p/b 0.40, avg leverage ratio 43%, , WALE 3.3 years, cost of debt 3.5%
cash USD 20m, interest coverage ratio 1.5x
occupancy has been recovering even during the pandemic, so with the Pfizer vaccine, things should be better. as we are going to see light at the end of the tunnel.
US and UK will be getting the vaccine first.
a premium of portfolio 41 hotels like Marriot, Hyatt, etc are opened, The brand equity of Marriot and Hyatt already sell itself.
a strong and competent sponsor
hist div. was USD0.025. If we assume that the worst-case scenario n no dividend for the 2nd half, the yield is at 7%.
if we assume the best-case scenario when things start to turn to norm, u will be getting at least 10% at this price -plus the huge capital upside.
further, with the unprecedented large QE, there is going to be a big inflation in equity and property prices.
when people have been restricted in movement/lockdown and suddenly u released them, they will be flocking like ducks out of the cage.
I always like this mantra when investing, ''Get paid while u wait''
Remember, this crisis is once in a decade event, hopefully.
Union Gas diversifies into piped and liquefied natural gas;
secures contracts with an annual worth of S$2 million
• This is the Group’s fourth fuel product after liquefied petroleum gas, diesel and
compressed natural gas
• Enters into agreements with four customers to supply piped natural gas and signs letter of intent with a potential fifth customer to begin technical and feasibility studies for supply of liquefied natural gas
• Intends to leverage its well-recognised brand to win more contracts
Executive Director and Chief Executive Officer, Mr Teo Hark Piang（张学彬）, said: “Although we had our licence and were ready to supply and retail PNG and LNG since 2017, it was also in that year that we were publicly listed. At that time, we made a decision to focus on growing and expanding our existing business to gain momentum to be on the right trajectory of growth. As our existing business has since gained sufficient traction, we felt that now is the right time to revisit our plans to offer PNG
and LNG and promulgate this gas as a viable, sustainable, and environmentally friendly alternative fuel.
“We are encouraged that this new business is off to a good start with four customers and potentially a fifth coming onboard soon. Union Gas is a well-recognised and trusted homegrown brand known for quality products and reliable services and we intend to leverage this track record and our industry know-how to grow this new segment of our business.”
SGXnet
Note: I am not looking at the 2m contract. In my opinion, I am seeing an opening of a new chapter.
There are 2 companies that have fallen from the grace.
They have since out -of -the-radar. Over the years, they have been paring their losses and shoring up the balance sheets.
One company has 41 mil cash with a total liabilities at 34m, the other with 15m cash and total liabilities of 14m. One has total assets of 122m and the other has 192m.
The first one has already started paying dividends of USD 1.5 cts.
Why buy? Lately, I read that the freight charges have skyrocketed. Also, there was a recently signed CPTPP within the Asian countries.
Further, the president-elect Biden might have more friendly policies with China and join the TPP.
This may be a speculative buy but looking at the price, the margin of safety is huge and the upside can be rewarding.
