Yanlord

Yanlord: CLSA upgrades to Underperform with $1.30 TP. House believe that tycoons’ recent investment in Yanlord’s shares support the company in two ways, short term performance of the shares as this is seen as smart money flow, and cashflow as Yanlord will need to refinance an expiring bond of SGD375m and if the tycoons like the shares they will likely also be interested investor in any new bond issuance by Yanlord.

However, the company’s fundamental remains weak and its 8.8x FY12CL PE valuation is not particularly attractive. House also believe that recent investments by the Tycoons, may not necessarily have an investment perspective or horizon that is aligned with typical equity investors, and are not able to make any sense of Peter Lim’s recent investments too as seen below.