Hiap Hoe

Hiap Hoe: DMG re-highlights Co’s deep value and maintains Buy with $.61 TP. Note that earnings visibility underpinned by pre-sales. The group has a balance of $360m of progress billings to be recognised over the next 2-3 years, primarily from Skyline 360° and Waterscape at Cavenagh. Meanwhile, construction is progressing ahead of schedule at its Zhongshan Park commercial site along Balestier Road, with the Days hotel and the retail space on track for completion in 1Q13. Deep value emerging once again. Stock price has been on a roller-coaster ride over the past two months on speculation of a breakup of the company due to the family dispute, rising to a high of 69 cents before retracing much of the gains. At current price, deep value is emerging once again with the stock trading at 59% discount to its RNAV of $1.22.