GLP

GLP: Reported 3Q11 results, which were broadly in-line, with Rev at US$125.2m, +12.9% YoY and +10.5%QoQ, while Net Profit was at US$82.1m (US$11.8m attributed to revaluation gains) vs a Net Loss of US$305mYoY and -9%QoQ. Minus revalution gains, EBIT at US$102m, +61.3%YoY…..

Grp’s top line growth was due primarily to completion and stabilisation of GLP’s development projects in China, while Rev derived from Japan operations was primarily driven by the strengthening of the Yen against the USD. Increase in the completed GFA and higher lease ratio of China’s portfolio also contributed to top line….

In local currency terms, EBIT excluding revaluation increased 16% in Japan and 92% in China YoY. Grp continues to see strong demand in China and enjoy a stable portfolio in Jap, with China seeing demand for an average of 103,300 sqm of new and expansion leased area/mth for 9M11, while stabilised lease ratio for Japan over this period remains at 99%....

Result brings 9M11 results to US$349.4m, +13.8%YoY, while Net Profit at US$673.6m vs a Net Loss of US$-291.5m YoY. Excluding revaluation gains, Net Profit was at US$219.2m, +74.2%YoY. We note that at current price, valuations are compelling, with grp trading at 1.05x PB, with Net Gearing at a comfortable 26.2%. vs peers Hang Lung Grp, with a 1.35x PB and CMA at 1.28x PB. DBSV maintains Buy with $1.65 TP.