Time to Wake Up, Pollux Properties!

The past two weeks was a bit more hectic. I guess, with rank, it comes with more responsibility. We can often angle situations positively or negatively. I chose to believe solving problems is a good way to develop my leadership ability.

I’m left with two weeks before being attached out to Sembawang Camp for one entire month. My purpose there will be to take care of the recruits while they’re going through their vocational course. It is going back to stay-in life and I anticipate my 3GB of data isn’t going to be sufficient at all. Nonetheless, it’s going to be fun mingling around with new soldiers, training them in drills, and guiding them for the POC.

I’ve decided to stop procrastination and went to apply for my final theory test at Comfort Driving School today. I’ll probably start my private lessons starting next year.

Daniel Goleman’s Emotional Intelligence is such a well-written book which conveys complex research content into simple and easy-to-digest format. I’ve picked it up and enjoyed it so far.

On the investment front

Guided by CEO Mr Nico Po, and Chairman Mr (Get) Timur Pradopo, Pollux Properties has released their much-improved 1H 2015 results

1. Net Profit Margin of 13.6% resulting in 1H2015 net profit of $2.288mil which far exceeds the FY2014 net profit of $228k.

2. Expects the 2H2015 to be much better since there will be an addition of profit recognition from Mayfair Residences and operation of serviced apartment, Louis Kienne Residences.

3. Full year EPS of 2015 likely to hit $0.85, lowering its P/E ratio to 8.8x.

4. Restructuring is over, Pollux is full swing to recognise profits in the coming quarters on their lucrative profits mostly 100% sold. Pollux has appointed an upcoming property agent powerhouse, SLP Reality / SLP Scotia, to sell their units. With their expertise, I believe there will be sales movement in units.

Left unsold
Pavilion Square (residential) – 2;
Garden Park – 1;
Mayfair Residences – 6

5. Possibly expecting the astute management to look into Indonesia for the next investment property acquisition, due to their in-depth knowledge about Indonesia’s hot property market. Mr Nico Po runs a successful and bigger company called Pollux Indonesia that develops iconic buildings such as Chadstone, Amarsvati, World Capital Tower, Warhol Simpang Lima, Semarang Paragon Mall, Marquis de Lafayette and The Pinnacle.

6. Investment properties are stated at book cost less depreciation / impairment losses. Possibly expecting valuation gains if fair market method is adopted.

7. With deep pockets, Mr Nico Po could extend an interest-free loan to Pollux Properties as he did in the past either via direct loan or loan from joint venture.

All in all, I am quite happy to buy into Pollux Properties when it was in the restructuring process. Now that restructuring is over, and most marketing expenses has been accounted for, the net profit margin should improve over time. I got a good feel when Mr Nico Po expressed his commitment to put Pollux on a firmer foundation for future growth.The share price should move in tandem as the fundamentals gradually improve.

During AGM, he mentioned explicitly he would do corporate actions to improve the liquidity. I guess it should be around the corner. As for the possible integration of Pollux Indonesia and Pollux Singapore, I am not sure about the outcome. But I remain positive because it makes a lot of sense to integrate both sides together.

source:
1. financial results: http://infopub.sgx.com/FileOpen/Pollux_1H2015_result_%20announcement.ashx?App=Announcement&FileID=323494
2. presentation: http://infopub.sgx.com/FileOpen/Pollux_Presentation_1H2015.ashx?App=Announcement&FileID=323496

(edit: I have sold all my shares in Pollux Properties with slight gain as it was an error on my part)