PCRT

PCRT: Phillip initiates at Accumulate, with TP $0.67, based on a 35% discount to RNAV. Notes PCRT’s key properties mainly lie in key economic and transportation hubs of Shenyang, Chengdu and Foshan, which GDP growth have been higher than the nation’s avg and 1st tier cities over the past 10 yrs. Believes PCRT should ride on China’s long term consumption and urbanization trend. Likes that all of PCRT’s 6 key properties are easily accessible by operational and planned subway lines, which is conducive to bringing in and seizing shopper traffic. Adds, PCRT has negotiated an earn out Deed which fully covers the committed distribution of Rmb 227m for FY13-14, which translates to a div yield of above 6% in the next two yrs.