The Wealth List - Singapore Top 40 Richest

In this week series, I will detail the Who's who in Singapore. Living in Singapore, you definitely need to know the big and influential people here. There you go:  

Taken from Forbes-compiled Singapore 40 richest (as of March 2013), below details the 40 richest person in Singapore (for exact URL refer - http://www.forbes.com/singapore-billionaires/list/ )

1) Ng Robert & Philip - Net Worth $10.1b/Real Estate

Inherited from their late father, Ng Teng Fong, brothers Robert and Philip Ng is the richest among the Singapore billionaires. The Singapore Far East Organization is quoted on Forbes.com that it build one in six of the private homes in Singapore. Biggest part of their wealth is in public Tsim Sha Tsui Properties who is headed by the elder Robert. Younger brother Philip manages the Singapore's business.

2) Khoo Family - Net Worth $6.7b/ Banking

Late banker Khoo Teck Puat left fortune to his 14 children in 2004 when he passed away. Of the most important asset which was left by him was a stake in Stanchart which the Khoo family sold in 2006 fetching an estimated $4 billion. The family continues to control the Goodwood Group of Hotel.

3) Wee Cho Yaw - Net Worth $5b/ Banking

Mr Wee is the emeritus chairman of Singapore bank, United Overseas Banks. It was founded by his dad and run by him for 33 years until 2007, when he passed on the role of CEO to his son Wee Ee Cheong. The family also own a property developer and private equity company Kheng Leng. Singapore listed Haw Par, which family owns nearly one quarter of it, is the producer of Singapore iconic Chinese ointment Tiger Balm.

4) Kwee family - Net Worth $4.6b/ Real Estate

Kwee family is one of the biggest landlords as the four Kwee brothers jointly owned privately held property developer and hotel operator Pontiac Land. Its portfolio of prime properties includes Ritz-Carlton, the Regent, Conrad Centennial and the Capella in Singapore. Recent project include Capitol Center, a $600m luxury property development in which they have a 50% stake. Kwee Liong Kent, the eldest, is the managing director. Kwee Liong Tek is chariman. Other brothers Kwee Liong Seen and Kwee Liong Phing sit on board.

5) Richard Chandler - Net Worth $2.85b/ Investment

New Zealand native Richard Chandler, a resident in Singapore, runs Rchard Chandler Corp, a fund aimed at emerging markets that he found after splitting with his brother Christopher.

6) Kwek Leng Beng & family - Net Worth $2.4b/ Diversified

The Kwek family inherited conglomerate Hong Leong, started by their fathers in the 1940s. Kwek Leng Beng owns the Singapore business while his cousin Quek Leng Chan heads the Malaysian business. Kwek Leng Beng is the owner of City Development and Guocoland.

7) Kuok Khoon Hong - Net Worth $2.6b/ Palm Oil

Kuok holds a minority stake in Wilmar International and is also the CEO of its. Wilmar is the world's largest palm oil company. It is now expanding into speciality chemicals with Clariant and processed foods with Archer Daniels. His other investment includes Zhong Sheng Jian's Yanlord and London's Aviva Tower.

8) Eduardo Saverin - Net Worth $2.2b/ IT

Facebook co-founder Eduardo renounced his US citizenship in 2011 and took up Singapore resident. He has since sold more than half of his stake in Facebook and has started to invest in startups including Qwiki and Jumio, which created the online payment Netswipe.

9) Peter Lim - Net Worth $2b/ Investment

As a former stockbroker, Peter Lim make his big bucks from Wilmar International. Since then, he is busy partnering with UEM land to build Motorsport City in Iskandar region. His Thomson Medical is partnering with Johor's royal family to build a medical hub as part of a $3 billion integrated development called Vantage Bay which is being developed by Lim-controlled Rowsley. His other interests includes Yanlord, FJ Benjanmin and McLaren.

10) Ong Beng Seng and wife - Net Worth $1.6b/ Diversified

Their biggest asset is the stake in Mulberry, a British fashion company. They also control Hotel Properties, Club 21 and NSL. The wife oversees boutique hotel operator Como Group. Other interests include the Grand Prix and a stake in oil trader Kuo International, run by Peter Fu Chong Cheng, Christina's brother.

11) Raj Kumar & Kishin RK - Net Worth $1.5b/ Real Estate

Their privately held property empire includes Rag's Royal Holdings and Kishin's RB Capital.

12) Zhong Sheng Jian- Net Worth $1.7b/ Real Estate

He is the owner and founder of China property company Yanlord Land Group.

13) Lee Seng Wee - Net Worth $1.35b/ Banking

Sits on board of OCBC after serving as chairman for 8 years until his retirement in 2003.

14) Sam Goi - Net Worth $1.7b/ Frozen food

Sam Goi, also known as the Popiah King, is the world's largest maker of frozen rice wraps used to make spring rolls. He's expanded the portfolio of his privately held Tee Yih Jia Food Manufacturing with acquisitions in stake such as diary product firm Etika International Holdings. He also owns a property arm know as GSH Corporation.

15) Koh Wee Meng - Net Worth $1.4b/ Real Estate

Property tycoon, hotelier Koh is the owner of Fragrance Group. He spun off its hotel arm into Global Premium Hotel, listing the budget hotel chain last April and is now also expanding into commercial real estate. He broke off from family's jewellery business to get into proerty in the 1990s.

16) Lim Oon Kuin - Net Worth $1.5b/ Oil Trading

Lim is the founder of Hin Leong Trading, one of Singapore's largest independent oil traders at the age of 20 in 1963. He owns majority stake in Universal Terminal, Asia's largest oil logistics terminal. he also owns a fleet of 100 tankers via shipping arm Ocean Tankers run by his son, Evan.

17) Tang Wee Kit - Net Worth $970m/ Retail

Son of late Tang Choon Keng, who founded Singapore's oldest department store, C.K Tang. Biggest asset is Tang Plaza on Orchard Roadm home to C.K Tang's flagship store and Marriot Hotel.

18) Lien family - Net Worth $965m/ Banking

Banker Lien Ying Chow left shares in UOB through family's holdings outfit which is headed by his widow, Margaret.

19) Asok Kumar Hiranandani - Net Worth $1b/ Real Estate

Co-founder of Royal Brothers, Asok separated from older sibling Rag in 2011. His assets are now included privately owned Royal Group Holdings which has built a new corporate headquarters and a 135- room Sofitel So Hotel designed by Karl Lagerfeld. He recently bought the 144-room Stamford Double Bay Hotel in Sydney for $58 million and is also expanding into Indonesia. All new projects are overseen by son Bobby, whom is expected to succeed him.

20) Tan Boy Tee - Net Worth $855m/ Shipping

Gain his fortune from $700 million sale of Labroy Marine in 2008, the tug and barge company he founded in 1978. He currently owns small stakes in a few Singapore-listed companies. In June he sold his 15% share of property firm Brothers Holdings for $10 million.

21) Chang Yun Chung - Net Worth $815m/ Shipping

Founder of Pacific International Lines, which owns a fleet of 153 vessels. Subsidiaries include Hong Kong-listed Singamas Container Holdings, which he also chairs.

22) Oei Hong Leong - Net Worth $765m/ Investments

Son of Indonesian billionaire Eka Tjipta Widjaja, Oei is a veteran investor. His investment acute was again on displayed as he recently bought and quickly sold a 21% stake in plastics and metals trader Intraco at a $1 million profit. His holdings include IPC, a Singapore-listed firm that buys and redevelops distressed properties in Japan.

23) Bhupendra Kumar Modi - Net Worth $755m/ Telecom

Owns Spice Group, which has interests in mobile devices, entertainment and financial services, is betting on the mobile Internet. He also owns more than two-thirds of flagship company S Mobility, real estate in Singapore, India.

24) Ho family - Net Worth $725m/ Banking

The late Ho Sim Guan is a former UOB director. The Ho family continues to hold big stake in UOB and also Haw Par.

25) Choo Chong Ngen - Net Worth $690m/ Real Estate

Owner of budget hotel chain, Hotel 81. Owns minor stake in competitor Koh Wee Meng's Fragrance Group.

26) Michael Kum - Net Worth $670m/ Hotel

Kum made his first fortune in offshore vessels, then turned to hotels after selling part stake in his Australian-listed Miclyn Express Offshore during its 2007 IPO. Since 2009, he has been acquiring 11 hotels in Australia, Japan, New Zealand and Singapore.

27) John Chuang - Net Worth $605m/ Cocoa

Owner of Petra Foods, which sells cocoa ingredients to Nestlé, Cadbury and Mars.. Top, Delphi, Silver Queen are some of its own retail brands.

28) Peter Fu Chong Cheng - Net Worth $540m/ Diversified

He and siblings inherited Kuo International, one of Singapore's largest independent oil traders, from father, Peter Fu Yun Siak. Other interests include stakes in brother-in-law Ong Beng Seng's Hotel Properties and NSL.

29) Loo Choon Yong - Net Worth $535m/ Healthcare

Owner of Raffles Medical Group, one of country's largest health care providers, is benefiting from rising influx of medical tourists. It has 74 clinics in Singapore and 4 in Hong Kong and Shanghai. It has plans to expand Raffles Hospital and open a new medical center by next year.

30) Henry Ng - Net Worth $510m/ Diversified

Owns two-thirds of Pan-United, Singapore's biggest cement supplier, together with 3 siblings. The company was founded by their father, Ng Kar Cheong. The bulk of their fortune derives from their sale of shipbuilding business, Pan-United Marine, to Dubai Drydocks World in 2007.

31) Chua Thian Poh - Net Worth $470m/ Real Estate

Owner of Ho Bee Investment.

32) Ow Chio Kiat - Net Worth $445m/ Hotel

Owner of hotels and property outfit, Stamford Land. It has expanded into building apartments in Australia and New Zealand.

33) Ron Sim - Net Worth $435m/ Retail

Founder of OSIM International. He also owns US Retailer Brookstone GNC in South Asia and Richlife in China.

34) Cheng Wai Keung- Net Worth $355m/ Real Estate

Owner of Wing Tai Holdings, he was also the former Chairman of NOL. Currently sits on board of Temasek Holdings.

35) Lim Hock Chee - Net Worth $345m/ Retail

Owner of Sheng Siong supermarket chain and Singapore's third largest food retailer. 

36) Yao Hsiao Tung - Net Worth $325m/ Manufacturing

Founder of Hi-P International, who is Singapore largest electronics component makers, whose clients include Apple, Amazon and Nike.

37) Satinder Garcha - Net Worth $315m/ Real Estate

Made first fortune in Silicon Valley in 2000. Has since moved to Singapore and started Elevation Development, a property firm specializing in building luxury villas which he rents out to rich expat.

38) John Lim - Net Worth $310m/ Real Estate

Runs ARA Asset Management that manages property funds in China, Hong Kong, Singapore and Malaysia. Assets include Suntec City Singapore and Beijing's Oriental Plaza Beijing.

39) Olivia Lum - Net Worth $310m/ Water Treatment

Founder of Hyflux.

40) Ho Kwon Ping - Net Worth $280m/ Hotels

Founder of Banyan Tree Hotels & Resorts.

Company Coverage - Gallant Venture Limited

From Company's Prospectus

1. Business Description

Investment holding company focusing on regional growth opportunities. Gallant Venture Limited (Gallant) is an investment holding company focusing on regional growth opportunities.

Operate mainly in Batam & Bintan. Its existing investments are mainly in Batam and Bintan in the Riau Archipelago, Indonesia, under 4 major lines of business:

Utilities

Industrial parks

Resort Operations

Property Development

From Company's Prospectus

Salim Group is the biggest shareholder of the company. Key shareholders of the company include Salim Group and Sembcorp.

From Company's Presentation

2. Business Operations

Utilities

- Private provider of utilities services to Batamindo Industrial Park and Bintan Industrial Estate, as well as to Bintan Resort.

- Revenue is derived from tariffs for the supply of electricity, telecommunications, wate and waste management services to the industrial parks and resorts

Industrial Parks

- Ownership, management and maintenance of industrial park properties in Batam & Bintan; activities include development of the industrial parks, sale or lease of land in the parks and rental of ready-built factories

- Revenue is derived from rental, service and maintenance charges

Resort Operations

- Provides integrated support services to the 4 resorts and 7 hotel properties in Bintan Resorts, an integrated resort development and international tourist destination that spans over 3,000 ha of land  

- Revenue is derived from ferry operations, property rental, travel agency, service and conservancy charges, and other support services

Property Development

- Properties owned totalled about 18,2000 ha valued at approx S$541m  

- Integrated master planning for industrial park and resort development in Bintan Industrial Estate and Bintan Resorts

3. Financial Highlights

(a)Book value

Let’s look at the tangible book value per share of the company. Below is the Balance sheet as of 1Q13.

Adjusting for the intangibles and applying a 10% margin of safety discount to it, we can an adjusted BVPS of 46.33 cents. (BVPS 52.24 cents)

According base on the adjusted BVPS and the share price of 32.5 cent, it is about 0.7, signalling a 30% discount value.

(b) PE perspective

In FY2012 and FY11, it achieved an EPS of 0.46 cent and 0.34 cent. Therefore on a PE multiple perspectives, you are paying approximately 70X PE. This kind of high PE multiplication, although expensive, is irrelevant as this company invest in emerging market and should be seem like a more growth company.

(c) NPV concept          

Using a very quick and simple NPV calculation and following assumptions:

*Cash Flow = EBITDA = S$103m

*Cost of Capital = 10%

*Growth of next 4 year = 4%

*Terminal Growth of zero percentage at Year 4

I get a NPV figure of approximately 33.85 cents.

4. Investment Highlights

(a) Bintan and Batam Exposure

Well, Gallant is one of the Land king in Bintan and holds land in Batam as well. Thus if investor are bullish on the property and tourism for this 2 areas, you should like Gallant as it has the potential to become the next Iskandar!!

(a) Stable Business from its utilities and Industrial parks business amid slow down

Gallant owns a portfolio of stable utilities and industrial parks. According to the Company 2013 presentation, the management guided a recurrent EBITDA of S$60-100million per annum for its utilities and industrial park businesses.

(c) Acquisition of automotive retailer, PT Indomobil Sukses Internasional (IMAS)

In December 2012, Gallant enters into acquisition of IMAS for $809.3m valuing the auto retailer at $1.55billion. Personally, I like this acquisition as I think the domestic economy of Indonesia is doing quite okay and this acquisition provides Gallant an exposure into the mid & high luxury market of the Indonesia consumer market.

5. Investment Weakness

(a) Property and resort business fails to deliver

Despite a lot of excitement generated on Bintan as the next tourism spot, it has largely failed to deliver. If anyone of you that have gone to Bintan before, you should know that the planning are rather haphazard and the only thing you can do there is really relax!!

Despite a lot of effort to remake it as a spa and golfing place, it has since failed to deliver.

This is very much the same for its property business. However, the same weakness might be the exact investment strength for some other investor. (please see above)

(b) Inherent cyclical risk

6. Conclusion

Stock market has been quite merciless to the investors in recent week. However, I have been re-reading my holy investment bible aka The Intelligent Investor, and Master Benjamin Graham did say that a falling market makes it a safer place to invest in. (as price is getting cheaper)

Looking at Gallant, I do think that the company seems to be undervalued and the recent spike (which I still haven't figured out why) might be due to people buying it on the cheap.

Base on my various arguments, i think that you can buy on "hope" and there is definitely a lot of unlocked potential within the business. 

However, its tough to value them although on various account, it looks cheap. Thus I will start accumulating this counter if the share price falls below S$0.30. If not, there is still a lot of decent company that you can invest in.

But this is definitely one of the names on my watchlist.

New IPO Coverage - Tee Land Limited

From Company's Prospectus  

A. Business Description

Spin off from Tee International; a residential property developer. Tee Land is a corporate spin off from Tee International (listed on SGX, last traded at S$0.44). Tee Land  is a primarily residential property developer in Singapore. Their property development projects are pre-dominantly freehold in tenure and are targeted at middle-to-high income consumers who value exclusivity in good locations.

Expanding into commercial & industrial segment and looks to overseas expansion. Whilst they continue to specialize in residential property developments, they are expanding into commercial and industrial property development projects. Leveraging on our experience and expertise in property development in Singapore, we have also extended our geographical reach to Malaysia, Thailand and Vietnam.

B, Usage of Proceed

From Company's Prospectus  

C. Financial Highlights

Bumpy revenue similar to industry peers. Like any smaller sized property developer, Tee Land exhibited bumpy financial records, which is highly dependent on its projects launches. Thus in year whereby it launches more projects, it will generally generate a higher revenue.  

From Company's Prospectus  

NAV of 31.49 cent. The pro forma NAV per share is S$0.3149, this compares to the public IPO price of S$0.54. Thus as a retail investors, you are paying a Price to Book (P/B) of 1.71X, which I don't feel particularly excited as I know a lot of property developer are actually trading below there NAV.

Market capitalization of S$241.3m. Post the IPO, Tee Land will be a S$241.3m market cap company.

From Company's Prospectus  

Capital value of S$394.5m. The capital value of its project is at S$394.5m and I think most of its projects are pretty interesting, due to the market segment they target (mid-to high segment). As such, they can command a high premium for those projects. Below provide the project details:

From Company's Prospectus  

Negative operating cash flow due to land acquisitions. Tee Land has been exhibiting negative cash flow for the past 2 years due to its land acquisitions activities as it seek to undergo expansion. This might worries investors but to me, I think it is good as we can see that the company is acquiring land actively to grow its business. Equity investors love GROWTH!!

From Company's Prospectus  

Just to help investors understand a typical the cash collection schedule for a Singapore property developer,  you can refer to the picture below:

From Company's Prospectus  

Dividend policy set at no less than 50% of net income. Subject to a list of conditions set out in the prospectus, the Board intent to declare no less than 50% of the FY13 results. But do note that, event with subject high dividend payout, there is no guaranteed absolute amount you will get as like mentioned earlier, the earning is just to bumpy.

In addition, below set out its competitors as per outlined by its prospectus:

From Company's Prospectus  

D. Investment Highlights

Premium property developer with an established track record. As mentioned about, Tee Land's property projects are pre-dominantly free-hold in tenure and are targeted at mid-to high income segment who value exclusivity in good locations. Thus they are able to charge a premium against it. They have also established decent track record since the mid 2000s.

Expansion via JV, overseas and cross segments. Tee Land enters into JV to maintained relationships with an extensive and established network of partners. This allows them to leverage on the partners' experience, business connections, expertise and resources to capitalize on growth opportunity. In addition, it targets to expand its geographical reach and cross segments (commercial & industrial) also provides growth avenues.

Strong cornerstone investors. Prior to its listing, TEE Land had attracted notable investors including Koh Wee Meng, CEO of Fragrance Group, and 2G Capital co-founder Tommie Goh.

E. Investment Risk

Inherent industry risk. Property sector is always a cyclical industry. Thus one should invest them when they are cheap during the crisis period like 97 AFC (Asia Financial Crisis), early 2000 SARS or even during the 08 GFC (Great Financial Crisis).

However in current environment whereby the property prices is trading at a all time high; regulatory uncertainty and the potential fear of increasing interest rate, I'm definitely not a investor of the property developer as unless there is some compelling story to them. 

F. Technical Analysis - Looks Favourable

Small public issue size. The public issue is quite small vs the original holding on by Tee International and cornerstones. In addition, the reserve share vs placement share vs public offer is quite skewed. The small supply of issuance size might create a strong retail demand, giving a favourable effect to it.

Home Basis effect. This is a local company that people is familiar with and there might be some home basis effect. People might like and know this company and will buy it.

Stabilizing manager effect. Last but not least, this is a factor that I think is important. With a stabilizing manager effect, this stock should not perform too lousy as the stabilizing manager will come in to interfere if the stock 

G. Conclusion

Yet another pump and dump. After the solid performance of Soilbuild, I guess investors are definitely greedy hoping that it will signal a start of a solid IPO market. I do agree that the technical factor of the stocks looks exciting. HOWEVER, if you know me, I believe in investing and not speculating. As a long term business, I'm not excited over this company as:

(1) Dislike the industry, think we are trading at the top of the cycle

(2) Don't like the fact that the people are paying S$0.25 while I'm paying S$0.54 (see below)

(3) Tee International the parent is trading at S$0.44 vs this subsidiary company that is IPO-ing at S$0.54

(4) Not much compelling upside story (unless they can get very good traction on its domestic market and all of its expansion initiatives)

From Company's Prospectus  

Thus you can buy and hope the stock do well on the first day but I will not be a long term buyer for it.

E. Timetable

From Company's Prospectus