Tuesday, February 19, 2013

MCT

MCT: Deutsche raises forecasts following a better-than-expected 3QFYMar13, lifts TP to $1.43 from $1.33, but downgrades to Hold on valuation grounds after the recent run up. While the house likes MCT’s sector-leading growth profile underpinned by strong operational momentum in VivoCity and positive reversions on its office portfolio, it believes this is well reflected in valuations (share price +16% post-placement). Adds, while its pipeline remains one of the deepest amongst peers, a near-term acquisition may not be imminent and the positive impact from the southern waterfront city will only be seen in the longer-term. MCT currently trades at 1.32x P/B, offering 4.7% FY13/14e yield, implying 311bps forward spread (LT avg of 498bps). Observes, valuations have caught up with larger commercial comps with CMT at 1.32x P/B and 4.6% FY13e and CCT at 1.0x P/B and 5.0% FY13e yield.

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