OUE expanding from hospitality to hospital industry

From hospitality to the hospital industry, OUE Limited is certainly going places, But the question now is whether the share price of the real estate company is grossly undervalued? It certainly seems so as current trading price was $1.85 while Net Asset Value (NAV) amounted to a staggering $4.46.

In my opinion, the laggard share price performance could be due to legacy issues. Not many investors may be aware of the story of OUE and how it had unfolded through the years.

The company was formerly known as Overseas Union Enterprise Limited and changed its name to OUE Limited in August 2013. Read on to find out how corporate events had changed the destiny of this revered SGX-listed company. Recent developments may shed some light on its falling share price.

History of OUE

Founded in 1964, OUE had a rich history. The real estate developer started life as Overseas Union Enterprise Limited when legendary banker, Lien Ying Chow decided to enter the hotel industry. Many Singaporeans, especially those older folks, would remember Lien as the founder of Overseas Union Bank (OUB), the smallest bank among the “Big Four” in the 90s.

Like many family-owned businesses, OUB and OUE had cross-shareholdings. Thus, when OUB was acquired by UOB in 2001, it was briefly managed as a subsidiary by UOB.

OUE

In the early 2000s, the government of Singapore decided to consolidate the banks. This subsequently led to a wave of banking consolidations which saw DBS making a hostile bid for OUB. However, UOB upstaged the bid and made a successful takeover of OUB in 2001. As OUE was part of UOB back then, the company became part of the bank’s stable of companies.

However, Monetary Authority of Singapore further mandated that local banks to hold no more than 10% of non-core banking assets by 2006. The move was aimed at local banks such as UOB and OCBC, which tend to [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

Magically yours,

SG Wealth Builder

Updated: October 27, 2018 — 4:03 pm

6 Comments

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  1. SG Wealth Builder,

    The write up on this company (OUE) was well researched and written which has provided brief history of the company and a clear picture of what going on in the company .

    Similarly, could you write about the counter Dyna Mac as the coverage by broking house has stopped quite a while since 2016 .

    Best Regards

    Tommy.

  2. Hi Tommy,

    Thank you for your comments. OUE is an interesting counter to be honest.
    I will proceed to research on Dyna Mac. Please stay tune!

    Regards,
    Gerald
    https://www.sgwealthbuilder.com

  3. Hi SG Wealth Builder,

    We have noted that for the past six month till today, the share price of OUE was always on the downhill manner. Could you make a comprehensive study on the counter to follow up on the latest issue facing the company.

    Best Regards
    Tommy Lee

  4. Hi Tommy,

    Sure, will update on OUE. Please stay tune.
    Thank you.

    Regards,
    Gerald
    https://www.sgwealthbuilder.com

  5. Hi SG Wealth Builder,

    Could you make a comprehensive study based on the Q3/19 result and look into the financial figure.

    This counter had been relatively quite after the x dividend period and it is treading around $1.48.

    Best Regrds

    Tommy LEE

  6. Hi Tommy,

    Sure, I will do an in-depth research and post an article on it.
    Merry Christmas!

    Regards,
    Gerald
    https://sgwealthbuilder.com

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