- Strong 1Q earnings backed by recognition of sales of The Laurels. Sing Holdings' sales and PATMI for the quarter rose by 114.4% and 121.8% respectively yoy, driven by late‐stage recognition of The Laurels project-largely in‐line with expectations. As at end of Mar 2013, 85% of total contracted sales of The Laurels have been recognized. As at now, The Laurelsis 97.3% sold (223 out of 229 units), which means another S$109mil of sales to be recognized in FY13.

- Upcoming property launches still on track. Sing Holdings is on track to launch its two property sites-the Punggol EC in 3Q 2013 and the Robin Site in mid‐2014. The Punggol EC project will have a major P&L impact on Sing Holdings in late FY2015, based on the completion of contract method of accounting. FY2014's earnings will thus be drivenmainly by the sales ofthe Robin Site.

- Selective focus on land sites. Sing Holdings will be taking a conservative and stance in the acquisition of land sites, in the current land bidding environment. We have factored in gradual replenishment of land banks over the next FY13‐15,to a tune of a total of S$250mil.

- Growing asset values. Sing Holdings boasts of potential strong growth in book values over the next three years. We estimate sales of current and future development projects to propel Sing Holdings' book value per share to S$0.95 by FY2015. Its current book value stands at S$0.63, a figure still significantly higher than Sing Holdings' current share price of a mere S$0.415.

- Strongly undervalued; Maintain BUY with FV of S$0.56. We maintain that Sing Holdings presents deep value as a niche developer, and investors stand to gain exposure into a growing NAV story Sing Holdings presents. Trading at only 0.65x P/B and at a steep discount of more than 55% to our RNAV estimate of S$0.93, we believe there is minimal downside risks to Sing Holdings. Sing Holdings remains our choice pick for a value play-maintain BUY with an unchanged fair value of S$0.56 based on 40% discount to RNAV. BUY.

Source: AmFraser