Easy Money New Issue Review : Heeton Holdings


Issuer:           Heeton Holdings Limited
Status:           Direct, unconditional, unsubordinated and unsecured Notes
Rating:          Unrated
Format:         Reg S, S274 & 275 of Singapore SFA
Tenure:          2 Years
Coupon          5.60%
Issue Size:     TBD
Payment:       Semi-annual, actual/365 (fixed)
Details:          SGD250K/Multicurrency Debt Issuance Programme/Singapore Law/CDP
Listing:          SGX-ST

Comparable Bonds :
Hiap Hoe 4.75 2016 – 100.45, 4.57%
Aspial 5 2016 – 101.35, 4.46%
Oxley 4.75 2015 – 100.85, 4.28%

ps : who says Oxley is 100.85 when they just reopened 2 days ago at 100 ?? I like to know where you are seeing bids at please ?

“Established in 1976 and listed on SGX since Sep 2003, Heeton is primarily engaged in property development and property investment. In 2011, Heeton expanded into the hospitality sector with its investment in Mercure Hotel Pattaya, located in
Pattaya, Thailand, the person said.” Source : Bloomberg

It is the name of the game. If you can borrow, just max it out.

This bond is a sure sell. Why ?

Because they are paying a high commission for the private and retail bankers to get it off or you should be seeing a coupon of 5.8% ?

Small company with market cap SGD 175 mio which is all about valuation, I suppose. And its income statement is a good lesson for financial analysis.

Here is a company with an erratic revenue stream with 2011 being their best year for revenues. Their operating income in 2012 is about half of 2011 but their bottom line looks fantastic for this Net Non Operating Gains.  Shareholders and bondholders certainly do need ALOT  of this Net Non Operating Gains going ahead if market sales slow.

On the bright side, Singaporeans are snapping up overseas properties in London and Bangkok so its a good sign that demand is healthy. Reports out of Asiaone and PR Newswire today.

Verdict : I don’t know what to say.