This morning I added property developer and investor K Wah (HK:173) to the private portfolio. My average purchase price was HK$3.25 per share.
K Wah is essentially an asset play, selling at a very deep discount to its NAV while, at the same time, offering a reasonable 3.4% trailing dividend yield. The balance sheet is acceptable, with about 34% gearing as at the most recent interim balance date. My expectation is that monetisation of some of the company's assets through the sale of completed developments will translate into a reduced discount to NAV.