Delong up 7.4% as shareholder Evraz says steelmaker 'undervalued'

Delong up 7.4% as shareholder Evraz says steelmaker 'undervalued'

By: 
PC Lee
23/01/18, 12:05 pm

SINGAPORE (Jan 23): Delong Holdings, the Singapore-traded steelmaker with assets in China, jumped 26 cents to $3.76 with 182,000 shares traded.

The stock has risen 44% since Evraz Plc, a Russia steelmaker that owns a 15% stake in Delong, said in a Dec 2017 interview with Bloomberg that the company was undervalued because large investors have long ignored the stock.

Fair value could be US$4 billion to US$5 billion, compared with its current market value of about $200 million, said Aleksey Eberents, director for corporate strategy for Evraz in an emailed interview.

Delong’s enterprise value to EBITDA was less than 1, compared with a typical ratio in China of 10 to 12. Ebitda would be US$390 million in 2017, highest in seven years, he added.

Delong has US$620 million in cash and planning new projects, which could increase its value.

If the value of Evraz’s stake in Delong increased, then the company may sell it to fund other projects or pay higher dividends, Oleg Petropavlovskiy, analyst at BCS Global Markets, was quoted by Bloomberg as saying.

2019 GDP growth to ease to 'slightly above midpoint' of 1.3-3.5% forecast: MAS

SINGAPORE (Apr 26): MAS expects GDP growth to come in slightly above the mid-point of 1.3-3.5% forecast range in 2019, as growth momentum of the global economy has moderated at the turn of the year amid sluggish trade. This was according to the Guide to the Macroeconomic Review April 2019, released by the Monetary Authority of Singapore’s (MAS) Economic Policy Group on Friday morning. On the back of easing GDP growth, MAS has decided to maintain the current rate of appreciation of the SGD NEER policy band. This policy stance is consistent with a modest and gradual appreciation path of ....
Read More >>

CapitaLand Mall Trust kept at 'hold' by OCBC and Maybank on higher mall supply, soft retail sector

SINGAPORE (Apr 26): OCBC Investment Research says CapitaLand Mall Trust’s (CMT) 1Q19 results met its expectations. Gross revenue rose 10.0% y-o-y to $192.7 million while NPI jumped 11.5% to $140.1 million, forming 25.1% of its FY19 forecast. See: CapitaLand Mall Trust declares 3.6% higher DPU of 2.88 cents on higher income OCBC says Funan has already achieved high pre-commitment levels of 90%, and is on track to open in the middle of 2019 and will thus contribute to CMT’s earnings progressively from 2H19. However, the near-term outlook remains cautious given the higher supply, ....
Read More >>

Singapore's GLP plans US$3 billion IPO for its US warehouses

(Apr 26): Singapore-based GLP is planning an initial public offering (IPO) for its US operations that could raise about US$3 billion ($4.09 billion). GLP may seek to value the operations at more than US$20 billion, and the firm is said to have confidentially filed with securities regulators for the planned offering. Much of GLP’s US business stems from a 2014 deal to acquire IndCor Properties from Blackstone Group for US$8.1 billion. The offering could help GLP recoup funds after it was taken private by a management-backed consortium from the Singapore stock exchange last year. GLP ....
Read More >>