GLP

GLP: ($2.99) Cresting the e-commerce wave in China According to consultant Bain & Co, Chinese shoppers spent a whopping ~US$213b online in 2012, just trailing behind their US counterparts who made ~US$225b worth of purchases. If the Chinese internet consumer market continues its blistering 71% average annual growth since 2009 (about five times faster than the US), China can be expected to overtake the US as the global leader in e-commerce once the 2013 industry statistics are published early next year. Such stellar industry growth will inevitably have a knock-on effect on GLP. The e-commerce operators are scrambling to rapidly expand their distribution network and capability, leading to a scarcity of the high-end, modern logistics facilities that GLP develops and operates across the key cities in China. In fact, in the recent months, Market Insights has posted numerous updates on GLP’s new lease signings, reflecting the strong market demand. GLP’s high quality customer base boasts e-commerce giants such as Amazon, Tencent and Vipshop, to name a few. GLP remains a key constituent in Market Insights model Growth portfolio. The counter is up 1.0% at $2.99 today, and trades at a 9% discount to consensus RNAV of $3.30.