Since our last update on 10 Jun, GLP has continued to buy back its own shares in the open market and purchased 13.2m shares on 10 occasions for approximately S$24m. The group has by now purchased some 39.7m shares for S$72m since its FY16 results announcement on May 19.

We reiterate our view that, given the group’s strong balance sheet, there is significant capital to deploy and we believe that these share buybacks are accretive to shareholders at currently undervalued prices. We continue to take a positive view on management team’s pragmatic and disciplined approach to capital allocation and continue to see long-term value in GLP’s shares.

Maintain BUY with an unchanged fair value estimate of S$2.37.

Source: OCBC Research - 23 Jun 2016