Heeton Holdings

News
10 Sep 09, Heeton divested its wet market businesses for $25.5M to concentrate on its core business of a boutique property developer. The amount will strengthened its balance sheet to snap up more land banks for future expansions.

26 Oct 09, Heeton’s joint development with the Koh Brothers Limited, LSH Holdings Limited and Lian Beng Group of Lincoln Suites was 82% sold within four days of its soft launch.

Outlook

Financials
24 Feb 12, Heeton released their FY11 financial results and their net profit for the year rose 18.2%.

Their two main core business remained at property development and property investment.
Their investment in properties amount to $250.8M mainly comprised of SunPlaza, Tampines Mart, The Woodgrove and Hong Leong Garden Shopping Centre (Joint with 5 other partners)
Their property development includes:
- Lincoln Suites (joint development with Koh Brothers, LSH Holdings and Lian Beng Group)
- The Lumos
- iLiv@Grange
- MacPherson Green
- Camay Court
- The Boutiq_Killiney Road (joint venture)

Future Plans
The group continues to be on the look-out for suitable land-banking opportunities in Singapore and the region. Heeton states on the FY11 results that barring unforeseen circumstances, the Group expects to remain profitable for FY12.

The confidence shown by Toh Giap Eng, CEO and managing director of Heeton is in line with the healthy financial position of the comapny.

Dividend Yield
With the current share price of $0.395, a $0.011 dividend payout will make out a partially low dividend yield of 2.78%.

PE Ratio
With a PE ratio of 3 makes the company very undervalued for the price of $0.395 with the current exceptionally high earnings yield of 33.33%.

Net Asset Value
For the price of $0.395 per share and with a NAV of $1.16 entitles the shareholder a 293% of its asset. In my opinion, this stock will extremely undervalued.


About Heeton Holdings (From SGX)
The Company was incorporated in Singapore on 7 July 1976. On 26 December 2002 it was converted into a public company and changed its name to Heeton Holdings Limited.
The Group is currently engaged in the following activities in Singapore:
- development and sale of private residential properties
- investment in residential, retail and commercial properties
- operation of markets
- management of residential, retail and commercial properties.



Published on 26 Feb 2012