Shares & Derivatives
SPH: Told my family members to cut loss
By Sillyinvestor  •  May 12, 2021
SPH restructuring is a bad deal for shareholders, in the near to middle term. While a demerger from Sembmarine did Sembcorp good, there are several differences. 1) Sembcorp Industries shareholders receive Sembmarine Shares. SPH shareholders get nothing, in fact, they lose NTA value for "nothing" 2) SCI post demerger can focus on renewables, and while one can argue that SPH can now focus on property, SPH is now a property company commanding a valuation that is on par with Capitaland and don't see how it can be compared to Capitaland. In fact, UOL is trading at 0.65 book value, and smaller but established players like CES, Centurion with students accommodation business and also workers accommodation business is trading at 0.47 PB. HongKong Land, btw trades at 0.3. I would agree that SPH would have a different asset portfolio but I think you get the drift. 3) Valuation wise, we can also value a company by dividends yield....
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By Sillyinvestor
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