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Paul H Sutherland's avatar

any update on the NAV for Hpar sp?

paul@paulhsutherland.com

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Michael Fritzell's avatar

Hi Paul,

Here are rough numbers. Now the UOL and UOB numbers are updated, whereas the property rental income and healthcare division profits are historical. I'm a believer that both of these segments will ultimately recover, but I think that's where the uncertainty lies. I think that investors are currently nervous about China's ongoing lockdowns and they're asking themselves whether the borders will even open up again. Office rentals have come down a bit in recent years, especially during COVID-19, but I personally think that the work-from-home trend will mostly reverse after COVID-19 becomes endemic. I use a 25% HoldCo discount, which is pretty standard for Singapore conglomerates.

Healthcare division: 15x 2019 EBIT of SG$75 million: 1122

Investment holdings: Market value of listed assets: 2549

Property assets: 6% cap rate against NPAT of SG$12.6m: 180

Net cash: Reported number as of 31 December 2021: 596

Value of equity: 4447

Discount: 25%

Value of equity (adjusted): 3335

Shares outstanding: 221

Intrinsic value per share: 15.1

Current share price: 10.7

Best regards,

Michael

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