OUE Limited - OCBC Investment 2016-09-16: Share buybacks in the open market

OUE LIMITED LJ3.SI

OUE Limited - Share buybacks in the open market

OUE has been conducting company share buybacks in the open market and has so far has gone into the market on 8 occasions to purchase some 1.05m shares for S$1.7m, which translates to an average price of S$1.58 per share.

We believe that these share buybacks are accretive to shareholders at currently undervalued share prices, particularly after recent encouraging sales at OUE Twin Peaks after the group’s marketing efforts and the implementation of a deferred payment scheme. These sales at OUE Twin Peaks will significantly reduce the risk in the group’s asset valuations, in our view, and we see longterm value in OUE shares at current levels.
Looking ahead, we expect sales at Twin Peaks to continue into 2H16 and also look forward to the completion of asset enhancement works at OUE Downtown which is on track to complete by end 2016.
Maintain BUY with an unchanged fair value estimate of S$2.17.

Eli Lee OCBC Investment | http://www.ocbcresearch.com/ 2016-09-16

OCBC Investment SGX Stock Analyst Report BUY Maintain BUY 2.17 Same 2.170