Stock Name: Tuan Sing
Company Name: TUAN SING HOLDINGS LIMITED
Kim Eng Research in a Jan 3 research report says: "Tuan Sing Holdings' (TSH) share price has underperformed the Straits Times Index in the past six months and may continue to reel from the impact of the new Additional Buyer's Stamp Duty (ABSD) imposed on private residential property purchase.
"TSH has two residential projects at Cluny Park and Seletar that are due to be launched in the new year. Property development is estimated to account for 53-73% of its pre-tax profit for FY2011F-2012F. Faced with the ABSD, which will crimp demand from foreigners and permanent residents Singaporeans who are not first-time home buyers, TSH may have to dangle incentives to lure buyers - a move that could lead to pressure on margins.
"The stock is trading at a steep 47% discount to its book value. We cut our target price from 48 cents to 24.5 cents. DOWNGRADE TO HOLD."
Company Name: TUAN SING HOLDINGS LIMITED
| Research House: Kim Eng | Price Call: HOLD | Target Price: 0.245 |
Kim Eng Research in a Jan 3 research report says: "Tuan Sing Holdings' (TSH) share price has underperformed the Straits Times Index in the past six months and may continue to reel from the impact of the new Additional Buyer's Stamp Duty (ABSD) imposed on private residential property purchase.
"TSH has two residential projects at Cluny Park and Seletar that are due to be launched in the new year. Property development is estimated to account for 53-73% of its pre-tax profit for FY2011F-2012F. Faced with the ABSD, which will crimp demand from foreigners and permanent residents Singaporeans who are not first-time home buyers, TSH may have to dangle incentives to lure buyers - a move that could lead to pressure on margins.
"The stock is trading at a steep 47% discount to its book value. We cut our target price from 48 cents to 24.5 cents. DOWNGRADE TO HOLD."
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