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Already very long maxinium is $0.21, is not easy to trade counter
UOB Kay Hian report this morning
Fu Yu Corp (FUYU SP)
Massive Hidden Value In Properties Recognised At Cost
FUYU&rsquo s conservative accounting policy in recognising its properties at book
value has undervalued the assets by S$50m, or 33% of its market cap, based on
its 2018 annual report. Any disposal to unlock value could further rerate the
stock. The hidden value of these properties, its cheap valuation, diversified
operations and low utilisation rate make FUYU an attractive takeover target. FUYU
offers dividend yield of 8.5% for 2019, and net cash forms 53% of its market cap.
Maintain BUY and TP of S$0.285.
WHAT&rsquo S NEW
&bull Disclosure of properties&rsquo market value in 2018 annual report indicates massive
hidden value. In its latest 2018 annual report, Fu Yu Corp (FUYU) revealed that the
fair value of its leasehold properties amounts to S$65.7m, with carrying amount of
S$15.6m. This S$50m discrepancy indicates FUYU&rsquo s book value is undervalued by 7
S cts/share or 33% of its market cap.
&bull Deeper research on FUYU&rsquo s properties shows consistent data. To uncover the
up-to-date value of FUYU&rsquo s properties, we pegged the value of its land to the latest
transaction price. As a result, we derived a value of S$62.5m, slightly below the fair
value estimated by FUYU in its 2018 annual report that amounted to S$65.7m. In
addition, we note that FUYU&rsquo s most valuable properties are located in Singapore,
followed by Malaysia and China. To recap, all nine of FUYU&rsquo s properties including an
investment property in Malaysia, are being recognised on its balance sheet at cost
less accumulated depreciation.
&bull Potential disposal of properties could unlock value, and hidden value makes
FUYU an attractive takeover target. We believe any potential disposal of properties
to further streamline its operations could unlock the hidden value and reduce
operational costs. Furthermore, the hidden value of its assets, on top of its cheap
valuation, diversified operations and low utilisation rate, makes FUYU an attractive
takeover target.
&bull Recent takeover offer of PCI at attractive premium could lead to re-rating. On 4
Jan 19, PCI announced it had received a takeover offer from Platinum at S$1.33 per
share, a premium of 60.1% over the volume weighted average price of the shares for
the 12-month period up to 17 Sep 18. The valuation metrics of 5.5x TTM EV/EBITDA
based on the offer price is 83% higher than FUYU&rsquo s 3.0x 2019F EV/EBITDA.
Fu Yu Corp (FUYU SP)
Massive Hidden Value In Properties Recognised At Cost
FUYU&rsquo s conservative accounting policy in recognising its properties at book
value has undervalued the assets by S$50m, or 33% of its market cap, based on
its 2018 annual report. Any disposal to unlock value could further rerate the
stock. The hidden value of these properties, its cheap valuation, diversified
operations and low utilisation rate make FUYU an attractive takeover target. FUYU
offers dividend yield of 8.5% for 2019, and net cash forms 53% of its market cap.
Maintain BUY and TP of S$0.285.
WHAT&rsquo S NEW
&bull Disclosure of properties&rsquo market value in 2018 annual report indicates massive
hidden value. In its latest 2018 annual report, Fu Yu Corp (FUYU) revealed that the
fair value of its leasehold properties amounts to S$65.7m, with carrying amount of
S$15.6m. This S$50m discrepancy indicates FUYU&rsquo s book value is undervalued by 7
S cts/share or 33% of its market cap.
&bull Deeper research on FUYU&rsquo s properties shows consistent data. To uncover the
up-to-date value of FUYU&rsquo s properties, we pegged the value of its land to the latest
transaction price. As a result, we derived a value of S$62.5m, slightly below the fair
value estimated by FUYU in its 2018 annual report that amounted to S$65.7m. In
addition, we note that FUYU&rsquo s most valuable properties are located in Singapore,
followed by Malaysia and China. To recap, all nine of FUYU&rsquo s properties including an
investment property in Malaysia, are being recognised on its balance sheet at cost
less accumulated depreciation.
&bull Potential disposal of properties could unlock value, and hidden value makes
FUYU an attractive takeover target. We believe any potential disposal of properties
to further streamline its operations could unlock the hidden value and reduce
operational costs. Furthermore, the hidden value of its assets, on top of its cheap
valuation, diversified operations and low utilisation rate, makes FUYU an attractive
takeover target.
&bull Recent takeover offer of PCI at attractive premium could lead to re-rating. On 4
Jan 19, PCI announced it had received a takeover offer from Platinum at S$1.33 per
share, a premium of 60.1% over the volume weighted average price of the shares for
the 12-month period up to 17 Sep 18. The valuation metrics of 5.5x TTM EV/EBITDA
based on the offer price is 83% higher than FUYU&rsquo s 3.0x 2019F EV/EBITDA.
i think got chance breakout today 21cents
Spike of volume but price never move much....... Seen like hidden player coming...... Maybe anticipate positive trade talk news to pump..... Jus speculation.
Today high vol hor
$0.25 on the way
fully value for the money. all tech stocks flying are this being overlooked?
Results out already.. tomorrow will fly..
slowly and surely
Good question .....MFS last time also take years ...UOBKH said likely but last time they said Tuan Sing likely privatised too !!...
Brianfoo ( Date: 05-Dec-2018 12:14) Posted:
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Cash rich company. Highly recommended.
Price going up again.....
Today pay 0.003 divident, halt soon. No reason to stay in SGX anymore.
Brianfoo ( Date: 05-Dec-2018 14:11) Posted:
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Or maybe 5 years later too lol
Maybe tonight lolol
Brianfoo ( Date: 05-Dec-2018 14:11) Posted:
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Anyone please can advise?
Hihi may i know when fu yu will be privatialised please?
load up!!
Lets see if it can sail pass 20c.
Look extremely cheap below 20c with such good matrix.
tonylim ( Date: 28-Nov-2018 10:01) Posted:
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