All Green Properties

All Green Properties: Reported strong FY10 results which were in-line, with rev at $883.8m, +42%, while Core Net Profit at $165.2m was in-line with avg estimates at $173.1m. Strong overall performance due to an increase in rev from all segments, especially development properties, and a fair value gain of investment properties of $71.8m. Minus off fair value gains, Profit before Tax was higher 56.4%YoY....

In development ppty segment, higher rev was due to higher progressive sales recognised, with Phases 2A and 2B of Pavilion Park and The Cascadia obtaining their TOP in Jan, Jun and Nov10 respectively, while Cairnhill Residences obtained its CSC in Sept10....

For investment properties, all ppty registered an increase in rev, with higher contributions from Great World City Retail and Serviced Apartments, with both enjoying higher rental rates with high occupancies. Traders Hotel also registered a higher rev as compared to 2009. This was due to an increase in both occupancy and room rates....

Higher other operating income was mainly due to the exchange gains made from the US$ hedging contracts, while SG&A incurred were higher, due to higher show flat expenses as. Share of losses of associated companies was higher in 2010 due to higher preliminary and operating expenses incurred by vs overseas investments in China....

Going forward, grp tips transactions for 1Q11 to likely drop, given recent govt cooling measures, but note of genuine demand for housing and current prices should hold up well. At current price, valuations appears compelling, with grp trading at 0.62xP/B, vs simple peer average of 1xPB, while Gearing was reduced significantly to 0.18x, vs 0.36x YoY, leaving headroom for further expansion. Grp has proposed a first and final div of 5c/share….

Morgan Stanley maintains buy with $1.48 TP, UBS retain Neutral with $1.15 TP tipping a strong finish to the yr, lack of catalyst, given the policy overhang. Macquarie maintains OutPerform with $1.44 TP citing deep value, trading at 37% discount to book of $1.62 and a 43% discount to revised RNAV of $1.80. DB maintains Hold with $1.12 TP.