Return of the land bank king


Investment Thesis:
Undervalued land bank that can last another decade. Bukit Sembawang (BSEL) offers compelling value at 0.86x P/NAV (below historical mean of 0.94x). BSEL is equipped with a sizeable land bank of over c.240,000 sqm slated for coveted
landed homes. The group has enough inventory to sell for the next decade, with the land pegged at extremely low historical costs (we estimate an RNAV of S$10.76/share). Our TP of S$5.92 is based on a 45% discount to RNAV.