Second Chance Properties Ltd is an entity listed on SGX mainboard. According to the website of Second Chance Properties Ltd , it is involved in 3 core businesses:
- retailing of apparel
- retailing of gold jewellery
- property investment
We noted that the Group has generated consistent profits for at least past five financial year (i.e. FY 2008 till FY 2012). On 27 March 2013, the Group announced its half year result for the period ended 27 February 2013. We noted that the Group continued to be in profit-making position with a profit before tax of S$6.5mil for the half-year ended Feb 2013, as compared to preceding peroid of S$7.3mil. This is despite the increase in Group's revenue of approximately 4.7%.
Based on our personal interpretation, this could be due to:
- the decrease in GP Margin from 59.6% in prior comparative period to 57.9% in current period; and
- the decrease in gain on fair valuation of investment proprerties from S$2.8mil prior comparative period to S$0.4mil in current period
It is noted that EPS (basic) for the 6-month ended 28 Feb 2013 has decreased from 1.74 cents in prior comparative period to 1.04cents in current period. Based on our interpretation, the P/E ratio is about 20x. On the other hand, on 27 March 2013, the Group announced that: barring any unforeseen circumstances, the Group intended to distribute a tax exempt (one tier) dividend of 3.4cents per ordinary shares - this translate to a dividend yield of approximately 8% - assuming a market price of S$0.415.
Does the market value appears to be at a resonable range for you - if the P/E ratio of Second Chance Properties Ltd is at 20x?
- retailing of apparel
- retailing of gold jewellery
- property investment
We noted that the Group has generated consistent profits for at least past five financial year (i.e. FY 2008 till FY 2012). On 27 March 2013, the Group announced its half year result for the period ended 27 February 2013. We noted that the Group continued to be in profit-making position with a profit before tax of S$6.5mil for the half-year ended Feb 2013, as compared to preceding peroid of S$7.3mil. This is despite the increase in Group's revenue of approximately 4.7%.
Based on our personal interpretation, this could be due to:
- the decrease in GP Margin from 59.6% in prior comparative period to 57.9% in current period; and
- the decrease in gain on fair valuation of investment proprerties from S$2.8mil prior comparative period to S$0.4mil in current period
It is noted that EPS (basic) for the 6-month ended 28 Feb 2013 has decreased from 1.74 cents in prior comparative period to 1.04cents in current period. Based on our interpretation, the P/E ratio is about 20x. On the other hand, on 27 March 2013, the Group announced that: barring any unforeseen circumstances, the Group intended to distribute a tax exempt (one tier) dividend of 3.4cents per ordinary shares - this translate to a dividend yield of approximately 8% - assuming a market price of S$0.415.
Does the market value appears to be at a resonable range for you - if the P/E ratio of Second Chance Properties Ltd is at 20x?
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