Why Fuyu is a potential takeover target
Its strong balance sheet says a lot.
Fuyu appears an attractive privatization candidate by larger industry peers, said RHB.
The research house cited the company’s net cash of SGD0.13 cents/share, zero debt, strong cash generation and low capex requirements as key reasons.
It adds that Fuyu's NAV of SGD0.22/share – of which most of its fixed assets are booked at cost implies that its valuations are significantly lower than current market value.
Its peers like Broadway and Chosen were recently acquired at much higher valuations.