GuocoLeisure

GuocoLeisure: UOB Kay Hian has Buy Calls with $1.05 TP (Technical) and $1.19 TP (Fundamentals). Recall house initiated coverage on GLL with a BUY recommendation on the back of an optimistic outlook for UK’s tourism, which should support demand for the company’s 37 hotels there. Despite being one of the UK’s largest hotel operators, GLL continues to trade at a steep discount to book value. House believe an independent valuation report that will be released by end-April should increase its visibility and highlight its undervalued assets. Another potential catalyst could come in the form of its strategy repositioning exercise where expect management to move its focus to Asia.