Ho Bee Investments (S$1.35) – Compelling valuations A JV between Ho Bee and IOI Group has submitted a bid for the last condominium site on Sentosa Cove.
As the tender largely calls for design concept rather than price, we believe Ho Bee stands a good chance of getting the award based on its track record in Sentosa. We understand that take-up for The Turquoise has been good with 47% of the units sold at ASPs of S$2,500psf.
Ho Bee's four mainland projects - Elmira Heights, The Orange Grove, Holland Hill Mansions and Dakota Crescent - will also be launched in 2008. We believe our ASP assumptions are conservative, providing scope for upside surprises.
The stock is trading at a 34% discount to our end-CY08 RNAV estimate and offers 51% upside potential. We maintain our target price of S$2.04 (10% discount to RNAV estimate) and Outperform rating.
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