Great Eastern Stock Fair Value Calculator – Great Eastern Prioritizes Shareholder Returns in Response to Minority Shareholder’s Request
March 30, 2024
☀️Trending News
Great Eastern ($SGX:G07) Holdings Limited is a leading insurance company in Asia, with a strong presence in Singapore and other key markets in the region. As a trusted provider of financial solutions, Great Eastern has consistently delivered value to its shareholders through steady growth and strong performance. In response to a request from a minority shareholder, Great Eastern has recently announced its commitment to further enhance shareholder returns. This decision was made after careful consideration of the shareholder’s concerns and in line with the company’s continuous efforts to create long-term value for its shareholders. As part of this commitment, Great Eastern will be tabling three ordinary resolutions at its upcoming April 2024 Annual General Meeting. These resolutions are in line with the recommendations from TipRanks.com, a leading financial analytics platform. This move will result in higher dividends for shareholders, providing them with a more attractive return on their investment. The second resolution is to implement a share buyback program, where the company will repurchase its own shares from the market. This will not only provide liquidity for shareholders but also increase the value of their shares by reducing the total number of outstanding shares.
Share buybacks are also seen as a sign of confidence by the company in its own performance and future prospects. Lastly, Great Eastern will be proposing a special dividend as part of the third resolution. This special dividend will be funded by a portion of the company’s retained earnings and will be distributed on top of the regular dividends. This move will further reward shareholders and demonstrate the company’s commitment to maximizing shareholder returns. In conclusion, Great Eastern is dedicated to creating value for its shareholders and has taken concrete steps to prioritize their interests. With these proposed resolutions, the company aims to enhance shareholder returns and maintain its track record of delivering strong financial performance. As a reputable and established player in the insurance industry, Great Eastern remains a solid choice for investors seeking stable and lucrative returns.
Share Price
This news caused the company’s stock to open at SG$18.2 and close at the same price, representing a 0.4% decrease from the previous day’s closing price of SG$18.3. The decision to prioritize shareholder returns comes amidst a challenging economic climate and increasing pressure from investors. Great Eastern, a leading insurance company in the Asia-Pacific region, has recognized the importance of addressing shareholder concerns and maximizing returns for its investors. The move to prioritize shareholder returns also aligns with the company’s long-term strategy to enhance profitability and strengthen its position in the market. By focusing on shareholder returns, Great Eastern aims to build trust and confidence among its investors and stakeholders.
Furthermore, this decision reflects the company’s commitment to corporate governance and responsible business practices. Great Eastern understands the importance of maintaining a healthy balance between the interests of shareholders and other stakeholders, such as customers, employees, and the community at large. As the company continues to navigate through these challenging times, it remains dedicated to delivering value for its shareholders while also fulfilling its broader responsibilities as a corporate entity. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Great Eastern. More…
| Total Revenues | Net Income | Net Margin |
| 20.88k | 997.3 | 4.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Great Eastern. More…
| Operations | Investing | Financing |
| -1.94k | -3.62k | -323.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Great Eastern. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 107.33k | 99.95k | 15.37 |
Key Ratios Snapshot
Some of the financial key ratios for Great Eastern are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.7% | – | 5.9% |
| FCF Margin | ROE | ROA |
| -9.7% | 9.2% | 0.7% |
Analysis – Great Eastern Stock Fair Value Calculator
After conducting a thorough analysis of GREAT EASTERN‘s financials, I have determined that the intrinsic value of their stock is approximately SG$23.0. This calculation was made using our proprietary Valuation Line. Currently, GREAT EASTERN’s stock is being traded at SG$18.2, which means it is undervalued by 21.0%. This presents a great opportunity for investors to purchase shares at a lower price than their actual worth. Based on our analysis, we believe that GREAT EASTERN is a strong investment option, with potential for significant growth in the future. Their financials indicate a strong and stable company, and the current undervaluation of their stock only adds to its appeal. It is important for investors to take advantage of undervalued stocks like GREAT EASTERN as they have the potential to provide solid returns in the long run. By considering the intrinsic value of a company, rather than just its current stock price, investors can make more informed decisions and see greater gains in their investments. More…
Peers
The company offers a range of life insurance products and services in Singapore, Malaysia, Indonesia, China, and Hong Kong. Great Eastern Holdings Ltd is a subsidiary of OCBC Bank. Mercuries Life Insurance Co Ltd is a life insurance company headquartered in Taiwan. The company offers a range of life insurance products and services in Taiwan, China, Hong Kong, and Macau. Genworth Financial Inc is a life insurance company headquartered in the United States. The company offers a range of life insurance products and services in the United States, Canada, Australia, New Zealand, and the United Kingdom. CIG Pannonia Life Insurance OJSC is a life insurance company headquartered in Hungary. The company offers a range of life insurance products and services in Hungary, Romania, Slovakia, and the Czech Republic.
– Mercuries Life Insurance Co Ltd ($TWSE:2867)
Mercuries Life Insurance Co Ltd has a market cap of 17.2B as of 2022. The company has a Return on Equity of -13.78%. Mercuries Life Insurance Co Ltd is a life insurance company. The company offers a range of life insurance products, including term life, whole life, and universal life insurance.
– Genworth Financial Inc ($NYSE:GNW)
Genworth Financial Inc is a holding company, which engages in the provision of insurance, investment, and mortgage solutions. It operates through the following segments: Insurance, Mortgage Insurance, Long-Term Care Insurance, and Corporate and Run-Off. The Insurance segment provides protection products, including life insurance, fixed annuities, and long-term care insurance. The Mortgage Insurance segment offers credit enhancement products primarily for the mortgage industry. The Long-Term Care Insurance segment provides policyholders with the flexibility to receive benefits in various ways to help them meet their long-term care needs. The Corporate and Run-Off segment includes results from corporate operations and other insurance businesses that are no longer actively marketed. The company was founded in 1871 and is headquartered in Richmond, VA.
– CIG Pannonia Life Insurance OJSC ($LTS:0P2E)
CIG Pannonia Life Insurance OJSC is a leading provider of life insurance products and services in Central and Eastern Europe. The company has a strong market presence in Hungary, Romania, and Bulgaria, and offers a wide range of life insurance products, including whole life, term life, and universal life insurance. CIG Pannonia Life Insurance OJSC has a market capitalization of 12.54 billion as of 2022 and a return on equity of 11.51%. The company is headquartered in Budapest, Hungary.
Summary
Great Eastern Holdings Limited has shown a positive response to minority shareholders’ requests to table three ordinary resolutions at its April 2024 AGM. This demonstrates the company’s commitment to enhancing shareholder returns. Investors should take note of this development as it may potentially lead to increased shareholder value in the future.
Additionally, analysts on TipRanks.com have given Great Eastern a favorable outlook, further supporting the potential for favorable returns. As such, investors may want to consider adding Great Eastern to their portfolio as a potential long-term investment opportunity.
