Gallant Venture (GALV SP, $0.255, BUY, TP $0.75) – New coverage! With Bintan land being transacted at 36x the cost of its landbank, Gallant is grossly undervalued. By our estimates, the stock trades at half its book value. The rapid development of its landbank belies the perception of no-progress while visitor arrivals to Bintan are expected to have risen threefold since 1996. Our target price includes Gallant’s investment in a prime Shanghai property for which we project 180% upside to cost
"Action and Recomendation":
Gallant currently trades at half its understated book value, a level which ignores the growth potential of its Lagoi Bay development as well as other investments.
We recommend investors to BUY Gallant and get $0.18/share for free. The latter will come from its profitable ventures into an iron ore mining firm and a prime real estate project in Shanghai’s Lao Xi Men, which, at current market prices, could offer 180% upside.
Last edit: 13 years 8 months ago by DBT. Reason: amend
Below good analysis by a CNA forumer called blissquek:
Yes...this is a long term stock....
Currently move if supported by good vol is a good sign...
My view why this stock shd move up... 2 main reasons
1. The two casino is surely a catalyst...with hugh profits rolling it for the two operators... Jkt may do an about-turn on its gambling policy....
They may mimic singapore in levying high charges restricting locals from patronising the casino.
...Landmark bhd is a major player in resort development.. and has an interest in Gallant. And they have been talking to secure central govt approval for the project. Genting is the biggest shareholder of Landmark Bhd.
2. The Lagoi Bay residential development is attracting serious buyers who wants houses similar to Sentosa cove. With Sentosa prices well above $2000 psf, Lagoi Bay units is going for a fraction of Sentosa cove.
High property prices in Sentosa Singapore is having a spill-over effect
The last time round when Gallant was trading at $1.50 , many were screaming for $4 , based on the value of the land holdings.
This time round, the scenario is quite different...Cos the two Singapore IR is in place and the hype and spill-over effect is more evident.
Good property play , unlike singapore property investments which are too high already. Land in places like Bintan have lots of room to appreciator, so this is a good buy-&-hold stock. Q3 net profit was $7.5 m from land sales. Q4....??? Note that Gallant has said there will be no land sale in Q4. Kim Eng Research forecasting $2.5 mnet profit for Q4. Total net profit for 2010 expected to be $9.3 million
Gallant Venture shows off Bintan. Bintan is less than an hour’s ferry ride away from Singapore. Exciting developments are underway on the island whose white sandy beaches offer a retreat close to Singapore. Already known for its dining, spas, water sports and golf, visitors can expect a vibrant township in the near term that will rejuvenate Bintan as a tourist destination.
Our video gives you a sneak peek, and what it means for Gallant.
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