Far East Grp

Far East Grp: Sias Research initiates coverage with an ‘Increase Exposure’ Call and $0.38 TP. House note that the company 1) is one of the largest distributors of refrigeration systems and products in Southeast Asia and carries a wide range of branded cooling system components, 2) has an innovative in-house “Eden” brand of products which are known for its energy efficiency and 3) exciting plans to widen its distribution channels and manufacturing facilities. The company’s head office in Lavender Street has only a book value of $4.4m but has a market value of about $18.8m, which is about 131% of its market capitalization. Far East trades at FY13F 7.1X P/E and P/B of 0.65X (the head office value remains at book).