Stock Name: MetroHldg
Company Name: METRO HOLDINGS LIMITED
DMG & Partners Research in a Jan 20 research report says: "Metro has evolved from its early days as a department store operator to, increasingly, a property play on China's commercial real estate market.
"To date, all its property ventures have been profitable, with divestment gains ranging from 5-25% premium over book value. Over the past five years, shareholders' equity compounded at a CAGR of 9%, before taking into account dividends.
"The group is currently in the midst of selling its 50% stake in retail mall Metro City Beijing at a price tag of RMB 1.25 billion, a 50% premium over its latest valuation. Should the deal be successful, it will be able to book a pretax profit of $87.4 million, with NAV per share raised by 9 cents.
"We value the stock at 86 cents per share on a discount of 30% to RNAV, suggesting 29% upside from current levels. BUY"
Company Name: METRO HOLDINGS LIMITED
| Research House: DMG | Price Call: BUY | Target Price: 0.86 |
DMG & Partners Research in a Jan 20 research report says: "Metro has evolved from its early days as a department store operator to, increasingly, a property play on China's commercial real estate market.
"To date, all its property ventures have been profitable, with divestment gains ranging from 5-25% premium over book value. Over the past five years, shareholders' equity compounded at a CAGR of 9%, before taking into account dividends.
"The group is currently in the midst of selling its 50% stake in retail mall Metro City Beijing at a price tag of RMB 1.25 billion, a 50% premium over its latest valuation. Should the deal be successful, it will be able to book a pretax profit of $87.4 million, with NAV per share raised by 9 cents.
"We value the stock at 86 cents per share on a discount of 30% to RNAV, suggesting 29% upside from current levels. BUY"
No comments:
Post a Comment