CDL

CDL: Nomura reiterates its BUY rating and raised its TP to $12.04 (from $11.50), after raising its valuation for CDL's prime luxury hotels in Singapore. This follows the Profit Participating Deal (PPS) deal with Blackstone and CIMB on 16 Dec 2014, where house estimates that the deal offers a best case scenario of +$0.32/share to NAV and worst case scenario of loss of $0.06/share. House thinks it is premature to conclude if the PPS structure could be replicated for other developments such as South Beach, but the deal showcases CDL's capability in product/platform innovation. This could imply more deals may be in the works to monetise assets which could in turn narrow the discount to NAV.