Friday, 8 June 2012
Asas Dunia Berhad deeply undervalued?
Main board listed property company, Asas Dunia Berhad (5975), holds significant land bank in Seberang Prai. Land held for development approximately 1125.2 acres.
I believe the lands are appreciating and will appreciate further in view of the good prospect after the opening of the Second Penang Bridge scheduled to complete by September 2013.
Checks on Mudah.my website revealed that the asking price for the land there was about RM25/sq ft. The lands held by ASAS are currently carrying average book value of only RM4.37/sq ft!
Revaluation of the land at RM15/sq ft will bring a total surplus of RM521 million, or translate into RM2.72 per share.
Current share price RM1.30. Approximate RNAV per share RM4.73.
Value the share at 0.5x book value, the stock has upside of about 82% (from RM1.30 to RM2.37).
Note that the stock is tightly held and currently not covered by any research house.