GuocoLand: Under the Opinions' section, BT published an article today on the counter, citing that GuocoLand is an attractive candidate for privatisation.
- Stated total assets and net assets of $8.8b and $3.7b, respectively, is believed to hugely undervalue the group's Tanjong Pagar Centre integrated complex.
- Even at the low-ball market valuation of $2,500 psf, this project should be worth ~$4.2 billion, compared to the current market cap of $2b.
- This excludes an upward revaluation for its assets in Malaysia and China, which analysts believe could be almost 40% higher than the company's stated book value.
- Fair value derived at ~$4, 55% discount to $1.80.
Other counters primed for privatisation include Wing Tai, Wheelock and Banyan Tree.