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Global Logistic Properties Ltd - OCBC Investment 2016-06-09: Actively conducting share buybacks

Global Logistic Properties Ltd - OCBC Investment 2016-06-09: Actively conducting share buybacks GLOBAL LOGISTIC PROP LIMITED MC0.SI 

Global Logistic Properties Ltd: Actively conducting share buybacks 

  • Since its FY16 results announcement on May 19, GLP has been actively conducting company share buybacks in the open market. 
  • So far, the company has gone into the market on 14 occasions to purchase some 26.7m shares for S$48m, which translates to an average price of S$1.80 per share. 
  • Given the group’s strong balance sheet with, on a pro-forma basis, US$2.0b cash with a look-through net debt to assets ratio of 24%, there is significant capital to deploy and we believe that these share buybacks are accretive to shareholders at currently undervalued share prices. 
  • We continue to take a positive view on management team’s pragmatic and disciplined approach to capital allocation in current conditions, and continue to see long- term value in GLP’s shares. 
  • That said, we are cognizant of the increased scope for volatility ahead as the market continues to seek clarity regarding Chinese macro-economic risks. 
  • Maintain BUY with an unchanged fair value estimate of S$2.37.





Eli Lee OCBC Securities | http://www.ocbcresearch.com/ 2016-06-09
OCBC Securities Analyst Report BUY Maintain BUY 2.37 Same 2.37


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