Nigel Stevenson, CFA
Research analyst, value, special situations

Great Eagle: A Bargain At Half Its SOTP Valuation

Great Eagle Holdings (OTCPK:GEAHF) (0041.HK) is a Hong Kong-listed holding company with a market cap of around HK$17bn (US$2.2bn). Its shares trade on an OTC basis in the US, although they are much more liquid in Hong Kong. At the current share price, I believe Great Eagle represents a genuine bargain: its shares are trading at a discount of 54% to my sum-of-the-parts valuation and the company has net cash equal to nearly half its market cap.

Background

The company has controlling shareholdings in two Hong Kong-listed property companies. It owns 58% of Champion REIT (OTC:CMPNF), which has prime office and retail properties in Hong Kong. I recently wrote a detailed article about Champion, which...

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