Maintain HOLD recommendation

• SGX Research Incentive Scheme maintain HOLD on Koda as they believe it remains too early to upgrade the stock as risk of more bad news remains. Target price remains at S$0.19.

• Blackhorse’s married deal with the Koh family highlights the liquidity risk inherent in owning Koda’s shares. As such, investors who are not prepared to hold onto their shares for a longer time frame may not want to be in this stock.

• At the same time, the Koh family’s purchase highlights the confidence that management has in the long term prospects of the company and is also a very commendable move as open sales in the market could have caused a drastic decline in the share price and possibly spark fears that the company could be in trouble.