TA Global’s uncertain earnings outlook
Ooi Chia Shen | 30 Oct 2015 00:30
TA Global chairman Tiah Thee Kian. The group is expected to be affected by its high exposure to volatile currencies and a softening property market
Property group TA Global Bhd is rich in valuable assets that provide a good recurring income for the group. Most of these assets in the Klang Valley and in several countries are undervalued as they have not been revalued in 10 years.
That explains why the share price is undervalued compared with TA Global’s real net asset value (NAV) per share.
The counter closed at 28.5 sen on Oct 28 while its NAV per share as of July 31 is 49 sen. “This net asset value per share would be higher if the group were to revalue all its properties and lands,” an observer says.
TA Global is an asset-rich company but this has not translated to share-price performance. Over the last three years, the counter has been trading within a range of 25 sen and 44 sen – lower than its NAV.
Despite the undervaluation, an analyst says, the group faces a lack of short-term catalysts for its earnings and this may dampen shareholder confidence.
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