Ying Li

Ying Li: UOB Kay Hian maintains buy with $0.65 TP, based on a 21.8% discount to RNAV. House hosted Ying Li in a series of investor meetings recently. Note that recent Sell-down unwarranted due to Ying Li’s limited exposure to residential properties, as the co’s current portfolio of developing properties comprises less than 15% in residential properties (mainly International Plaza, where more than 95% is sold in all the four phases). The financial impact of these new policies to Ying Li appears limited. Ying Li has plans to transfer its retail malls into a trust vehicle for listing to monetise the assets and recycle the capital. This is positive as the proceeds could be recycled into accretive new investments as mgt believes in the long-term growth prospect of Chongqing and sees opportunities to secure good land parcels for commercial property developments. RNAV surprises will come from Wuyi Rd project and San Ya Wan phase 2. House have yet to receive the breakdown in the type of properties in Wuyi Rd project from mgt. Overall, stock is currently trading at a 46% discount to its RNAV despite gaining 21.6% ytd. With the appointment of a new CEO, see potential new growth drivers. Share price catalysts include a potential spin-off of its retail properties into a REIT to recycle capital.