Courts Asia

Courts Asia: CIMB initiates Coverage with O/p call and $1.32 TP. House note that Courts‟ bad debt problems are a thing of the past. It still makes money from consumer financing, but it is more aware of the risks and has taken steps to control it. Today, it is proxy to a spurt of completed housing units in Singapore and store expansion across the region. House value Courts using a residual income model with 8% cost of equity and 1% terminal growth. TP implies 15x CY14 P/E, which is a 25%-discount to regional peers. House see catalysts from Singapore same-store-sales growth (SSSG) and regional store expansion