SINGAPORE (June 29): SAC Capital has started Hong Lai Huat Group at “buy” given expectations of a strong recovery in 2018 and 2019 as it recognises higher sales from D’Seaview.
The stock -- more popularly known as HLH Group -- is also trading at 0.9 times FY19 earnings and 0.28 times FY17 book versus average of 0.9 times.
“We value HLH at 51 cents per share after applying a 40% discount to its RNAV. This translates to an implied FY18 P/BV of 0.8 times,” says analyst Eing Kar Mei in a Friday report.
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