FY2008 results. Sing Holdings reported FY2008 revenue of $20.7m (-77.7% yoy) and net profit of $1.4m (-94.4% yoy). Revenue and profit were much lower as there was no major sale of residential properties. In addition, there was absence of sale of investment property and fixed assets. Furthermore, due to the fall in property prices, there was no revaluation surplus on investment property.

Earnings estimates for FY2009F to FY2011F. Due to the negative impact from the global financial crisis, we are expecting Sing Holdings to report a loss of S$0.6m in FY2009F. A slight improvement in the property market in FY2010F is expected to produce a profit of S$2.5m. We feel that property sales are likely to pick up in FY2011F, resulting in profit of S$11.1m.

Outlook for FY2009F. Sing Holdings highlights that sentiment in the property market is weak. It is monitoring the property market closely so that it can decide on a suitable time to launch its “BelleRive” project at Keng Chin Road. Moreover, it is in the planning stage for “The Laurels” project and has not contracted the building works.

Downgrade from BUY to HOLD recommendation, fair value reduced from $0.92 to S$0.305. In view of the slowdown in purchases of residential properties, we are downgrading the stock from buy to hold recommendation. We remain cautious on property stocks although most of the bad news has been priced into the stock price. As we are expecting further falls in property prices, we are applying a 50% discount to the RNAV of S$0.61. This gives a value of S$0.305 for the stock.