TA/TA Global ... May 09

Its core business is in stockbroking, it also owns valuable property assets, including pockets of prime land, in town.

Its current market value of RM1.47 billion or RM1.03 per share, is priced at some 29% discount on the group’s NAV of rm2.06 billion as at Dec 31, 2008.

But the RNAV of the group could be higher. The fact is that TA had applied a revaluation surplus rm890 million on top of the existing NAV of its property business (Rm835 million) and valued the latter at about Rm1.73 billion.

The RM1.73 billion for the property business has yet to be reflected in TA’s balance sheet – it will be able when TA injects the property assets into TA Global for the latter to be listed on Bursa Malaysia.

Looking at it from another angle, TA has a strong balance sheet. Its current NAV of Rm2.06 billion is backed by net short term funds (less total borrowings) of about Rm648 million.