SG Strategy

SG Strategy: Credit Suisse has SG Strategy report. Note that appreciation of the S$ vs US$ has raised concerns of price competitiveness of the tourism sector and pricing power for the sector is likely to remain strong given strong demand, high utilisation rates and limited incremental capacity……

Add that overall infrastructure constraint is not necessarily negative for the tourism sector since it would attract higher-value visitors and tourism receipts per visitor are projected to rise 14% to $1840, vs previous high of $1735 in 1993, with potential moderation in population and economic growth for SG to likely impact domestic demand growth over the medium term…..

prefers more externally driven sectors including tourism. Key picks include Genting Spore and CDLHT.

SG Property: Deutsche notes of signs of easing competition but foreign developers still active with Qingdao Construction the top bidder in recent Buangkok tender. With ample supply in pipeline and more uncertain outlook, developers likely to be more selective and could benefit developers with balance sheet capacity and have yet to restock eg. Allgreen, Wing Tai…..

Tip the worst of policy intervention to be over in 2H11 and coupled with a pickup in office rental growth, should help narrow NAV discounts which have widened beyond LT averages and reflect much of the uncertainty. Recommends Buy KepLand and CapitaLand.