PORSCHE AUTOMOBIL HOLDING
Belmont Asset Management v i ews Porsche Automobil Holding (PAH) as a cost-effective means of buying the VW Group for offshore client portfolios, owing to its holding company discount of some 25%. The group houses a portfolio of world-class brands currently enjoying dominant market positions – including Porsche, Bentley, Audi and Lamborghini – as well as several lowlier bread-and-butter brands. Despite recent headwinds, Volkswagen is well-placed in China through its 50/50 JV arrangement, which has proved to be a successful means of accessing this market. Moreover, it boasts sound management and trades at less than book value, while many of its peers are trading at nearly t wice book value. Belmont rates the stock as a longterm buy.