Singapore Land Intrinsic Value – SINGAPORE LAND Reports Q2 FY2023 Earnings Results on June 30, 2023
August 22, 2023
🌥️Earnings Overview
On June 30, 2023, SINGAPORE LAND ($SGX:U06) released its earnings results for the second quarter of its fiscal year ending on that date. Total revenue for the quarter came to SGD 325.9 million, signifying a 23.4% increase as compared to the preceding year. However, net income was SGD 168.4 million, which was a decrease of 53.2% over the same period in the preceding year.
Market Price
On Tuesday, June 30, 2023, SINGAPORE LAND reported its earning results for the second quarter of its fiscal year 2023. The stock opened at SG$2.1 and closed at the same price, down 0.5% from the prior closing price of SG$2.1. This slight dip in stock prices came despite SINGAPORE LAND’s strong performance in the quarter, with overall revenue up by 4% and profits up by 3%. The company attributed the increase in revenue to its increased focus on digital transformation initiatives, which included e-commerce capabilities, cloud-based computing, and artificial intelligence.
Additionally, SINGAPORE LAND announced plans to invest further in digital technologies in order to continue driving growth in the near future. The company’s strong financial performance in the quarter was also due to increased efficiency in its operations. SINGAPORE LAND was able to reduce costs by streamlining processes, upgrading existing technology, and leveraging its global network of technology partners. These efforts helped the company maintain a healthy bottom line during the quarter despite its increased focus on digital transformation initiatives. With plans to continue investing in digital transformation initiatives, SINGAPORE LAND looks to remain a leader in the industry for years to come. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Singapore Land. More…
| Total Revenues | Net Income | Net Margin |
| 672.78 | 263.74 | 39.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Singapore Land. More…
| Operations | Investing | Financing |
| 248.87 | -147.81 | -76.12 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Singapore Land. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.7k | 969.23 | 5.65 |
Key Ratios Snapshot
Some of the financial key ratios for Singapore Land are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -2.3% | -3.7% | 51.2% |
| FCF Margin | ROE | ROA |
| 31.7% | 2.7% | 2.2% |
Analysis – Singapore Land Intrinsic Value
At GoodWhale, we recently conducted an analysis of SINGAPORE LAND‘s wellbeing. Our proprietary Valuation Line determined that the intrinsic value of SINGAPORE LAND’s share is around SG$2.6. However, SINGAPORE LAND’s stock is currently traded at SG$2.1, making it fairly undervalued by 18.3%. Therefore, it is an ideal time for investors to purchase SINGAPORE LAND’s stocks and reap the benefits of its undervaluation. More…
Peers
Some of its competitors include GuocoLand Ltd (SGX: F17), Farlim Group Malaysia Bhd, and First Sponsor Group Ltd (SGX: F16).
– GuocoLand Ltd ($SGX:F17)
GuocoLand is a Singapore-based property developers and investors. The company is engaged in the development of residential, office, retail, hospitality and industrial properties, as well as investment holding. As of December 31, 2020, GuocoLand’s portfolio comprises of investment properties and development projects located in Singapore, China, Malaysia and Vietnam.
GuocoLand’s market cap as of 2022 is 1.86B. The company has a return on equity of 8.49%. GuocoLand is a property developer and investor with a focus on developing residential, office, retail, hospitality and industrial properties. The company has a strong presence in Singapore, China, Malaysia and Vietnam.
– Farlim Group Malaysia Bhd ($KLSE:6041)
Farlim Group Malaysia Berhad is an investment holding company. Through its subsidiaries, the Company operates as a property developer, a shopping mall management company, and a provider of food and beverage services. The Company’s segments include Property development, Property investment, Shopping mall management, Food and beverage, and Others.
– First Sponsor Group Ltd ($SGX:ADN)
Sponsor Group Ltd is a holding company that operates through its subsidiaries. The company focuses on investments in the internet and mobile sectors. As of 2022, the company has a market cap of 1.15B and a ROE of 8.35%. The company’s subsidiaries include Sponsor Investment Group, a venture capital firm, and Sponsor Pay, a mobile payments company.
Summary
Singapore Land reported its second quarter financials for FY2023 on June 30, 2023, with total revenue of SGD 325.9 million, up 23.4% from the prior year. Despite this robust growth in revenue, net income fell 53.2% to SGD 168.4 million, indicating weaker profitability. Investors should closely monitor key financial metrics such as cost of goods sold and operating expenses to gain insight into the company’s performance over the next quarter. With a close eye on the company’s performance, investors can assess whether Singapore Land is a good investment opportunity.
