Guoco (53 HK): Still Deep Value. Still Illiquid

• I see Guoco Group Ltd (53 HK)‘s implied stub at around a decade low. And a trailing P/B of 0.34x, versus the five-year average of 0.4x.

• ~67%-Held GuocoLand (GUOL SP) (trading at 0.64x P/B) looks set to privatise ~68%-held Guocoland Malaysia (GUOL MK) at ~0.55x P/B, further adding to Guoco’s look-through “cheapness”.

• It’s coming up to eight years since the Quek family last attempted to take Guoco private. I can see the family stepping up here.

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

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The Trade:

• Guoco remains a potential privatisation play; and/or a deep value play.

• I see the implied stub - net of the key listcos - around a decade low.

• The look-through P/B is just 0.34x.