Shares of Singapore’s property firm Hiap Hoe jumped as much as 12.7% on strong volume on market talk the firm could be a takeover target due to its attractive valuations and potential earnings growth, traders said.
Hiap Hoe shares were up 7.8% at $0.55, after hitting an intraday high of $0.575, the highest level since November 2007. More than 4.6 million shares were traded, four times the average full-day volume traded over the past five sessions.
“Hiap Hoe has chalked up $400 million of progress billings that would be recognised over the next 2-3 years,” DMG & Partners said in a report.
It also noted that Hiap Hoe’s diversification into commercial development will provide the group with a source of recurring income, and valued the stock at $0.61 a share with a buy rating.
On Monday, Singapore’s Business Times newspaper mentioned Hiap Hoe as a takeover target. The shares jumped nearly 11% last week.
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