Market Talk:

Seems like there might be something valuable in the company which made Oxley CEO and deputy CEO buying into IHC shares recently.

Ching Chiat KwongChing Chiat Kwong, CEO of Oxley, and his deputy collectively own a 21.08% stake in IHC, close to IHC CEO's 23.37% stake.A quick look into IHC assets shows that they are assets rich, with properties in China, Japan and Australia.

They also have a few projects in their pipeline which includes a mixed development in Msia, KL. The assets in theses region seems to be where Oxley is active in as well.

With a NAV of 14.5c (Not even looking at their RNAV), it seems to us that IHC might be a steal at current level. 

But the real action might only come if the duo continues shoring up shares of IHC to a certain level, maybe near 30% in total (Which they have. Combined staked now is nearing 23%), which could trigger a fight for IHC shares, causing price to surge.

Eric Low HafaryEric Low, deputy CEO of Oxley. NextInsight file photoAlso, a recently approved share buy back mandate might also provide some support to the share price.

One thing to note though is that IHC has does not have much revenue and profits, which in turn leads to poor cash flow. 

This potentially could be a problem if the co still does not do anything to their existing assets.

(They previously had wanted to takeover HMC, which will improve their cash flow, but the deal seems to be a no go now after share price has collapsed).


So, what do you think?

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