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UOB Kay-Hian Calculation Mistakes may be an Investment Opportunity into Sembcorp Marine
By Investmoolah  •  December 16, 2020
In March 2020, I had covered Sembcorp Marine (SMM) and lamented that given the poor O&M Industry outlook, it is likely interested bidders will pay for the company at 0.7 times its book value. UOB KayHian (UOBKH) has recently released its brokerage valuation of SMM; valuing the company to be worth at 0.7 times its net tangible value at its brokerage estimated 17.8 cents per share and issued a sell call. This is one of the probable contributing factor to SMM share price fall over the past 2 days. I do agree with the analyst in his projection of how much losses SMM will be incurring through to FY22. However, I realize the analyst had made mistakes in his calculation and has opened a possible investment opportunity. UOB KayHian's Calculation Mistakes In the analyst report, SMM's estimated 2021 tangible book value is at 17.8 cents after factoring in a loss per share of 2.1 cents and 1.1 cents in each of the FY leading to it....
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By Investmoolah
A total otaku who loves anime, investing and the occasional K-drama. My financial journey begun at the age of 22 and has revolved around the concepts of "Working Hard", "Saving Well" and "Investing Wisely". Through my journey, I have realized that financial literacy is something we have learnt little during our school days but is one of the most useful and relevant skill that we have to be equipped to take on the real world. Concepts such as compounding and "common sense investing" are skills that will place us ahead of the race to retirement ...
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