Cai Junyi, 33, CEO of C&G: Key driver of C&G's business, and holds a master's in economics
C&G Industrial has emerged as the stock with the most unrecognized value among SGX-listed companies in a complex analysis by Business Times senior correspondent Teh Hooi Ling.It has a lot of cash - some 40 per cent of its market cap is represented by cash. On top of that, assuming it can maintain its first-half operating profit, the company may rake in $44.8 million in pre-tax profits this year, she wrote.According to Bloomberg, the cost of capital for C&G - a producer of PET chips used to manufacture polyester fibre - is 10.73 per cent.Based on this, that business is worth $335 million, assuming it can maintain that performance in perpetuity.A caveat Hooi Ling had: In the analysis, investors have to decide if they think the respective companies can maintain their current performance for their existing businesses, and that these are not top-of-the-cycle figures.The analysis was based on McKinsey’s three-step approach to disaggregate a company's current market value into its current performance, its return premium, and the value expected from its future growth.
Source: Business Times
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