ASEAN (Indo) & China-focused. Ex-Deputy HoR UBS.

Johannes Salim, CFA

Event-Driven

<ul>
<li>Our stub valuation on <a href="https://www.smartkarma.com/entities/10665" target="_blank" data-smartkarma-citation="entities:10665:1">Cosco Capital Inc (COSCO PM)</a> suggests NAV discount of a whopping 57% (more than 2 SD below its 5-yr average).</li>
<li>Further analysis indicates that the widening NAV discount has nothing to do with corporate governance discount given quiet acquisition activities past 12 months.</li>
<li>COSCO trades at a compelling 7.7/7.0x 2018/19 PE (45-47% discount to average Philippines conglomerate sector).</li>
</ul>


Our stub valuation on Cosco Capital Inc (COSCO PM) suggests NAV discount of a whopping 57% (more than 2 SD below its 5-yr average).
Further analysis indicates that the widening NAV discount has nothing to do with corporate governance discount given quiet acquisition activities past 12 months.
COSCO trades at a compelling 7.7/7.0x 2018/19 PE (45-47% discount to average Philippines conglomerate sector).


Cosco Capital: Widening NAV Discount (More than 2 SD Below 5-Yr Average) Not Justified