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3 Things Investors Should Know About Far East Orchard Ltd Now

Far East Orchard Ltd (SGX: O10) is a listed company that falls under the umbrella of the Far East Organization, Singapore’s largest private property developer.

At Far East Orchard’s current share price, it is just 10% away from a 52-week low of S$1.36. Because of that, the company may be of interest to bargain hunters. In any case, here are three things about the company’s business that investors may want to know:

1. A breakdown of its revenue

Far East Orchard generates its income through its three different business segments, namely Property Development, Hospitality, and Property Investment.

Here’s a chart showing the revenue contribution from each segment from 2011 to 2015:

far-east-orchard-revenue-chart
Source: Far East Orchard 2015 annual report

In 2015, the biggest slice came from Hospitality, followed by Property Development.

2. Five-year financial summary:

The table below gives a quick overview of the revenue and profit performance of Far East Orchard:

far-east-orchard-table
Source: Far East Orchard 2015 annual report

There’s an interesting development there: Whereas revenue from Far East had quadrupled from 2011 to 2015, its profit had shrunk by 77%.

3. The presence of a majority shareholder:

As of 1 March 2016, 60.42% of Far East Orchard’s shares are held by the Far East Organisation. This means that Far East Organisation can dictate the overall strategic direction of Far East Orchard.

Minority investors may want to (a) understand the philosophy and thinking of Far East Organisation, and (b) be comfortable with Far East Organisation being at the helm.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.