Friday, December 10, 2010
CCT: HSBC initiates at Underweight with TP $1.47. Rollover of higher-than-mkt rentals are likely to rollover in nxt 2-3 yrs capping DPU growth. Invt demand to drive capital appreciation, to favour developers as cleaner way to play this over CCT. Possible upside risk from Mkt Str Car Park redev, but permissions from authorities not sought yet. Current yield of CCT at 5.1%. Valuations by HSBC are on high side with CCT currently at 1.05x P/B, higher than historical avg 0.86x P/B.