800 Super Holdings Ltd - Phillip Securities 2018-09-11: Management Raised Their Stake

800 Super Holdings Ltd - Phillip Securities Research 2018-09-11: Management Raised Their Stake 800 SUPER HOLDINGS LIMITED SGX:5TG

800 Super Holdings Ltd - Management Raised Their Stake

  • Largest shareholder now controls 67.63% of the Company.
  • Management controls the largest shareholder.
  • Previous time Management bought shares in the Company was February 2016.
  • Expect to see a price floor at $0.82.



What is the news?

  • 800 Super Holdings Ltd (the Company) announced that Yong Seong Investment Pte. Ltd. (YSI) has increased its interest in the Company.

~ SGinvestors.io ~ Where SG investors share

Largest shareholder, Yong Seong Investment, now controls 67.63% of 800 Super.

  • Yong Seong Investment previously controlled 66.96% of the Company. Yong Seong Investment had purchased 1,191,000 shares at an average price of $0.823/share (total 178,800,000 shares in the capital of the company).

Yong Seong Investment is held by Management.

  • Mr Lee Koh Yong (Executive Chairman), Mr Lee Hock Seong (Brother of the CEO and Executive Chairman) and Mr Lee Cheng Chye (CEO) hold a 28%, 28% and 24% stake in Yong Seong Investment, respectively.


How do we view this?


Previous time Management purchased shares in the Company was February 2016.

  • Yong Seong Investment had purchased 1,461,000 shares over two days at an average price of $0.437. The share price had subsequently rallied more than 150% within two years, as at February 2018.

Expect to see a price floor at S$0.82.

  • We believe this purchase by Management sends a positive signal to the market that they are willing to buy at this price level. As such, we expect to see a price floor at S$0.82. Since our previous report last week (Sept. 3), the share price has pared about half of its fall, following the surprise 4Q FY18 loss.


Investment Action: Maintain BUY, unchanged target price of $1.03

  • The outlook is positive. New projects of the sludge treatment facility and Pasir Ris-Bedok public waste collection contract start contributing in 1Q FY19.
  • Our target price gives an implied FY19e forward P/E multiple of 13.0x. As FY19e is transitional, we think that FY20e is a better representation of a normalised full year. We estimate 8.18 cents EPS and 7.84 cents free cash flow per share in FY20e.
  • The current price of 86.5 cents/share is 11.0x of FY20e free cash flow per share and gives a 2.3% dividend yield (based on our FY20e assumption of 2 cents).





Richard Leow CFA Phillip Securities Research | https://www.stocksbnb.com/ 2018-09-11
SGX Stock Analyst Report BUY Maintain BUY 1.030 Same 1.030



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