LH Slides 4% from Singaporean State Fund’s Exit! Analysts’ Recommend “BUY” at TP ฿12.1
LH plunged over 4% in the morning session on June 17 after its 3rd major shareholder had sold all of LH's shares. Analysts recommend "BUY" at TP ฿12.10.
The share price of Land and Houses Public Company Limited (LH) declined over 4.4% in the morning session on June 17, 2019, with a trading volume around four times higher in three months daily average.
A sharp plunge of LH after a constant growth in share price might be due to the news reported by a source familiar to the matter that GIC Private Limited, a sovereign wealth fund established by the Government of Singapore, had sold all of its shares held in LH, totaling 836 million shares to book THB 9.1 billion at the price range represented 2.7% – 4.2% discount to the closing price on Friday at ฿11.30/share.
GIC Private Limited was the third major shareholder of LH with 836,880,654 shares, represented 7% of LH’s paid-up stocks.
However, the Singaporean sovereign wealth fund remains committed to continuing partnership with Thailand’s Land & Houses in future investment opportunities, GIC Real Estate Chief Investment Officer Lee Kok Sun said in an emailed statement to the source.
According to the analytics, the consensus target price of LH is ฿12.1/share with 20 “BUY” recommendations from 27 analysts while 6 analysts suggest “HOLD” and one prefers “SELL”.
The consensus expects LH to report revenue of THB 37.3 billion with a net profit of over THB 10 billion in 2020.
Meanwhile, Asia Plus Securities has given the highest target price at ฿13.60/share (24.77% upside), selecting LH as a top pick for solid business and dividend yield of almost 7%p.a. UOB Kay Hian and Thanachart Securities also recommend “BUY” at ฿12.10/share and ฿13.50/share, respectively.