GuocoLand

GuocoLand: Deutsche released GuocoLand company visit note after meeting up with company management recently. Management mentioned that the =various integrated development properties, including Tanjong Pagar Centre in SG and 2 Guoson Centres in China, are currently on track for their completion in the next 12-18 months. These, together with continuous residential sales across the markets, should see better earnings growth going forward.

Singapore is a key focus market for the group with the office and retail portion of Tanjong Pagar Centre to be ready by mid next year. On the resident side, management is in no rush to cut prices further as only 20 units were left at Goodwood Residence with prices recovering slightly to S$2400 psf. For Leedon Residence, the group will be more aggressive in marketing with target ASP for whole project at S$1900 psf.

Management indicated that the title for Guosen Centre Beijing has been received post the court ruling in Sep 2014 and group is currently redoing their feasibility study on the project to update the product offering.

Lastly, management is comfortable with current gearing of 150%, citing c.50% debt is project level funding. GuocoLand is currently trading at 0.8 P/B and 21x consensus FY15 P/E, vs sector average of 0.96x P/B and 27x FY15 P/E.