Selangor Dredging Berhad (SDRED 2224)
Start up as a tin mining company, diversify into and focus into property development sector. 10 years in the property industry
- a stable growth of revenue of MORE THAN 300% over 10 years,
2003(69m )---->2013(278m)
-Looking at the recent 2 quarter, SDB manage to break through 100m of revenue per quarter.
-Growing Earning Pershare of 330% over 10years
2.62 cents ---> 11.28 cents
-Growing Profit attributed to shareholders of 336% over 10 years
2003(11m) --->2013(48m)
-Good Profit Margin of 30% on business
-Debt to equity ratio (47:53)
-Borrowing 580m (345 secured loan, 180m revolving credit, 55m unsecured loan), borrow at 4-5%, to generate 30% profit margin, healthy debt
-Owned Hotel Maya KL which generate 20-27m revenue annually (worth 150m)
-Owned Wisma Selangor Dregging (worth 277m), which has been pledged for security for borrowing
On Going Project (Malaysia)
1. By the sea (Batu ferenggi Penang) GDV Rm230m
2. Windows of the park (Cheras) GDV Rm523m
3. Laman & Bayu (puchong) GDV Rm107m
4. The Hub (ss2) GDV Rm337m
5. SqWhere (kota damansara) GDV Rm630m
On going project (Singapore)
1. Village (pasir panjang) GDV SGD 260m
2. Hijauan on cavenagh (district 9) GDV SGD 55m
3. OKIO (Balestier Road) GDV SGD 102m
With current RM2.86 billion project carried out on hand with the project year range of 2012-2017.
- Taking a minimum of 20% of Net profit margin of the total on going project of 2.86 billion, it sums up to 572m
-572Million earning ÷ 426million share outstanding = Rm1.34 cents earning ÷ 6years (project range) = 0.22cents annually
-Assume it's trading at 8 times fair PE, it will be trading at Rm1.76
Valuation
2013 EPS 11.28
With the estimated 10% growth of EPS for the upcoming years, Using 10years discounted earning pershare method,
-Intrinsic value Rm1.60