Hafary

Hafary: Possible positive sentiment after the grp announced that it has received approval-in principle from SGX for the transfer of listing from Catalist to the SGX Mainboard. The transfer is however subject to the approval of shareholders of the Co at an EGM to be held on 12 Jun13. We note that a successful listing would see the co. being able to reach out to a wider investor base following the Proposed Transfer. Recall, Hafary is the largest provider of tiles in SG and last mth, UOB Kay Hian had initiated Coverage on the counter with a Buy Call and $0.66 TP, noting that strong construction demand is likely to boost future earnings and the grp's valuation is backed by a portfolio of industrial buildings held at low cost on balance sheet. Any plans to unlock hidden value of the property portfolio may be an upside catalyst for the stock.