Wednesday, September 21, 2016

Cogent Holdings

Cogent Holdings (S$0.885): Potential offer for peer could be an upward re-rating catalyst
- Shareholders with 41.3% stake in Poh Tiong Choon Logistics (PTC) are seeking a strategic review of shareholdings
- PTC surged more than 17% early this week to $1.30, implying 1H16 annualised P/E of 18.8x- This could spark a re-rating of Cogent, which was recently granted approval to develop another iconic logistics hub
- If PTC transaction materialises, Cogent could trade between 11-15x P/E, implying fair value of $0.94-$1.28.
- Cogent continues to sit in Market Insight's Value portfolio.

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