Excerpts from analyst's report

Phillip Securities analyst: Richard Leow, CFTe, FRM

What is the news?
LeeChengChye800Super 10.14Lee Cheng Chye, CEO of 800 Super.800 Super Holdings Ltd (800 Super) made an announcement on SGXNet on 16 February after market hours that its largest shareholder, Yong Seong Investment Pte Ltd (YSI) has increased its stake in the Company.

» Largest shareholder, YSI, now controls 66.8%. YSI previously held a 66% stake in 800 Super. YSI had purchased 782,000 shares for S$340,170 (average price 43.5 cents/share) and 13,900 shares for S$5,977 (average price 43 cents/share) on 15 February; and 665,100 shares for SS$292,644 (average price of 44 cents/share) on 16 February 2016.

» YSI is held by Company insiders. Lee Koh Yong (Executive Chairman), Mr Lee Hock Seong (Brother of the CEO and Executive Chairman) and Mr Lee Cheng Chye (CEO) hold a 28%, 28% and 24% stake in YSI, respectively. Through their own direct interest and indirect interest via YSI, they now hold a 21.5%, 21.5% and 18.4% stake in 800 Super, respectively.

What do we think of this?
» Expect to see a price floor at S$0.43. With this increase in stake, we believe that this sends a positive signal to the market that insiders are willing to buy at this price level. As such, we expect to see a price floor at S$0.43.

Company Price (S$) Mkt Cap (S$m) Trailing P/E Trailing P/B Trailing EV/EBITDA ROA (%) ROE (%)
800 Super 0.435 86.7 4.8 1.5 5.2 15.1 34.8
Colex 0.300 46.4 7.9 1.6 4.0 15.1 21.9

Source: Bloomberg (Updated: 18 April 2016)

Investment Actions
Based on last closing price of S$0.435 and the price floor that we are expecting at S$0.43, we believe there is limited downside risk. We continue to like 800 Super for its defensive business model amidst the current market volatility. We maintain our target price of S$0.58 based on 7.5x FY16e P/E multiple. Reiterate BUY.

You may also be interested in:

You have no rights to post comments

Counter NameLastChange
AEM Holdings2.2600.120
Avi-Tech Electronics0.265-
Best World1.6800.050
Broadway Ind0.0990.012
China Sunsine0.4000.010
Delfi Limited0.960-0.005
Food Empire1.440-
Fortress Minerals0.280-
Geo Energy Res0.330-
GSS Energy0.026-0.001
Hong Leong Finance2.470-0.010
Hongkong Land (USD)3.260-0.120
ISDN Holdings0.315-0.005
IX Biopharma0.045-
Jiutian Chemical0.0260.001
KSH Holdings0.250-
Leader Env0.050-0.001
Medtecs Intl0.131-0.001
Nordic Group0.3400.005
Oxley Holdings0.089-0.002
REX International0.1350.002
Sinostar PEC0.138-0.002
Southern Alliance Mining0.600-
Straco Corp.0.500-0.030
Sunpower Group0.220-0.010
The Trendlines0.085-
Totm Technologies0.023-
Uni-Asia Group0.820-0.020
Wilmar Intl3.3600.040
Yangzijiang Shipbldg1.7800.030

We have 611 guests and no members online

rss_2 NextInsight - Latest News