Friday 21 December 2012

Naim, a good value play?

Naim has 33.63% stake in Dayang.

At noon break, Dayang closed at RM2.43
Dayang total shares outstanding: 550m
Dayang market cap: RM1.3365b (RM2.43 x 550m)
Worth of Naim's investment in Dayang: RM449.46m (1.3365b x 0.3363)
Naim total shares outstanding: 250m
Worth of investment in Dayang per Naim share: RM1.798 (RM449.46/ 250m)
Naim's share price at mid-day closing: RM1.78

This means that investors are getting the construction and property development businesses in Naim, which currently contribute about 2/3 of its total earnings for FREE!

In its book, Naim still has about 2,620 acres of land for development. On top of that, it has 5.2% of treasury shares which could be distributed to reward the shareholders.

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