Capita Commertical Trust: Confirmed yesterday that it has obtained provisional permission for the redevelopment of Market Street Car Park, but stressed that it has not decided if it would embark on the project. CCT was responding to a BT report last Sat, which said that the REIT has received provisional permission in Nov last year to turn Market Street Car Park into an office tower…..
CCT said that its manager was evaluating the redevelopment and 'has not arrived at any decision at this point', and advises unitholders to exercise caution in trading CCT units as there is no certainty that the proposed project would materialize…
We note that Street has a mixture of Buy, Hold and Sell Calls on stock, with a Median TP of $1.57, vs current price of $1.43. At current levels, REIT trades at an estimated FY11 0.95x P/B yield of 5.1%.
Tuesday, February 1, 2011
RenewableEnergyAsia
RenewableEnergyAsia: Received go-ahead from the govt of Inner Mongolia, for the construction of a 10MW solar energy farm. Project is part of the 285MW Green Energy Park concession in Zhenglanqi, Inner Mongolia, secured by REA Group last May. In addition to the solar energy farm, co will develop a 250MW wind farm, and a 25MW bio-fuel plant in the Park in phases...
Total cost of invtment for the farm is estimated to be arnd Rmb190m and is to be completed within 5 yrs. Govt is planning to pump in some Rmb5t in invtments btwn 2011 and 2020, to promote the dev of its renewable energy industries. Recent wins have been wind farm projects (JV with China Datung) and this is its first solar farm contract, co has yet to turn a profit from prev results in Sept. Co reports semi-annually, with Mar results expected in May.
Total cost of invtment for the farm is estimated to be arnd Rmb190m and is to be completed within 5 yrs. Govt is planning to pump in some Rmb5t in invtments btwn 2011 and 2020, to promote the dev of its renewable energy industries. Recent wins have been wind farm projects (JV with China Datung) and this is its first solar farm contract, co has yet to turn a profit from prev results in Sept. Co reports semi-annually, with Mar results expected in May.
Yanlord
Yanlord: To set up 2 JVs with GIC's real estate affiliate Reco Yizhong in Tianjin, China. Both co.s have acquired a 364.5k sqm gfa prime resi dev site in Jinnan for Rmb1.16b, an avg of 3.2k per sqm in a land auction. There are existing govt initiatives to dev area into educational district to house over 200k students, 20 vocational institutes and Tianjin and Nankai universities...
Yanlord will own 60% in both JVs namely Tianjin Yanlord Beiyang with US$176m total registered capital and Tianjin Yanlord Xincheng with US$212 total reg capital. Site is 15km drive from airport and abt 15 min drive from city centre. Yanlord’s P/B is approx 1.24x compared to hist avg of 2.40x
Yanlord will own 60% in both JVs namely Tianjin Yanlord Beiyang with US$176m total registered capital and Tianjin Yanlord Xincheng with US$212 total reg capital. Site is 15km drive from airport and abt 15 min drive from city centre. Yanlord’s P/B is approx 1.24x compared to hist avg of 2.40x
WingTai
WingTai: 2QFY11 results largely in line with expectations. Revenue was at $197.8m, +13.0%yoy, +50.9%qoq and net profit was $53.9m, +142%yoy, +78.6%qoq. Increased rev was due to sales from Helios and Belle Vue Residences and profits improved due to contributions from JV and associates from the Floridian project in Singapore and Wing Tai Properties in HK…
Co mainly pared down short-term borrowings and reduced gearing from 0.44x to 0.31x from 30 June 2010. Co still has unsold units in 5 existing projects and 3 sites expected to launch within the yr, 2 in Ardmore and govt land site in Petri Road....
Macq rates Outperform TP$2.03 lowered from $2.14. Deutsche maintains Hold with TP$1.81. Both houses have remarked on the possibility of replenishing its landbank given low gearing at 0.31x and supply from GLS. Wing Tai currently trades at 0.77x P/B.
Co mainly pared down short-term borrowings and reduced gearing from 0.44x to 0.31x from 30 June 2010. Co still has unsold units in 5 existing projects and 3 sites expected to launch within the yr, 2 in Ardmore and govt land site in Petri Road....
Macq rates Outperform TP$2.03 lowered from $2.14. Deutsche maintains Hold with TP$1.81. Both houses have remarked on the possibility of replenishing its landbank given low gearing at 0.31x and supply from GLS. Wing Tai currently trades at 0.77x P/B.
NOL
NOL: Container shipper's latest operating data show another sequential decline in freight rates. Grp note that for seven weeks from Nov13-Dec31 (period 12), its average revenue/forty foot equivalent unit was US$2,647, +21% on-year but -5.4% from period 11 (October 16-November 12) when rates were US$2,797/FEU…..
Deutsche who has a sell call and $1.61 TP, note that ‘freight rates have resumed their downtrend after the carrier failed to hold up rate hikes imposed earlier this mth, and while house expect container activities to pick up starting in 2Q11, the peak newbuild deliveries in 2Q will continue to put pressure on rates…
Add that valuations at 1.3X P/B "looks stretched vs declining ROEs," and that stock has given back almost all of it's YTD gains, and last closed down 1.8% at $2.20, off 8.3% from its Jan peak of $2.40. Tips support at $2.16, YTD low, and $2.12, its 2-mth low….
Macquarie has Hold Call with $2.25 TP, while Morgan Stanley is OverWeight on stock
Deutsche who has a sell call and $1.61 TP, note that ‘freight rates have resumed their downtrend after the carrier failed to hold up rate hikes imposed earlier this mth, and while house expect container activities to pick up starting in 2Q11, the peak newbuild deliveries in 2Q will continue to put pressure on rates…
Add that valuations at 1.3X P/B "looks stretched vs declining ROEs," and that stock has given back almost all of it's YTD gains, and last closed down 1.8% at $2.20, off 8.3% from its Jan peak of $2.40. Tips support at $2.16, YTD low, and $2.12, its 2-mth low….
Macquarie has Hold Call with $2.25 TP, while Morgan Stanley is OverWeight on stock
United Envirotech
United Envirotech: Announced disappointing 3Q11results, with Rev at $12.8m, -31.8% YoY and -44.3%QoQ, while Net Profit at $4.1m was -20.8%YoY and -32.3%QoQ. Drop in quarterly performance due to lower engineering income in the current period, which contributed 57.8% of 3Q11 Rev, while recurring income arising from the Wastewater Treatment segment, increased substantially to $5.4m frm $3.6m, YoY....
Result brings 9M10 Rev to $58.2m, +49.6%, while Net Profit at $14.3m, +53.4% YoY, representing only 65% of consensus FY11 Net Profit forecasts. Going forward, grp remains optimistic as the Chinese govt maintains its commitment towards the country’s water pollution and scarcity problems,…
We note that at current levels, grp trades at an annualised14.2x FY11E PE, in-line with its historical average of 14.5x PE vs larger peers Sound Global of 16.7x and hyflux of 22.5x forward PE
Result brings 9M10 Rev to $58.2m, +49.6%, while Net Profit at $14.3m, +53.4% YoY, representing only 65% of consensus FY11 Net Profit forecasts. Going forward, grp remains optimistic as the Chinese govt maintains its commitment towards the country’s water pollution and scarcity problems,…
We note that at current levels, grp trades at an annualised14.2x FY11E PE, in-line with its historical average of 14.5x PE vs larger peers Sound Global of 16.7x and hyflux of 22.5x forward PE
SG Market
SG Market: Spore shares may rebound after yday's sharp fall as Wall Street's lift on Mon & a calmer situation in Egypt ease some concerns ahead of the shortened week. The STI closed at its 3180 support, which should hold for the time being & with a firmer opening on the Asian bourses, we might see a slight lift today to narrow the gap at 3211 but do not expect the resistance at 3230 to be breached.
NOL may be in focus after reporting another sequential decline in freight rates for the last period of 2010. Yanlord Land may also grab some attention after jointly acquiring a prime residential site in Tianjin for Rmb1.16b with GIC’s real estate unit. Wing Tai posted 2Q earnings that were in line but Mercator Lines reported 32% decline in 3Q earnings while United Environ 3Q results missed estimates.
Stock highlights:
* Wing Tai: no surprises in 2Q11 results. Net earnings of $53.9m, +142% yoy. Deutsche maintains at Hold with $1.81 target, Macquarie keeps at Outperform but lowers target to $2.03 from $2.14.
* United Envirotech: disappointing 3Q11 results. Revenue at $12.8m, -32% YoY, -44%QoQ. Net profit at $4.1m, -21% YoY, -32% QoQ.
* Genting HK: 50% owned NCL reports strong FY10 results. EBITDA at US$400m, +24% yoy. Net revenue increased to US$1.5b from US$1.3b, driven by +7.7% in net yield and +4% increase in capacity days.
* NOL: operating data for Period 12 (7wks to Dec ’10). Volumes stronger, +2% qoq, +8% on adjusted basis. But avg freight rates off 5% qoq due to seasonality. Remains Morgan Stanley’s top pick amongst container shipping stocks. Macquarie keeps at Neutral with $2.25 target.
* Banks: Dec loan growth +1.3% m-o-m to $322.7b, bringing full year loans growth to 14.7%.
UOB: DMG, HSBC top picks, expect underperformance in 2010 to reverse as NIMs bottom out.
DBS: Morgan Stanley’s top pick for an undervalued recovery.
OCBC: Nomura recommends for strong Asean presence, and broad integrated platform.
* Yanlord: and an affiliate of GIC Real Estate jointly acquire a 365k sm residential site in Tianjin Jinnan district for Rmb 1.16b, in a 60/40 JV.
* Renewable Energy: receives go-ahead from the govt of Inner Mongolia to construct a 10MW solar energy farm. If the feasibility study works out, the total est cost of invmt amounts to Rmb 190m.
NOL may be in focus after reporting another sequential decline in freight rates for the last period of 2010. Yanlord Land may also grab some attention after jointly acquiring a prime residential site in Tianjin for Rmb1.16b with GIC’s real estate unit. Wing Tai posted 2Q earnings that were in line but Mercator Lines reported 32% decline in 3Q earnings while United Environ 3Q results missed estimates.
Stock highlights:
* Wing Tai: no surprises in 2Q11 results. Net earnings of $53.9m, +142% yoy. Deutsche maintains at Hold with $1.81 target, Macquarie keeps at Outperform but lowers target to $2.03 from $2.14.
* United Envirotech: disappointing 3Q11 results. Revenue at $12.8m, -32% YoY, -44%QoQ. Net profit at $4.1m, -21% YoY, -32% QoQ.
* Genting HK: 50% owned NCL reports strong FY10 results. EBITDA at US$400m, +24% yoy. Net revenue increased to US$1.5b from US$1.3b, driven by +7.7% in net yield and +4% increase in capacity days.
* NOL: operating data for Period 12 (7wks to Dec ’10). Volumes stronger, +2% qoq, +8% on adjusted basis. But avg freight rates off 5% qoq due to seasonality. Remains Morgan Stanley’s top pick amongst container shipping stocks. Macquarie keeps at Neutral with $2.25 target.
* Banks: Dec loan growth +1.3% m-o-m to $322.7b, bringing full year loans growth to 14.7%.
UOB: DMG, HSBC top picks, expect underperformance in 2010 to reverse as NIMs bottom out.
DBS: Morgan Stanley’s top pick for an undervalued recovery.
OCBC: Nomura recommends for strong Asean presence, and broad integrated platform.
* Yanlord: and an affiliate of GIC Real Estate jointly acquire a 365k sm residential site in Tianjin Jinnan district for Rmb 1.16b, in a 60/40 JV.
* Renewable Energy: receives go-ahead from the govt of Inner Mongolia to construct a 10MW solar energy farm. If the feasibility study works out, the total est cost of invmt amounts to Rmb 190m.
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