Guoco (53 HK): Now Even A Deeper Value Play

• After GuocoLand (GUOL SP)‘s Offer for Guocoland Malaysia (GUOL MK), it seemed appropriate to revisit Guoco Group (53 HK). Just as well - it is totally bombed out.

• I see Guoco’s implied stub - net of GuocoLand, Hong Leong Financial (HLFG MK), Bank of East Asia (23 HK), and Rank Group (RNK LN) - at a decade low.

• It’s coming up to eight years since the Quek family reloaded an Offer for Guoco. Which subsequently failed. Time for the family to step up. Again.

Guoco is super illiquid - look away now if this is not your bag

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The Trade:

• I like Guoco here either as a potential privatisation play, or simply as a deep value play.

• I see the implied stub - net of all the key listcos - at its lowest level since March 2016.

• The look-through P/B is just 0.35x.