Tan chong international market cap is only about S$600 million (2 billion shares plus @HK$1.95) but they RNAV well exceed HK$4 and with vertually zero debts.
To sweeten the deal, they have sizable landbank in Singapore at dirt cheap price(1960-70 prices) with 2 pieces of freehold land in Bukit Timah well exceed their total market capitalisation with today prices at well above S$1,000 psf.
Gem missed??
By the way, they have been paying dividend of HK$0.08 per year at least for the past 5 year and dividend yied of 4%. The only problem is that they are traded in HK$ and highly illiquid.
Wah you have found a gem in Tan Chong. After doing a quick read of its financial statements, it is grossly undervalued indeed. The landbank is the gem while the motor biz is just so-so because it mainly operates in a tight environ in SG. I think the profits can't grow fast, if at all.
The dividends are less than you state: it was 6.5 HKcents, or lower, in the past couple of years. For FY12, it has gone up to 7 HKcents, so the yield is about 3.7%. Ok only.
The stock is traded in SG and HK exchanges -- the prices are the same and there is no arbitrage opportunity. The HK investors don't appreciate this stock anymore than SG investors do.
The only way the stock can fly is if Tan Chong unlocks the value of its landbank in Bt Timah -- but will it do so anytime soon? The property cycle is turning flat or down, so ......
Beside me, savy investor like Tan sri Quek Leng Chan have already accumumlated 18.1% over the year under Gucco Group and I believe more fund manager may be interested in this unnotice stock.
Beside us, savy investor like Tan sri Quek Leng Chan have already accumumlated 18.1% over the year under Gucco Group and I believe more fund manager may be interested in this unnotice stock.
NextInsight
a hub for serious investors
