We value GOB at MYR1.35, at 50% discount to RNAV. Its current valuations are undemanding at a 5.5x P/E and 0.7x P/BV. After a change of management in 2009, GOB’s earnings turned around from FY12 as a result of enhancements in the design of its property products. Its remaining 350 acres of leasehold land at Batu Kawan is a jewel, allowing it to tap on the long-term growth prospects on Penang’s mainland.
- The change since 2009. Equine Capital changed its name to Global Oriental in Sept 2012. The previous shareholders and management were gradually removed after Equine’s former executive chairman disposed of his 29% stake to GOB’s current executive director, exiting the company after the 12th General Election. Since then, GOB’s property products have seen significant design and concept enhancements. The company’s recent project launches have been highly successful, with units at da:men in USJ and Springville Residence at Equine Park > 90% sold.
- A jewel in 350 acres of land in Batu Kawan. This 350 acres of land GOB owns in Bandar Cassia Batu Kawan is worth a gross development value (GDV) of MYR2.3bn. The land is very near to the exit of the Penang Second Bridge. As more multinationals set up their plants in Batu Kawan Industrial Park, the demand for residential properties on Penang mainland has risen as job opportunities also increased. The recent launch of Callisia 2 has been fully taken up, while the next phase is slated for launch in December this year.
- Tail-end development at flagship Taman Equine. Over the next two years, GOB is expected to complete the development of its flagship Taman Equine on the remaining 80 acres of land. GOB plans to put up a community mall next to the existing AEON mall. Also in the pipeline are the launches of some condos/SOHO units, semi-Ds and bungalows, as well as some bungalow land plots.
- JV with Lembaga Getah Malaysia (LGM). GOB has also tied up with LGM to develop a mixed development project with a GDV of MYR900m along Jalan Ampang. GOB plans to roll out the residential component in mid-2014.
- Fair value at MYR1.35. We value GOB at MYR1.35, based on a 50% discount to RNAV. We believe the stock will gradually garner more investor interest as GOB builds up an earnings delivery record.
Source: RHB
Chart | Stock Name | Last | Change | Volume |
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Created by kiasutrader | Jun 14, 2016
Created by kiasutrader | May 05, 2016
Q2 results.Revenue up 18.9m.Profit up 2.7m.EPS 3.3 vs 2.16.Fair value 1.35.Now at 0.75.A LAGGARD STOCK.
2013-11-22 14:19
JTFX
GOB GOB..another laggard...RHB FV 1.35
2013-08-19 11:11