[ET Net News Agency, 3 January 2020] Citi Research raised its target price for Wharf
(Holdings) (00004) to HK$28 from HK$27.5 and maintained its "buy" rating.
With Wheelock raising an additional 3% stake in 2H 2019 to 69.3%, the research house
said the stock is still on Citi's radar screen for potential privatization by Wheelock
(00020).
Trading at 0.42x PBR and a 65% discount to NAV, Citi sees current Wharf valuation as
cheaper than at the time when Wheelock privatized Wheelock Properties SG (2018 at 0.65x
PBR) and similar to Wheelock Properties HK (2010 at 0.4x PBR).
That said, the exact timing remains in the hands of Wheelock, but Citi sees the current
valuation with a 3.3% yield offers good downside protection. (KL)