Maintain BUY, TP reduced to $0.90. The co is in sweet spot to benefit from the strong supply of private residential units and hotel rooms in Singapore. Positive catalysts will come from strong overseas demand that could be of multiple times that of Singapore..
With a dividend yield in excess of 5%, PER of just 4x and strong balance sheet - net cash of $42m, the stock is an appealing M&A target that offers deep value. We cut our earnings estimates for FY10 and FY11 by 15.6% and 19% respectively, factoring in slower-than-expected revenue recognition. Our target price thus falls to $0.90 pegged at 7.5x FY10 PER.
No comments:
Post a Comment