k1 Ventures

k1 Ventures: Veteran OSK-DMG analyst Goh Han Peng reiterates his Buy call, ahead of the full year results expected later this wk. Expects 4QFY13 earnings to be boosted by the sale of its stake in McMoran Exploration (MMR) to Freeport-McMoRan Copper & Gold, which generated cash proceeds of some $37m, and is penciling a final dividend of 1.0-1.5 ct/share. Highlights, following an unsuccessful mgt buyout by major k1 shareholders Keppel Corp, Steven Green and BV Group last year (offer price: $0.135/sh), mgt has committed to managing its existing investments for eventual exits and returning the excess cash back to shareholders. Says to “bet on the jockey”, and believes there is substantial value embedded within key holdings such as KUH, Helm Financial and Guggenheim Capital, to be unlocked. Using a sum-of-parts methodology derives a TP of $0.24 for k1, based on a 20% discount to the SOTP of $0.30/sh.