Skip to content
Alpha Edge Investing

Alpha Edge Investing

"Investors operate with limited funds and limited intelligence, they don’t need to know everything. As long as they understand better than others, they have an edge.” – George Soros

  • Home
  • Earnings Updates/ Corporate Actions
  • Research – Equities
  • Research – Fixed Income/ Bonds
  • Research – Unit Trust/ ETF
  • News
  • My Opinions/ Views
  • Others
  • About Me
  • Contact
  • Disclaimer
  • Community and Support Forums
  • Toggle search form

KGI: Ho Bee Land (HOBEE SP) – Sees strong sales traction for Sentosa Cove project

Posted on July 13, 2022July 13, 2022 By alanyeo No Comments on KGI: Ho Bee Land (HOBEE SP) – Sees strong sales traction for Sentosa Cove project
  • BUY Entry 2.76 – Target – 2.99 Stop Loss – 2.66
  • HOBEE has a portfolio that covers many quality residential, commercial and high-tech industrial projects since its establishment in 1987. It is a developer of luxury homes in Sentosa Cove including Cape Royale. Its portfolio of investment properties includes a 1.08m sft of lettable commercial space in The Metropolis, situated at the gateway to the vibrant precinct of one-north. Headquartered in Singapore, HOBEE also has a presence in Australia, China and the United Kingdom.
  • Moved ~50% of units put up for sale, almost a decade after completion. HOBEE recently sold about 25 out of 50 units at Sentosa Cove’s 302-unit Cape Royale that were put up for sale on its first day of bookings last week. Prices for the apartments (with tenancy) hit S$2,103 psf. This compares with Seascape, and Residences at W, which sold at median prices of S$2,680 psf, and S$2,816psf respectively during their launches in March 2010. This comes almost 10 years after the project was completed in 2013 when both HOBEE and partner, IOI Properties, felt that prices were weak after 2 rounds of cooling measures.
  • Share price corrected after initial spurt following insider acquisition. HOBEE’s share price has corrected 9.4% from its YTD high of S$3.08 after Ng Noi Hinoy, the spouse of HOBEE’s executive chairman, Chua Thian Poh, acquired 280,400 shares for S$801,905 or S$2.86 apiece. The acquisition increased Chua’s interest in HOBEE to 75.6% from 75.5%, and consequently free float down to ~25%, triggering perceptions that a buyout was in the pipes.
  • Stable income and dividends akin to REITs. There is a single BUY rating on HOBEE, with TP of S$3.80. More than 90% of HOBEE’s revenue is generated from rental income, enabling HOBEE to pay out DPS of at least S$0.10 apiece over the last 4 years. At current prices, this represents a forward yield of about 3.6%. With an RNAV of S$6.28/share, HOBEE is attractively priced at 0.44x P/RNAV.

(Source: Bloomberg)

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Telegram (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)
Research - Equities Tags:Ho Bee Land Ltd

Post navigation

Previous Post: CIMB: Agribusiness (Neutral) – KL Kepong
Next Post: KGI: Yangzijiang Shipbuilding (YZJSGD SP) – Grows YTD order wins to US$990m

Related Posts

DBS: Singapore Property Research - Equities
DBS: Singapore Residential Research - Equities
DBS: Singapore Residential – City Developments, Ho Bee Land, UOL Research - Equities
DBS: Singapore Property Research - Equities
DBS: Singapore Residential Research - Equities
DBS: Ho Bee Land Ltd – Buy Target Price $3.80 Research - Equities
DBS: Ho Bee Land – Buy Target Price $3.80 Research - Equities
DBS: Singapore Residential Research - Equities
DBS: Singapore Residential Research - Equities
DBS: Singapore Residential Research - Equities
Real estate in an era of inflation News
DBS: Singapore Property: Our dreams, our children’s future Research - Equities

Leave a Reply

You must be logged in to post a comment.

Login

Log In
Register Lost Password
Get new posts by email
Chat on WhatsApp
  • Earnings Updates/ Corporate Actions
  • My Opinions/ Views
  • News
  • Others
  • Research – Equities
  • Research – Fixed Income/ Bonds
  • Research – Unit Trusts/ ETF

Copyright © 2023 Alpha Edge Investing.

Powered by PressBook Grid Blogs theme