| Hong Fok (HFC SP) has completed the sale of its listed associate in Hong Kong, Winfoong International, to HK Guoxin Investment Group, via a transfer of shares agreement. At HK$0.3618/share, the sale price is a 239% premium over Winfoong’s latest NAV of HK$0.1066/share. The sale will generate a total gain of S$80.6m, of which S$56.4m is attributable to Hong Fok shareholders. As a result, NTA/share is lifted by 4% to $2.19.  International Building in Orchard Rd is a key asset of Hong Fok Corp. Photo: CompanyHong Fok’s key assets include the International Building at Orchard Road, where the group is developing a 600-room hotel at the adjacent carpark and building extension, and the Concourse, a mixed development at Beach Road. Current share price is implying a massive 70% discount to its NAV. We see upside from current levels as valuation reverts from depressed levels. Our fair value of SGD1.10/share is based on 50% discount to its RNAV and offers 64% upside from current levels. |
