buy sell hold 2021


Lim & Tan Securities

Lim & Tan Securities

Olam Group Limited / Olam ($1.43, up 0.02) announced today that its wholly-owned subsidiary, Olam Holdings Pte. Ltd. has successfully completed the sale of a 35.43% minority stake in Olam Agri Holdings Pte. Ltd. (“Olam Agri”) to the SALIC International Investment Company for US$1.24 billion (approximately S$1.7 billion) on December 23, 2022. The transaction, which was previously announced on March 25, 2022, values Olam Agri at an equity valuation of US$3.5 billion (approximately S$4.7 billion).

The successful monetization of Olam Agri at an equity valuation of US$3.5 billion or S$4.7 billion puts the remaining value of Olam at only
S$790 million (total market value of Olam S$5.49 billion). This suggests the remaining stub value (ex-Olam Agri) at only 3x PE, putting Olam Food Ingredients & Olam International Ltd in the undervaluation range as profits from these divisions have ranged between S$250-300 million range. Little wonder that the company has been consistently buying back its shares in the open market with accumulated purchases at 4.868 million share around $1.30-1.40. Olam Group gearing will be reduced from 1.7x to 1.3x post transaction closure.


Sembcorp Marine ($0.139, down 0.1 cent) refers to its announcement dated 27 October 2022 (the “October Announcement”) in relation to the Proposed Combination and would like to provide the following update. The October
Announcement stated that Sembcorp Marine intends to hold its extraordinary general meeting in December 2022 or January 2023 subject to all regulatory approvals and other consents being obtained.


The Company will make further announcements, in compliance with the requirements of the Listing Manual, as and when there are material developments in respect of the Proposed Combination. Sembcorp Marine’s market cap stands at
S$4,363mln with current P/B at 1.1x, while it was loss-making in FY21 and presently does not pay any dividends. Consensus target price stands at S$0.14, representing a 0.7% upside from current share price.



Malaysia Property
Developers turn cautious

Bracing for uncertainty in 2023

External factors such as tightening monetary policy, supply chain disruptions and labour shortage issues will likely linger into 2023 and
continue to weight on property stocks. Developers are turning cautious and intend to slow down their property launches. Industrial parks continue to be favoured. We prefer lowly-geared township developers. Our BUYs: ECW, SDPR, TILB. We also have a tactical BUY on ECWI. Maintain NEUTRAL


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Bucking the trend with positive contracted sales growth.


  • Wave of policy easing measures should support sector recovery, although this will take time
  • Contracted pre-sales rose 23.0% year-on-year (YoY) for 11M22 though contracted gross floor area (GFA) fell 19.7%
  • Financial position likely remains healthy


Yanlord Land Group Limited (Yanlord) is a high-quality Chinese developer with strong exposure to key economic regions in China, such as the Yangtze River Delta, Bohai Rim and Greater Bay Area. Key management’s interests are also aligned with minority shareholders, as Yanlord’s founder, Chairman and CEO Mr. Zhong Sheng Jian owns close to 70% of Yanlord’s total shares outstanding.

Yanlord’s contracted sales fell 24% to CNY59.6b in 2021. While management is targeting a rebound in contracted sales in 2022 to CNY75b, we believe there is possibility of a miss given the Covid-19 resurgence in Shanghai. That said, we believe Yanlord’s healthy balance sheet would allow it to weather the industry headwinds. It has no USD bonds maturing in 2022, and its next earliest USD bond maturity is in Apr 2023 (USD350m).   










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