Ho Bee (technical)

Ho Bee: UOB Kay Hian note that it has upgraded target price for Ho Bee three times this year and the share price has done extremely well. We see more upside ahead with leasing interest in its upcoming office site, The Metropolis, picking up. On the residential side, interest in the high-end segment is also showing signs of pick-up with recent launches seeing good response from buyers. Its net gearing is low at 0.26x, implying a strong balance sheet, and expect it go down even further. Management has also been actively buying back shares in the last two years, signaling they find the stock of deep value. Ho Bee is trading at a very attractive P/B of 0.6x, vs its long-term mean of 0.9x, implying a potential 50% price upside. Maintain BUY. Our target price is $1.86, which is at a 30% discount to RNAV/share. House also place Ho Bee on a technical BUY. The stock could rebound towards $1.70 should it be well supported at $1.40. Stops could be placed at S$1.38. At the moment, the stock appears to be consolidating. Technical target of $1.50 on 4 Sep 12 has been achieved.