PEC

PEC: Grp recently announced that it will hold an EGM on 10 Feb12 for a proposed share purchase mandate where the grp will be authorized to purchase up to 10% of the total
issued shares (excluding treasury shares). The proposed mandate will also improve the group’s return by reducing its excess cash.

OCBC believe shareholders would generally vote in favour of the resolution as it would provide direct support to PEC’s share price, which appears to be steeply undervalued. Last traded price is $0.765 versus NAV of $0.80 and net cash of $0.61 per share. House maintains BUY with unchanged fair value estimate of $0.92.