Amara

Amara: DBSV starts with TP $0.75 (based on 30% discount to RNAV, implying 18x EV/EBITDA inline with hospitality peers) and low risk rating. Notes the household hotel brand in Singapore has regional ambitions. The completion of 100AM (fomerly Amara Corporate Tower) will contribute positively to cash flows in 2013 while its regional hotel invmts in Shanghai and Bangkok will display a steady growth profile when operational in 2014/15. Further, the group intends to grow its hotel business in Myanmar through a JV with Youth Force Hotel Co, and Youth Force Construction , to develop and operate a hotel in Dagon Township, Yangon, with capital of US$50m. Discussions are still preliminary, but the house notes further clarity on the Myanmar MOU would be a catalyst to spark interest in the stock. The counter is +4% at $0.645.