LKT has just crossed $0.90! - last done at $0.91. Very nice!
Share price wise, it is nice to note that over the years LKT has beaten even property bigwig like CapitaLand hands down.....
http://finance.yahoo.com/echarts?s=L25.S...=undefined;
LKT's long-term shareholders should be very happy!
re-rating in place for LKT!
http://nextinsight.net/index.php/story-a...tion-level-
SK-DMG highlights delisting potential of Lee Kim Tah
Analyst: Goh Han Peng
Lee Kim Tah stock price has been creeping up. Chart: Bloomberg
A recent spate of privatizations in the property space highlights the latent value in commercial real estate landlords.
Pan Pacific Hotels Group was the subject of a privatization move by UOL Group in May at a 9% premium to its last traded price.
This was followed by Guthrie GTS, a diversified company with real estate assets across the retail, residential and commercial sectors, which received a delisting offer from its major shareholders at a 21% premium to the last traded price.
We think the eventual end game for Lee Kim Tah, which has evolved from its roots as a construction company into a property developer-cum-landlord, is a similar privatization offer from the founding Lee family.
After many years of open market purchases, the Lee family today controls over 85% of the company, putting them within a whisker of the 90% shareholding level for delisting.
Privatization angle aside, the stock is undervalued as we believe the value of its 50% stake in Jurong Point and 75% stake in the SIPCOT Information Technology Park township development in Chennai, is not adequately reflected in its books.
The stock trades at 34% to our re-appraised net asset value of S$1.28, and we have a TP of $1.02 based on a 20% discount to RNAV. BUY for the 22% upside potential.
today's LKT movement is broker driven. To the family, they will just sit back and relax and wait for pullback before they resume to collect slowly.
Personally, I do not think that the buy out will come so soon as the family will just stick to their accumulation strategy like they have done historically.
In the event of a buyout, one should not expect a buyout at near to full RNAV.
Vested
GG
(with a cert)
(03-07-2013, 04:32 PM)brattzz Wrote: [ -> ]re-rating in place for LKT!
http://nextinsight.net/index.php/story-a...tion-level-
SK-DMG highlights delisting potential of Lee Kim Tah
Analyst: Goh Han Peng
Lee Kim Tah stock price has been creeping up. Chart: Bloomberg
A recent spate of privatizations in the property space highlights the latent value in commercial real estate landlords.
Pan Pacific Hotels Group was the subject of a privatization move by UOL Group in May at a 9% premium to its last traded price.
This was followed by Guthrie GTS, a diversified company with real estate assets across the retail, residential and commercial sectors, which received a delisting offer from its major shareholders at a 21% premium to the last traded price.
We think the eventual end game for Lee Kim Tah, which has evolved from its roots as a construction company into a property developer-cum-landlord, is a similar privatization offer from the founding Lee family.
After many years of open market purchases, the Lee family today controls over 85% of the company, putting them within a whisker of the 90% shareholding level for delisting.
Privatization angle aside, the stock is undervalued as we believe the value of its 50% stake in Jurong Point and 75% stake in the SIPCOT Information Technology Park township development in Chennai, is not adequately reflected in its books.
The stock trades at 34% to our re-appraised net asset value of S$1.28, and we have a TP of $1.02 based on a 20% discount to RNAV. BUY for the 22% upside potential.
Today (23Jul13), LKT closed at a new high of $0.995, up another $0.065 or a solid 7%! The final game coming soon?
It is really heartening to note that since 2000, just on share price alone, LKT has outperformed STI (denoted by the red line in the chart) by approx. 350%, and has outperformed CapitaLand (denoted by the green line in the chart) by approx. 375%.....
http://finance.yahoo.com/echarts?s=L25.S...=undefined;
now that SPH REITS is completed... SPH got really DEEP POCKETS liao!!
OFFER to buy JP! GUTHRIE/LKT HUAT HAR!
I'm dreaming!
Now that Guthrie GTS is almost privatized, what are the chances like for the Lee Family to also make a GO soon to attempt to privatize LKT as well? While only the Lees can decide whether to make such a move and when, they must be thinking hard now on this.
FY13 (ended 31Dec13) full-year result just out…..
http://infopub.sgx.com/FileOpen/FY2013Re...eID=275997
31Dec13 NAV/share rose another 9.1% YoY to an all-time high of $1.0448 (vs. 31Dec12: $0.9577). Final dividend has been raised to $0.02/share (vs. $0.015/share for FY12).
fully priced for a takeover
hahaha
FY13 (ended 31Dec13) AR makes interesting reading…..
http://infopub.sgx.com/FileOpen/LKT%20AR...leID=20933
I have noted the following key points -
(1) JP's rental income continues to grow, leading to LKT's group rental from investment properties and related income hitting a new high of $63.09m (+3.25% YoY) - i.e. running at a rate of a solid $5.26m/month. Without any doubt, this forms the bedrock of LKT's recurrent earnings and FCF.
(2) The 75%-owned and huge 421,318 sq.m. (or 4.353m sq. ft.) freehold development land site located at SIPCOT Information Technology Park, Siruseri, Tamilnadu, India, being held under properties under development with an estimated BV of less than $15.0m, should be worth substantially much more. By assuming a price of just $40/psf, this development site would have a potential CMV of some $174.0m, or some $130.0m for LKT's 75% share.
(3) Because of (2) above and other hidden reserve values in LKT's other property and hotel assets, it is quite clear that LKT's latest (as at 31Dec13) NAV/share of $1.0448 (based on NAV of $528.1m, and the 505.44m outstanding issued shares) is likely still under stating the fair market value of the group's underlying assets - by a big margin! The RNAV/share could well be in excess of $1.30/share.
Long-term shareholders and investors should feel heartened that share price wise, LKT has out-performed the STI by some 280%, and also out-performed the blue-chip CapitaLand by a whopping 350%, since Year 2000…..
https://sg.finance.yahoo.com/q/bc?s=L25....I%2C%5ESTI