Good piece by Lim & Tan Securities but..... am puzzled why Hold rating?
The stock is at a new recent high of $6.52, and could be attributed to renewed buying of shares by Chairman Wee Cho Yaw.
ï¬ Wee Investments picked up 533,000 shares last week at $6.41 average, ex-dividend of 6 cents.
ï¬ The family last spent $10 mln on 1.666 mln shares, largely in March â11. Average cost then was $6.05 cum-dividend of 14 cents a share.
ï¬ Latest NAV of Haw Par is $10.39 a share, ie stock trading at 37% discount.
ï¬ Given the latest purchases were made ex-dividend, unlike cum-d in Mar-May last year, one could surmise it is Haw Parâs NAV backing that prompts the Wees to pick up shares every now and then.
ï¬ The Wee family owns 33.49% of Haw Par.
ï¬ At $6.50, yield is 3.1%.
ï¬ We believe HOLD is appropriate.
