SGX:528

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Second Chance Properties

Executive Summary

Second Chance Properties Ltd, an investment holding company, engages in the retail of gold and jewelries, and ready-made garments in Singapore and Malaysia. More Details


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

How has Second Chance Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 528 is not significantly more volatile than the rest of SG stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 528's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

5.6%

528

-0.5%

SG Specialty Retail

1.8%

SG Market


1 Year Return

-15.6%

528

0.1%

SG Specialty Retail

-13.7%

SG Market

Return vs Industry: 528 underperformed the SG Specialty Retail industry which returned 0.1% over the past year.

Return vs Market: 528 underperformed the SG Market which returned -13.7% over the past year.


Shareholder returns

528IndustryMarket
7 Day5.6%-0.5%1.8%
30 Day22.6%6.6%15.2%
90 Day9.2%9.2%9.9%
1 Year-13.4%-15.6%5.5%0.1%-8.9%-13.7%
3 Year-18.8%-24.0%-0.4%-11.2%-11.5%-22.5%
5 Year-31.2%-43.3%-16.6%-27.3%10.8%-9.6%

Long-Term Price Volatility Vs. Market

How volatile is Second Chance Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Second Chance Properties undervalued compared to its fair value and its price relative to the market?

32.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 528 (SGD0.19) is trading above our estimate of fair value (SGD0.07)

Significantly Below Fair Value: 528 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 528 is poor value based on its PE Ratio (32.3x) compared to the SG Specialty Retail industry average (12.1x).

PE vs Market: 528 is poor value based on its PE Ratio (32.3x) compared to the SG market (14.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 528's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 528 is good value based on its PB Ratio (0.6x) compared to the SG Specialty Retail industry average (0.8x).


Next Steps

Future Growth

How is Second Chance Properties forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

22.4%

Forecasted Retail industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Second Chance Properties has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Second Chance Properties performed over the past 5 years?

-12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 528 has a large one-off loss of SGD5.1M impacting its August 31 2020 financial results.

Growing Profit Margin: 528's current net profit margins (18.6%) are higher than last year (15.5%).


Past Earnings Growth Analysis

Earnings Trend: 528's earnings have declined by 12.3% per year over the past 5 years.

Accelerating Growth: 528's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 528 had negative earnings growth (-6.7%) over the past year, making it difficult to compare to the Specialty Retail industry average (-4.9%).


Return on Equity

High ROE: 528's Return on Equity (1.8%) is considered low.


Next Steps

Financial Health

How is Second Chance Properties's financial position?


Financial Position Analysis

Short Term Liabilities: 528's short term assets (SGD44.6M) exceed its short term liabilities (SGD34.5M).

Long Term Liabilities: 528's short term assets (SGD44.6M) exceed its long term liabilities (SGD47.0K).


Debt to Equity History and Analysis

Debt Level: 528's debt to equity ratio (12.3%) is considered satisfactory.

Reducing Debt: 528's debt to equity ratio has reduced from 34.7% to 12.3% over the past 5 years.

Debt Coverage: 528's debt is not well covered by operating cash flow (17.6%).

Interest Coverage: 528's interest payments on its debt are well covered by EBIT (32.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Second Chance Properties's current dividend yield, its reliability and sustainability?

2.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 528's dividend (2.37%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (2.37%).

High Dividend: 528's dividend (2.37%) is low compared to the top 25% of dividend payers in the SG market (5.14%).


Stability and Growth of Payments

Stable Dividend: 528's dividend payments have been volatile in the past 10 years.

Growing Dividend: 528's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.5%), 528's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

21.2yrs

Average board tenure


CEO

Mohamed Salleh Marican (71 yo)

45.42yrs

Tenure

S$627,163

Compensation

Mohamed Salleh s/o Kadir Mohideen Saibu Maricar is the Founder of Second Chance Properties Ltd. and serves as its Chief Executive Officer since June 1975 and also served as its Executive Chairman since Nov...


CEO Compensation Analysis

Compensation vs Market: Mohamed Salleh's total compensation ($USD468.86K) is about average for companies of similar size in the SG market ($USD388.00K).

Compensation vs Earnings: Mohamed Salleh's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Mohamed Salleh Marican
Founder45.42yrsS$627.16k68.09%
SGD 97.7m
Devnarayanan Pisharody
Executive Director33.67yrsS$207.14k0.58%
SGD 830.5k
Mohamed Hasan Marican
Deputy CEO & Executive Director33.67yrsS$466.34k0.83%
SGD 1.2m
Geetha Padmanabhan
Independent Non-Executive Director8.67yrsS$35.68k0.14%
SGD 197.6k
Lye Heng Tan
Independent Non-Executive Director & Member of Advisory Panel6.92yrsS$33.68k0.0031%
SGD 4.4k
Ahmad Bin Mohamed Magad
Chairman of Advisory Panel & Independent Non-Executive Chairman0.25yrS$41.68k0.066%
SGD 95.0k

21.2yrs

Average Tenure

64.5yo

Average Age

Experienced Board: 528's board of directors are seasoned and experienced ( 21.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Second Chance Properties Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Second Chance Properties Ltd
  • Ticker: 528
  • Exchange: SGX
  • Founded: 1975
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: S$143.502m
  • Shares outstanding: 755.27m
  • Website: https://www.secondchance.com.sg

Location

  • Second Chance Properties Ltd
  • No. 04-22 Tanjong Katong Complex
  • 845 Geylang Road
  • Singapore
  • 400845
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
528SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1997

Biography

Second Chance Properties Ltd, an investment holding company, engages in the retail of gold and jewelries, and ready-made garments in Singapore and Malaysia. It also holds and trades in bonds and equity sec...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/30 11:12
End of Day Share Price2020/11/30 00:00
Earnings2020/08/31
Annual Earnings2020/08/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.