Low Keng Huat - Undervalued Gem - Target Price $0.89 (40% Upside)
Low Keng Huat - Undervalued Gem - Target Price $0.89 (40% Upside) Low Keng Huat (Singapore) Limited (“LKHS”) is a builder established since 1969. Today, its business has grown to encompass building construction, property development, hotels and investments. LKHS is a deeply undervalued property development stock with a dividend yield of 4.65% . Its current share price is S$0.64 as at 21st April 2017. Our conservative estimate for its RNAV per share = S$1.27 Note that the above estimate excludes any profits from Kismis Residences, Balestier Towers, AXA Tower Strata Sale, and Perumal Road Mixed Development. Initiate with Strong Buy , Target Price = S$0.89 (40% Upside) , a 30% discount to its RNAV per share of S$1.27. We believe a 30% discount to RNAV is reasonable as our estimate excludes future profits of the above projects. Our RNAV estimate will be adjusted upwards on further clarity of the above projects' profitability.