GLP

GLP: Nomura upgrades to Buy from neutral, raises TP to $3.10 (from $2.84). Notes GLP has underperformed the broader SG market ytd, possibily due to: 1) the market’s perception with respect to the China deal, 2) a weaker-than-expected CNY/USD, and 3) a weaker than expected operating margin in FY14 Nevertheless, Nomura believes the mkt view is too bearish, especially as one of the key rationales for bringing in the Chinese partners is to strengthen GLP’s land acquisition capability to accelerate future growth. Current share price implies development starts of only 2m sqm (US$1.4b) in China in FY16e, compared to mgt’s announced FY15e target of 3.3m sqm (US$1.7b), implying an improved risk-reward proposition at current valuation.