Gallant

Gallant: DBS re-initiates Buy with TP$0.88 and cites potential Bintan land sales as catalyst. Co owns 18k ha of undeveloped land on Bintan at historical cost of $0.78-$10.95psm and booked $33m in sales with over 70% margins. The dev of Lagoi Bay as an integrated resort is likely to spur further sales…

Co’s other businesses of utilities and industrial parks offer recurrent EBITDA of $70m-$85m per annum and generates stable cashflows. Other opportunistic ventures with a cheaply bought 29.4% stake in PT Silo, an iron ore mining business, and 48% share in Shanghai property could offer substantial gains. Co is valued at SOTP and is projected to sell its plots at $120psm aft dev costs of $35psm.