Members Login
Username 
 
Password 
    Remember Me  
REITData -> TalkStock -> SGX - Stocks -> Metro Holdings
Post Info TOPIC: Metro Holdings
KK


Guru

Status: Offline
Posts: 1236
Date:
RE: Metro Holdings
Permalink  

ahkian wrote:

Interestingly, price drop 6c today to $1.03.

Everybody was expecting Special div fm S44 credits ranging fm 15cts to 50cts (fm what I read in forum). Instead, Metro is giving only 5cts (Final 2cts , Special 3cts). aww



__________________
ahkian


Member

Status: Offline
Posts: 69
Date:
Permalink  

Interestingly, price drop 6c today to $1.03.

Extracts from sgx doc submited :
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_65730BDEC00ABAB7482572E3003011E4/$file/mhlfullyrann.pdf?openelement

For the full year, if you just look at the operating profits it improved from $41.8mil to $50.5mil. So its not that bad.

For the year ended march 2007 :

EPS = 10.89c
PER = 1.03/0.1089 = 9.5
NAV = 125.5c (from 103.5c probably due to revaluation of china assets)
DIV  = 5c with 18% tax (same as last year)
Div Yld = 5/103 = 4.8%


Have not decided on what to do yet but will put this stock back on my radar screen again.
This stock is trading below NAV.

-- Edited by ahkian at 23:17, 2007-05-23

__________________
ah Kian
KK


Guru

Status: Offline
Posts: 1236
Date:
Metro Holdings - BT
Permalink  

23 May 07

Metro Hldgs Q4 net profit up 14.28%

RETAILER Metro Holdings reported a 14.28 per cent year-on-year rise in net profit to $19.08 million from $16.69 million for its fourth quarter ended March 31. Turnover climbed 4.78 per cent to $54.7 million from $52.2 million one year ago.

For the full year, the group recorded a 55.5 per cent fall in net profit, from $154.4 million to $68.7 million.

FY2007 recognised an exceptional gain of $29.1 million from the group's disposal of about half its investment in Shui On Land while FY2006 had an exceptional gain of $118 million from the disposal of junior bonds and preference shares in Orchard Square Capital Assets.

Turnover rose 5.71 per cent to $214.2 million from $202.6 million.

__________________
KK


Guru

Status: Offline
Posts: 1236
Date:
Metro Holdings - Fraser
Permalink  

23-Apr-07

Attractive valuations among reasons stock staged another huge breakout to a marginally new $1.10 peak above long standing 1995 record $1.08 high

Trading at a low trailing PE of just 4.2x, price to book of a shade under 1x, ROE of 24.5% and 2006 dividend yield of 3.9% with potential for bigger payout for year ending March 31, 2007 on top of cash backing of 39 cents a share, Metro staged one of its biggest breakouts this month. Although it squeaked through to a slightly higher new peak of $1.10 in the last fortnight on heavy trading with this months volume set to be the busiest since mid-2003, Metro has under-performed the market and its peers in the retail/property sectors, which are trading at much higher

PEs and PBs.

The stock with a market cap of $637.08m, has been consolidating around 80-90 cents for 6 months prior to the latest breakout. The 20-cent rally to $1.10 is not excessive, considering that it has again retreated to the $1 area on short term profit taking on considerably lower volumes.

This will take care of the overbought technical conditions such as RSI, MACD but on a longer term basis, the upturning monthly MACD has just cut its moving average after having been on the downtrend since a year ago when the last peak of 99 cents was seen. The old 99 cent peak (last weeks low) should provide good support as weekly and monthly momentum indicators suggest the stock has a long way to go in chalking up new peaks before it runs out of speed.

While the daily momentum is overheated (being corrected by current pullback), the weekly and monthly numbers are well below their levels during previous rallies, implying exciting upside potential.

Taking its retail peers Robinson, Isetan and C K Tang which are trading at around 1.4-1.5 times book value, Metro whose book value at March 31 2006 stood at $1.03, deserves to reach these ratings which mean a potential share price of $1.40-50.

Currently the company is not well-covered by analysts given its volatile earnings eg third quarter earnings jumped 459.7% to $32.94m after a 90.6% plunge in 2q net profits to $11.38m and 52% fall in 1q earnings to $5.3m.

But last year the group saw earnings surging 445.5% to $148.37m from $27.2m in fy2005. EPS had stood at 23.7 cents thus the low historical PE of 4.2x. There is no consensus earnings forecast.

Interesting situations may also develop at Metro given its strong presence in Chinas property sector as well as the fact that major shareholder Jopie Ong had last year raised his stake to 29.77%, a whisker below the 30% takeover trigger.

Metros cash coffers of $244.82m at March 31 2006 have been boosted by the sale of 70m Shui On Land shares and warrants last October raising $76m. Besides Section 44A tax credits, excess cash may be returned to shareholders. This should be clear when Metro releases its full year results around May 19.

Investors with a 1-2 month view should accumulate the stock on any weakness at the high end of the 90 cent -$1 region as the stocks downside is underpinned by the 6-month base building between 80-90 cents. Initial upside potential is $1.20 as the stock moves towards its fair value of $1.40-50.



__________________
KK


Guru

Status: Offline
Posts: 1236
Date:
Metro Holdings - Lim and Tan
Permalink  

Extracts fm Lim and Tan Report dated 20-Sep-06,

Already Counting Chickens


  • Metro has provided details of the expected gains from the imminent listing of Shui On Land (SOL), in which it first invested in 2004.
  • Depending on the actual price for the IPO (HK$4.80-5.35), Metro will realize profit of S$23.9 - 29.2 mln (3.8-4.6 cents per share) from the sale of 70 mln SOL shares that it will receive from the mandatory conversion of the preference shares held.
  • Proceeds are estimated at HK$336 - 374.5 (S$68.6 - 76.4 mln, of which S$33.5 mln will be used to repay bank borrowings. The balance will be “added to the working capital of Metro and used to build on its presence and investment in the region through selective positioning, new investments and strategic alliances with a view to expanding the revenue stream and facilitating sustained profitability going forward”.
  • In May 2004, Metro invested US$50 mln in the 7.5% Senior and 7.0% Junior Convertible Redeemable Participating Preference Shares (SPPS /JPPS). On an IPO of SOL, the SPPS and JPPS will be mandatorily converted into ordinary shares: between 146.3 mln and 139.2 mln, based on the indicative prices of HK$4.80 or HK$5.35.
  • In Oct ’05, Metro invested US$27 mln in the 8.5% 2008 Senior Notes of SOL, which came with warrants exercisable into 8.1 - 8.0 mln SOL shares.
  • The remaining 69.2 - 76.3 mln SOL shares that Metro is entitled to cannot, without the consent of SOL, be sold for a period of 6 months after listing. At HK$4.85 - 5.35, Metro has unrealized profit of S$29.8 - 32.7 mln. And the unrealized profit from the shares arising from the exercise of warrants would amount to S$5.0 - 5.8 mln.
  • Assuming full divestment, Metro’s NTA will increase to $1.122 - 1.136, from $1.035 per share.
  • Metro’s share price has risen 7.5 cents or 9.8% in 4 days to 84 cents on Sept 18/19, suggesting the market has been pricing in yet another generous payout by the company.


__________________
KK


Guru

Status: Offline
Posts: 1236
Date:
Metro Holdings - Shui On Land
Permalink  

BT, June 15, 2006, 10.12 am (Singapore time)

Shui On Land postpones IPO in deteriorating market 

HONG KONG - Shanghai-focused property developer Shui On Land Ltd said on Thursday it had postponed its Hong Kong initial public offering due to deteriorating market conditions. Shui On Land said in a statement the company 'looks forward to re-launching the offering at the earliest suitable opportunity'. It did not give a timetable for the relaunch.

The property firm, which turned a cluster of shabby century-old houses in Shanghai into the trendy Xintiandi bar and dining area, had braved rocky markets to begin marketing the IPO last week to raise up to US$984 million to fund its projects in Shanghai, Chongqing and Wuhan.

Shui On Land, in which Hong Kong-listed Shui On Construction and Materials Ltd holds a 22.8 per cent stake before the IPO, was offering 1.017 billion shares at HK$5.60 to HK$7.55, representing a discount of 3.2 to 26.7 per cent below the net asset value estimated by its underwriters, a listing document said.

Fund managers expected the deal, which comes as Beijing takes steps to cool the country's property market, to be priced towards low end of the proposed range at about HK$5.90 per share. -- REUTERS



__________________
KK


Guru

Status: Offline
Posts: 1236
Date:
Metro Holdings - Shui On
Permalink  

BT, Published June 13, 2006

Metro unit seeks to raise $93m from Shui On stake

MetroProp (China) offering 60m vendor shares in Shui On Land IPO


METRO Holdings subsidiary MetroProp (China) is hoping to raise as much as $93 million by selling its shares in Hong Kong property developer Shui On Land which launched its initial public offering (IPO) on the Hong Kong stock exchange yesterday.

In a press statement released yesterday, Metro Holdings said it will use $37 million of the net proceeds to repay outstanding bank loans. The balance will be added to the group's working capital and used to build on Metro Holding's presence and investment in the region, and will include, 'new investments and strategic alliances with a view to expanding the revenue stream of the group and facilitating sustained profitability going forward'.

Already, Metro Holdings has a $65 million (50 per cent) stake in a shopping mall on a 350,000 sq ft site in Beijing, acquired in December 2005. Also in the same month, Metro Holdings said it would pump US$15 million into a company that indirectly owns a five-star hotel in Beijing.

MetroProp, which is 94 per cent owned by Metro Holdings, took a stake in Shui On Land in May 2004 by subscribing for 30 million senior convertible redeemable participating shares (SPPS) of US$0.01 each in the capital of Shui On Land and 20 million junior convertible redeemable participating preference shares (JPPS) of US$0.01 each at a subscription price of US$1 per SPPS/JPPS.

On the IPO of Shui On Land, the SPPS/JPPS have been converted into ordinary shares and MetroProp is expected to receive between approximately 130.9 million and 116.5 million ordinary shares of US$0.0025 each. The indicative price range of each Shui On Land share under the IPO is HK$5.60 to KH$7.55 per share.

In 2005, MetroProp raised its investment in Shui On Land by subscribing for US$27 million of senior notes due in 2008 issued by Shui On Development (Holding), a wholly owned unit of Shui On Land. The senior notes were issued with warrants exercisable for ordinary shares. MetroProp is expected to receive between 7.6-7.9 million shares under the IPO.

The net book value of the investment as at March 31, 2006, was about $86.1 million.

MetroProp will be offering 60 million shares - part of which will be included in an overallotment option - for sale at the IPO and will not sell any more shares for six months without consent of Shui On land. The group expects to see net exceptional gains of $25.9-$43.4 million from the disposal of shares. The balance not disposed is expected to see unrealised gains ranging from $34.9-$45.8 million.

Shares received from the conversion of warrants is expected to result in unrealised gains of $6.1-$8.9 million. Had the disposal been effected on 1 April 2005, the earnings per share of the Metro Group would have increased from 23.66 cents to 26.95-29.68 cents.



__________________
KK


Guru

Status: Offline
Posts: 1236
Date:
Metro Holdings - Lim and Tan
Permalink  

Extracts fm Lim and Tan Report dated 22-May-06,


  • Metro’s 3 cents per share special dividend, on top of the normal first & final dividend of 2 cents (translating to a net yield of 5% @ 79.5 cents), will likely provide some support to the share price, which has fallen much in recent weeks.
  • While the overall market weakness is a contributing factor, we believe more of the blame can be attributed to the latest measures to check the property market in China, especially the proposed capital gains tax of 20% if properties are sold within 5 years. This is stiff.
  • In the first quarter, prices dropped more than 10% in Shanghai, the largest drop in the country, and which matters to Metro and its partner Shui On Land, which is seeking a listing on the HK Stock Exchange. (Metro invested US$50 mln in the 11.8% preference shares issued by Shui On Land.)
  • Metro reported net profit of $16.69 mln for Q4 ended Mar ’06, bringing the total for the fiscal year to $154.43 mln. Note that Other Income, including Interest Income and principally dividend from the preference shares, amounted to $23.3 mln in Q4 and $43.63 mln in the fiscal year. Exceptional profit of $119.2 mln recorded in Q2 ended Sept ’05, arose from the sale of its 27% stake in Ngee Ann City to Macquarie Prime Reit. What all this implies is the growing insignificance of Metro’s retail operations.
  • Offering net yield of 5% and trading at 23% discount to book NTA, and down almost 20% from the peak, Metro merits a BUY on Weakness.


__________________
tfwee


Veteran

Status: Offline
Posts: 581
Date:
RE: Metro Holdings
Permalink  

Extracted From UOB Kay Hian

In search of value: Metro Holdings (METRO SP) – Fair Value (S$1.15)

It is becoming difficult to find a value plays among property stocks. In this light, we take a look at Metro. We think Metro has a compelling case as a value play:

· Stock trades at a 12% discount to NAV (S$1.01), and is largely backed by cash and hence discount is unjustified.
· Cash and equiv. of 53 cents and net cash of 37 cents, meaning that NAV is backed by 37% net cash!
· Other portions of NAV include investment in Shui On Land (SOL) and other properties, which deserve to trade at least at book if not more.
· Section 44 Tax Credits could be dished out to shareholders as part of a special dividend.

Metro's investment in SOL is about 20% of Metro's NAV and comprises of junior and senior preference shares/notes, which can be converted to common shares upon SOL listing. SOL is likely to list on HKSE sometime in 1H06 and that should crystallize Metro's investment in SOL. Meanwhile, Metro continues to earn 11%+ dividend from the investment.

Upon listing, SOL's share price could also see upside as the company holds a very interesting set of properties including the Rainbow City, Xintiandi, Chuangzhi Tiandi among others in Shanghai and huge landbanks in Wuhan. SOL is also developing a Xintiandi based concept in Chongqing.

Given the positives on SOL and the impending listing, Metro's stake in SOL should be taken at least at book if not higher. Removing the net cash portion and SOL from Metro's NAV computation, the remaining properties are trading at a 20% discount to book. These include: Metro City, Metro Tower, GIE Tower and Gurney Plaza among others, which we believe deserve to trade at least at book and possibly higher.

Overall, Metro provides a compelling investment case backed by cash and NAV and the stock's fair value is about S$1.15 (approx. 30% return).

Comment: KK has comment on this stock at this http://pickstock.blogspot.com/2005/07/metro-case-study.html

__________________
Fortune favors the Bold
KK


Guru

Status: Offline
Posts: 1236
Date:
Permalink  

Friday January 13, 5:44 PM
HK Shui On Land Plans To Raise US$1B In IPO In Mar-Source

HONG KONG (Dow Jones)--Chinese property developer Shui On Land Ltd. is planning to raise up to US$1 billion in a Hong Kong initial public offering in March, a source familiar with the situation said Friday. It will be the company's first foray into international capital markets since October, when it raised US$375 million in corporate bonds to finance existing projects.

Shui On Land, headed by Vincent Lo, developed Shanghai's fashionable Xintiandi district. A member of Hong Kong-based Shui On Group, Shui On Land was created in 2004 to become the flagship vessel for the group's property assets in China.

Shui On Construction & Materials Ltd. (0983.HK) owns 21% of the Chinese company, while Shui On Properties holds 41%, according to Shui On Land's Web site. Its largest foreign shareholder is Ergo Tru Asia Ltd., a Singapore-based real-estate investor. Ergo and other investors, including Singapore-listed Metro Holdings Ltd. (M01.SG) and Citigroup Venture Capital International invested in the bond deal, as did JP Morgan & Chase (JMP) and BOC International Ltd.

The source added that the participation of institutional investors in the bond deal, including real-estate specialist Ergo, should boost investor interest in the upcoming IPO. Analysts believe strategic investment by major foreign institutions in Chinese companies eyeing initial public offering help improve pre-IPO due diligence, making the process more transparent and attractive to equity investors.



__________________
tfwee


Veteran

Status: Offline
Posts: 581
Date:
Permalink  

Singapore's Metro Holdings unit to invest 15 mln usd in Beijing hotel parent
06 December 2005, 08:39

SINGAPORE (XFN-ASIA) - Metro Holdings Ltd said its 100-pct owned subsidiary Crown Investments Ltd will invest 15 mln usd in Beijing International Art Palace Co Ltd, the owner of Crowne Plaza Hotel in Beijing.

Under the terms of the investment, Crown Investments will subscribe to a secured note of Chigwell Holdings Ltd, a Hong Kong-incorporated holding company that controls 59 pct of the hotel parent.

"Chigwell's issue of 15 mln usd in principal amount of note is to partially fund its acquisition of its 59 pct interest in Beijing International Art," Metro Holdings said. "The note will entitle Crown to a cash coupon of 15 pct per annum of the principal amount of the note, payable on a quarterly basis," it said.

__________________
Fortune favors the Bold
KK


Guru

Status: Offline
Posts: 1236
Date:
Permalink  

Ya, prepare for possible negative mkt reaction tomom. I hv updated the blog at StockPick with the latest results.

__________________
ahkian


Member

Status: Offline
Posts: 69
Date:
Permalink  

A little disappointed with the no dividend announcement.
Company now has lots of cash and low debt.



__________________
ah Kian
KK


Guru

Status: Offline
Posts: 1236
Date:
Metro Holdings - Mid Yr Results
Permalink  

Mid Year Results are out at SGX. No Interim / Special Dividends!


  1. NAV = 101.2 cents

  2. Cash + Bank Bal = $269.92Mil

  3. Short Term Investments = $67.432Mil

  4. Bank Borrowings = $62.719Mil

  5. Long Term Bank Borrowings = $44.219Mil


__________________
KK


Guru

Status: Offline
Posts: 1236
Date:
Metro Holdings
Permalink  

BT Published October 13, 2005
Metro ups investment in Shui On Land
Its unit subscribes for US$27m of bonds issued by Shui On Devt (Holding)

METRO is increasing its investment in Shui On Land (SOL), which owns the Xintiandi entertainment strip in Shanghai and other projects in China. The Singapore-listed retailer and property group said yesterday its 94 per cent-owned subsidiary MetroProp (China) has subscribed for US$27 million of senior notes due 2008 issued by Shui On Development (Holding), a wholly owned unit of Shui On Land. In all, the Shui On unit is issuing US$375 million principal amount of senior notes to fund SOL Group's recent acquisition of development rights and the payment of project development costs.

SOL was set up last year by Shui On Group, controlled by Hong Kong tycoon Vincent Lo Hong-sui. Mr Lo pumped Xintiandi and some of his other prime mainland China projects into the Shanghai-based company. SOL has attracted interest from institutional real estate and private equity investors. Besides Singapore's Metro Holdings, they include Ergo Tru Asia, Citigroup Venture Capital International, Ocean Equity Holdings, Value Partners Funds, Standard Chartered Bank and Shanghai Hotel Investments. SOL, which has mixed-use urban developments and integrated residential projects in Shanghai, Hangzhou, Chongqing and Wuhan, is expected to be floated at some time.

Metro said yesterday the US$27 million senior notes it has just subscribed for are issued together with warrants that can be exercised into ordinary shares of SOL after it is listed. 'The senior notes are issued together with warrants exercisable for the fair value of, or - subject to certain conditions - the purchase of a certain number of ordinary shares of SOL, on June 30, 2007, and various subsequent dates, provided that following a qualifying IPO the warrants may be exercisable at any time on or after such IPO,' Metro announced. The latest senior notes have an annual cash coupon of 8.5 per cent, payable semi-annually, and the notes are to be redeemed three years from the issue date. The gross income of about $1 million per quarter would represent about 7.1 per cent of Metro Group's total operating profit before tax of $14 million for the three months ended June 2005.

In February last year, Metro subscribed for US$50 million of senior and junior convertible redeemable participating preference shares in SOL.

Metro said the investment in SOL it announced yesterday would help mitigate the cessation of interest income following the sale earlier this year of the group's interests in junior bonds and preference shares of Orchard Square Capital Assets, which had securitised a 27 per cent stake in the Ngee Ann City retail and office complex. The bonds were eventually redeemed and the stake in the choice Orchard Road property sold to Prime Reit, which was floated on the Singapore Exchange last month.



-- Edited by KK at 23:34, 2005-10-13

__________________
KK


Guru

Status: Offline
Posts: 1236
Date:
Permalink  

Extract fm financeasia dated 13 October 2005,

Shui On lands dollar debt
Mainland property group broadens market access for Chinese credits

The unlisted flagship of one of China's most well known businessmen made its debut in the international bond markets yesterday (October 12). Vincent Lo's Shui On Land raised $375 million from a three-year private placement led by JPMorgan, the firm's main financial advisor and probable lead manager of a Hong Kong IPO expected some time next year. Pricing of the unrated bond deal came at par on a coupon of 8.5% to yield 424bp over Treasuries or 380bp over Libor. As an additional sweetener, the deal was structured with a tranche of free warrants, equating to 3.1% of the company's share capital.

Analysts estimate the warrants are worth roughly $95 million and can be exercised over a staggered period prior to an IPO, or immediately thereafter. They can also be redeemed in shares or cash at the company's discretion.

On top of this, Shui On incorporated a call option, which allows it to call the deal away immediately and for life.

Because the transaction is a private placement and the company is unlisted, full distribution details have not been made available, nor has the company released much information about its capital structure or credit ratios. As such, the bond offering was heavily tilted towards existing investors including Chairman Lo. Specialists report an order book with participation by less than 30 investors, of whom 65% already hold equity stakes.

The bond deal follows a preference share issue last summer, which sourced private equity investment from a group of eight international investors comprising: Germany's Ergo Tru, Metro Holdings, Citigroup Venture Capital, Ocean Equity Holdings, Value Partners Funds, Standard Chartered Bank, Shanghai Hotel Investments and Jebsen & Co. The eight subscribed to $350 million in preference shares, which can be convertible into one new common share of Shui On Land at up to $1.35 per share.

The preference shares were structured with two tranches. A junior tranche has redemption rights over six years and yields 7% on semi-annual basis. A senior tranche has redemption rights over five years and yields 7.5% on a semi-annual basis. Holders of the senior tranche are also entitled to a further 7.5% per annum, payable either at redemption or on conversion into ordinary common shares.

On conversion the eight will own 27.73% of the company, while Hong Kong listed Shui On Construction will hold 24.57% and Shui On Company the remaining 47.7%.

Specialists say a high yield bond represents an obvious next step for Shui On since it is cheaper form of funding than equity. Specialists say the cost of equity for a Mainland property developer currently averages 17% to 20%.

At a time when it has huge capital raising needs and the Mainland government is trying to cool down the domestic property market, it would also seem to make sense for Shui On Land to try and diversify its funding sources away from a less receptive domestic bank market.

But comparables are few and far between. At one end of the rating scale is China Overseas Land, which has a Baa3/BBB- rating and a 5.75% 2012 bond outstanding. This is currently yielding about 6.44% or 205bp over Treasuries. Towards the other end of the rating scale is the Shanghai-based Fosun group, which also has huge property investments and is currently marketing a $500 million deal with a seven-year maturity. The Ba3/BB- rated group has been targeting a yield around the 9% area, although the deal has yet to price. Specialists say the curve between three and seven years is worth about 90bp to 100bp and without the warrants it seems likely Shui On would be looking at a yield of up to 11.5%. The Asian high yield market currently appears to be in a bit of a trough, which is not making the execution of any deal particularly easy.

Where Shui On is concerned, the new bond deal ranks far down the capital structure. It is unsecured, unrated and unlisted. It does have a high yield covenants package, but specialists say the company's subsidiaries retain a lot of operational freedom and will be able to leverage up to 60% in terms of debt to assets.

The deal has also come at a time when considerable uncertainty surrounds the Mainland property market and particularly Shanghai where nearly half the company's land bank is located. Some analysts believe the government will not be happy until it has seen prices in the city drop by at least 50%. Moreover, the intricacies and complexities of the China property market are not well understood by international investors.

On the plus side, Vincent Lo is considered one of the most visionary property developers on the Mainland and his humanist, environmentally friendly approach has always played well with international audiences. The group currently has a land bank of over eight million square metres of gross floor area (one of the three largest in China) and Lo has said it will require investment topping $8 billion. He also recently announced plans to try and replicate Silicon Valley in Shanghai via a $1.2 billion project to develop an area around the Yangpu university area. The 839,000 square metre project is scheduled for completion in 2011.

Lo's most well known project to date is Xintiandi - a residential, office and commercial development in the heart of Shanghai that has won countless awards. Rather than bulldoze the historic Shikumen houses that stood on the site, Lo renovated them to great acclaim. In neighbouring Hangzhou he has also taken a conservationist approach with Xihu Tianti, a 30,000 square metre retail complex adjoining West Lake, one of China's premier tourist sites. In Chongqing he has acquired land on the banks of the Jialing river to develop a residential village in the style of the province's hill towns. This is due for completion in 2014. More recently he acquired a 514,000 square metre development in Wuhan and also has a 1.2 million square metre residential project in Shanghai and 230,000 retail project known as Rainbow City. Mainland TV viewers will also shortly see Lo front a new programme called "The Winner," which has been designed to ape the success of Donald Trump's show, "The Apprentice" in the US. Bond investors, however, will no doubt be praying Lo does not similarly follow the flamboyant US property magnate straight into the bankruptcy courts.

__________________
KK


Guru

Status: Offline
Posts: 1236
Date:
Permalink  

Extracts fm SGX Announcement,


INVESTMENT OF US$27 MILLION IN SENIOR NOTES OF SHUI ON LAND LIMITED GROUP


1. Introduction

Metro Holdings Limited (“Metro” or the “Company”) wishes to announce that its 94% owned subsidiary, MetroProp (China) (“MetroProp”), has subscribed for US$27 million (approximately S$45.7 million) of Senior Notes due 2008 (“Senior Notes”) issued by Shui On Development (Holding) Limited (“SODH”), a wholly-owned subsidiary of Shui On Land Limited (“SOL”) (the “Investment”).

2. Information Relating To The Investment

SOL is a premier real estate developer, owner and operator in China, focusing on city core development projects (i.e. large-scale, mixed-use, urban developments) and integrated residential development projects (i.e. high-quality, integrated residential projects targeting the urban middle classes). SOL’s projects are situated in Shanghai, Hangzhou, Chongqing and Wuhan.

MetroProp currently holds 50 million senior and junior convertible redeemable participating preference shares (“Preference Shares”) of US$0.01 each in SOL, which it subscribed for at the price of US$1.00 each or US$50 million (approximately S$84 million) in aggregate. Details relating to the subscription of the Preference Shares were announced by Metro on 19 February 2004.

SODH’s issue of US$375 million in principal amount of Senior Notes is to fund the SOL Group’s recent acquisition of development rights and the payment of project development costs. The Senior Notes will entitle holders thereof to a cash coupon of 8.5% per annum of the principal amount of the Senior Notes, payable on a semi-annual basis. The Senior Notes are to be redeemed on the third anniversary of the date of issuance. The Senior Notes are issued together with warrants (“Warrants”) exercisable for the fair value of, or, subject to certain conditions, the purchase of, a certain number of ordinary shares of SOL, on 30 June 2007 and various subsequent dates, provided that following a qualifying initial public offering (“IPO”), the Warrants may be exercisable at any time on or after such IPO.

3. Rationale

The Investment is in line with the stated intention of the Company to build on the Metro Group’s presence in the region including subscribing for, acquiring or otherwise investing in, quoted or unquoted interest-bearing debt securities with a view to facilitating sustained profitability going forward.

The Investment will also provide a means to help mitigate the cessation of interest income, as a result of the recent divestment of the Group’s interests in the junior bonds and preference shares of Orchard Square Capital Assets Limited (“OSCAL”).

4. Consideration

The consideration of US$27 million (approximately S$45.7 million) for the Investment represents about 11.5% of the Company’s current market capitalization of S$397.4 million. On an assumed yield of about 8.5% per annum attributable to the Investment (of US$27 million), the Investment is expected to yield gross income of about S$1.0 million in each quarter. This would represent approximately 7.1% of the Metro Group’s total operating profit before tax of S$14.0 million for the 3 months ended 30 June 2005.

The consideration for the Investment was funded from internal resources, including the net proceeds from the divestment of the Group’s interests in the junior bonds and preference shares of OSCAL, as well as some additional borrowings as a hedge against currency exposure (as part of the Group’s risk management strategy).

5. Financial Effects

Based on the audited results of the Metro Group for the year ended 31 March 2005, had the Investment been effected in full on 1 April 2004, the earnings per share of the Metro Group would have increased from 4.92 cents to approximately 5.38 cents. Had the Investment been effected in full on 31 March 2005, there would not be any significant impact on the net tangible assets per share of the Metro Group.

6. Interests of Directors and Controlling Shareholders

None of the Directors or controlling shareholders of the Company has any interest, direct or indirect, in the Investment otherwise than through their shareholding interests in the Company.

BY ORDER OF THE BOARD

Tan Ching Chek and Lee Chin Yin
Joint Company Secretaries
12 October 2005

__________________
ngkf


Newbie

Status: Offline
Posts: 1
Date:
Permalink  

                        14 Sept           6 Oct


Metro                 0.555            0.655
CK Tang            0.380            0.575
Hong Fok           0.240            0.530
Isetan                 3.74              4.48
Wheelock           3.22              4.00
Bonvest              0.57              0.84
Orchard Parade   0.46              0.825
Hotel Properties  1.47              1.63


According Zaobao's news dated 05 Oct 05:


Hong Fok's International Building could be re-rated from 143mils to 200mils or above (if the 'Orchard Turn'tender price hit 2 billions)


Qwner of Liat Tower and Sheraton, Bonvests' overall properties values could be at least 320mils or $0.97 per share.


Whellock's overall properties values could be at least 3.77 per share.



__________________
ngkf
KK


Guru

Status: Offline
Posts: 1236
Date:
Permalink  

AGM over, mid-yr (Sep-05) results soon. Am expecting special div of 5ct-10ct after they sold off their remaining stake in Ngee Ann City (in bonds) to Ergo. If no special div, may drop as price had been moving up fm $0.50 to current level.


The mkt insanity yesterday is due to Orchard Turn tender. Ppl think tender price will hit $2Bil, thus driving up valuations of properties aro' Orchard Rd. All listed cos. (CKTang, Ascott, Orchard Parade,...) with existing properties in Orchard all shot up. I think they forgot that Metro already sold off their Orchard Rd assets :D


Mkt returning to sanity today, with DJ -123.75, FTSE -66.6 and Nikkei -223. I expect Metro will correct to 61-65cts.


Nevertheless, Metro is still at 30%+ discount to NAV of $1. Maybe I'll buy if it can hit 61-63cts :D



__________________
ahkian


Member

Status: Offline
Posts: 69
Date:
Permalink  

Stock trending up since Jan this year.
Slowly but steady.
Yesterday volume spike at 12mil


When is their AGM ?


Whats the buz?


 



__________________
ah Kian
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
REITData -> TalkStock -> SGX - Stocks -> Metro Holdings
Tweet this page Post to Digg Post to Del.icio.us


Create your own FREE Forum
Report Abuse 		Powered by ActiveBoard