As at June 30, Uni-Asia's NAV was US$1.89, implying a price to book ratio of just 0.36x, versus a sector average of 0.92x. The 60% discount, in the words of Lim and Chan in their Aug 30 note, is "too wide" considering the "high quality of its real assets recorded at values significantly below those of the market."
Lower shipping charter rates, coupled with a weak property of Hong Kong are causing an overhang to persist over Uni-Asia Group.
Nonetheless, with the share price of the investment firm hovering at a wide discount to its peers, and an even wider gap to its book value, SAC Capital analysts Nicole Lim and Matthias Chan are upbeat that there's room for the share price to head up.
