Hock Lian Seng: Share price hit a new all-time high today at $0.395. Since Market Insight added the stock to its value portfolio at the start of the year, the stock has reaped a handsome 30% return.
The stock’s inclusion into Market Insight’s value portfolio was premised on the group’s burgeoning net cash hoard of $88m (44% market cap) and an expected $60-70m coming in from the impending TOP of two industrial properties. This gives scope for a potential special dividend payout, on top of its 6% forward yield.
Separately, a local broker recently maintained its Buy call on the counter with a TP of $0.505, labelling the stock as a “convincing gem”, highlighting the group’s strong current order book of $345m, which provides revenue visibility over the next three years.
The house is expecting Hock Lian Seng to register a strong set of FY14 results, led by reconigtion gains from a completed industrial property development project.
At the current price, Hock Lian Seng trades at 5.9x trailing ex-cash P/E and 1.4x P/B.
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