Tuan Sing has long been undervalued vis-Ã -vis its RNAV. There has been no market coverage --- things are changing. Kim Eng initiated coverage yesterday and the stock has flown up! Kim Engâs target price of $0.63/share looks good â lots of upside from even the latest price of 38 cents. The immediate catalyst for each of its underlying businesses is there. Redevelopment could unlock the value of the prime commercial buildings it owns in the CBD and the two five star hotels in Australia. It has the potential to turn coal to gold with new acquisitions for its coal trading business held through subsidiary SP Corp. TSH is poised for a major re-rating â so says the analyst at KE.
The glue came off --- Tuan Sing is now 37.5 cents!
Kim Eng Research is, however, supporting it:
The upcoming launch of Mont Timah and the planned rollout of the 300-unit Seletar project in 4Q11 are near-term earnings drivers. The potential redevelopment of Robinson Tower and International Factors Building remains the strongest catalyst for a stock re-rating. Maintain BUY with a target price of $0.63, pegged at a 15% discount to its RNAV of $0.74.
40+ became 35 and now 29.5 cents.
Jeez, cheaper is better, or has the fundamentals of the business of Tuan Sing turned bad? I personally don't think so.
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