I would say that in terms of discount to RNAV alone, yes, Superbowl is more undervalued. In fact, I think its RNAV is probably $1.10-1.20, depending on one's estimates of its ZP stake and its big portfolio of shop spaces at Parklane, Orchard Tower, Orchard Plaza, Balestier Point and Bt Timah Plaza. According to figures in the DMG report, Superbowl's share of the GDV is indeed about 94.5ct per share.
However, do note that the ZP joint venture may be drawing more bank loans this half-year as more money is pumped into furnishing the hotel rooms, construction costs, etc. Hence the co's debt will increase. The GDV figure must be viewed in conjunction with the increased debt taken for the project.
Also, apart from RNAV, it's good to look at cash flow, earnings, and future projects. In these areas Hiap Hoe looks more interesting as it has lots of profits and cash flow coming from its highly lucrative Skyline 360 and Waterscape; it may also redevelop its industrial site near to the new Mattar MRT.
Superbowl's RNAV, however, is mainly in long term assets. Nevertheless, DMG figures that ZP can yield about 5% based on the GDV, which translates to about $31m (although I am not sure if this is gross or net of tax) per year, meaning a consistent $15.5m profit for Superbowl annually. This works out to an EPS of about 4.75cts per year, assuming the $31m is post-tax.
In summary: Share price RNAV range
Hiap Hoe 58ct $1.35-1.50
Superbowl 37ct $1.10-$1.20
Thank you Sumer, you are generous in your sharing!
Hiap Hoe has done very well again today, and it's time to consolidate. Maybe next week, it will trade sideways around 60.5 cents before it turns up again with the opening of the hotel in Zhongshan Park.
considering its RNAV of S$1.20 or so, Hiap Hoe is deeply undervalued still at 60.5 cents. I am confident of it in the longer-run (ie, 3 months to 6 months). Its value should be realised over time.... I just hope it won't tumble again as it did after it hit $0.685 on 28 March this year. It would be a shame! Just to share a picture of Hiap Hoe project in Cavenagh Road called Waterscape. I keep seeing the hoarding for this project when travelling on the CTE near the Cairnhill area:
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