investark.com/Analysis56hobee1q15.html
Market has" ' overdiscounted" challenges facing developers: UOB Kay Hian
March 30, 2015 : 4:26 PM
SINGAPORE (March 30): Investors have " overdiscounted" headwinds facing Singapore-listed property developers such as Wing Tai Holdings and CapitaLand , whose current share prices offer deep value, according to UOB Kay Hian.
One such headwind is rising mortgage rates.
Housing loans are becoming more expensive following the sharp rise lately in the Singapore interbank offered rate (Sibor) and the Swap Offer Rate. Sibor has gone up to more than 1% from 0.4% in the past four months.
Still, affordability remains manageable, according to UOB Kay Hian analysts Vikrant Pandey and Derek Chang, who estimate that every one percentage point rise in interest rates will lead to a $500 increase in monthly mortgage payments for a $1 million, 25-year housing loan.
" Those who are able to rent out their units will continue seeing positive carry as rental yields of 2.5% to 3.5% exceed mortgage rates of 1.5%-2%," they wrote in a note.
The total debt servicing ratio used by banks offers another safeguard, they said, as it factors in a much higher mortgage rate of 3.5% in assessing loan eligibility while actual loans charge lower rates of 1.5% to 2%.
" This leaves room for another 100- to 150-basis-point rise in mortgage rates before the borrower' s ability to repay is impacted," they noted.
That said, property investors are finding it harder to rent out units as more completed homes are released into the market and the number of foreigners in Singapore decreases, pushing up vacancy rates, they said.
" Another 100-basis-point rise in Sibor, or alternatively a 30% drop in rents from here on, would result in the positive carry situation turning into a negative carry situation."
UOB Kay Hian has " buy" calls on Wing Tai, CapitaLand, GuocoLand , Ho Bee Land and OUE and respective price targets of $2.50, $4.08, $2.48, $2.68 and $2.80.
http://www.sharejunction.com/sharej...e=Ho Bee Land&topicTitle=Why Ho Bee UP and UP.
RHB Research 2015-07-06: Ho Bee Land - Strong Balance Sheet, Substantial Exposure in Sentosa. Maintain BUY.
Prices of residential units in Sentosa Cove had plunged sharply in the last few years but transactions are now picking up as buyers stepped up their buying amid a sense that prices have bottomed out.
At The Oceanfront, two condominium units were sold in the $2000 psf range in April, a price not seen since October 2012 where a unit was sold at $2,190 psf. One of the two units was a 2,788 sq ft four-bedder which sold for $5.73m ($2,055 psf) while the other unit was a $1,765 sq ft three-bedder which sold at $3.45m ($1,954 psf).
Other projects in the enclave, from Seascape to The Coast and Turquoise, had also seen a pickup in transactions with done deals ranging from $1400-1600 psf.
We think the play on Sentosa properties is still ultimately about the scarcity story, with a limited stock of some 2000 plus units. The biggest player there is Ho Bee Land (HOBEE SP), which clinched eight sites on the island since 2003 and have since sold most of the projects there, raking in $800m of profits which were recycled to acquire investment properties in Singapore and London.
Its remaining exposure in Sentosa is still substantial: we estimate its portfolio of completed units in Turquoise, Seascape and Cape Royale to be worth some $700-800m.
Most of these units are currently rented out as management awaits a turn in the residential cycle.
Meanwhile, the group has a strong balance sheet with net gearing at a modest 0.3x, and enjoys a stream of recurring income from its investment properties that puts the company in good stead even as the residential market remains uncertain in the near term.
We maintain our BUY rating on the stock and $2.60 TP, which is premised on a 35% discount to our RNAV of $4.01.
http://sgshareinvestor.blogspot.sg/2015/07/rhb-research-2015-07-06-ho-bee-land.html
Need to know why the fall is so drastic.
The gearing is 30%, P/B is 0.53
http://foreverfinancialfreedom.blogspot.sg/2015/06/recent-action-fraser-commercial-trust.html
Ho Bee recently announced the sale of an industrial property in Singapore, expected to bring about $7 mil in profits for the company. Development property sales should continue to be challenging in the current year but strong rental revenue from its offices and residential properties should help the company to weather the storm until better economic conditions appear.
http://www.investark.com/Analysis56hobee1q15.html
Market has" ' overdiscounted" challenges facing developers: UOB Kay Hian
March 30, 2015 : 4:26 PM
SINGAPORE (March 30): Investors have " overdiscounted" headwinds facing Singapore-listed property developers such as Wing Tai Holdings and CapitaLand , whose current share prices offer deep value, according to UOB Kay Hian.
One such headwind is rising mortgage rates.
Housing loans are becoming more expensive following the sharp rise lately in the Singapore interbank offered rate (Sibor) and the Swap Offer Rate. Sibor has gone up to more than 1% from 0.4% in the past four months.
Still, affordability remains manageable, according to UOB Kay Hian analysts Vikrant Pandey and Derek Chang, who estimate that every one percentage point rise in interest rates will lead to a $500 increase in monthly mortgage payments for a $1 million, 25-year housing loan.
" Those who are able to rent out their units will continue seeing positive carry as rental yields of 2.5% to 3.5% exceed mortgage rates of 1.5%-2%," they wrote in a note.
The total debt servicing ratio used by banks offers another safeguard, they said, as it factors in a much higher mortgage rate of 3.5% in assessing loan eligibility while actual loans charge lower rates of 1.5% to 2%.
" This leaves room for another 100- to 150-basis-point rise in mortgage rates before the borrower' s ability to repay is impacted," they noted.
That said, property investors are finding it harder to rent out units as more completed homes are released into the market and the number of foreigners in Singapore decreases, pushing up vacancy rates, they said.
" Another 100-basis-point rise in Sibor, or alternatively a 30% drop in rents from here on, would result in the positive carry situation turning into a negative carry situation."
UOB Kay Hian has " buy" calls on Wing Tai, CapitaLand, GuocoLand , Ho Bee Land and OUE and respective price targets of $2.50, $4.08, $2.48, $2.68 and $2.80.
http://www.sharejunction.com/sharej...e=Ho Bee Land&topicTitle=Why Ho Bee UP and UP.
RHB Research 2015-07-06: Ho Bee Land - Strong Balance Sheet, Substantial Exposure in Sentosa. Maintain BUY.
Prices of residential units in Sentosa Cove had plunged sharply in the last few years but transactions are now picking up as buyers stepped up their buying amid a sense that prices have bottomed out.
At The Oceanfront, two condominium units were sold in the $2000 psf range in April, a price not seen since October 2012 where a unit was sold at $2,190 psf. One of the two units was a 2,788 sq ft four-bedder which sold for $5.73m ($2,055 psf) while the other unit was a $1,765 sq ft three-bedder which sold at $3.45m ($1,954 psf).
Other projects in the enclave, from Seascape to The Coast and Turquoise, had also seen a pickup in transactions with done deals ranging from $1400-1600 psf.
We think the play on Sentosa properties is still ultimately about the scarcity story, with a limited stock of some 2000 plus units. The biggest player there is Ho Bee Land (HOBEE SP), which clinched eight sites on the island since 2003 and have since sold most of the projects there, raking in $800m of profits which were recycled to acquire investment properties in Singapore and London.
Its remaining exposure in Sentosa is still substantial: we estimate its portfolio of completed units in Turquoise, Seascape and Cape Royale to be worth some $700-800m.
Most of these units are currently rented out as management awaits a turn in the residential cycle.
Meanwhile, the group has a strong balance sheet with net gearing at a modest 0.3x, and enjoys a stream of recurring income from its investment properties that puts the company in good stead even as the residential market remains uncertain in the near term.
We maintain our BUY rating on the stock and $2.60 TP, which is premised on a 35% discount to our RNAV of $4.01.
http://sgshareinvestor.blogspot.sg/2015/07/rhb-research-2015-07-06-ho-bee-land.html
Need to know why the fall is so drastic.
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