Ho Bee

Ho Bee: CIMB upgrades to Neutral from Underperform on valuation, noting it trades at 0.5x P/B vs its 0.9x historical average but cuts its target price to $1.20 from $1.28 despite less-bearish average-selling-price forecasts. It expects the sale of new Sentosa Cove units to remain slow with developers unwilling to cut prices and foreigners staying out of the market and on growing local interest in cheaper resale units. House notes management plans to put off launching the Pinnacle until its Seascape inventory clears and sees a likely shift in focus towards the monetization of the China landbank. China could be a re-rating catalyst if launch timings coincide with policy loosening, as the group China exposure is now almost on par with its Sentosa projects. CIMB also sees scope for share buybacks, with the company's mandate to buy back up to 10% of its shares, without undertaking any purchases year-to-date. Majority of houses still have a hold rating on the stock.