UOB: HSBC keeps at Overweight, but lowers TP to $23.15 from $25.50. Says valuations look better now, after share price has fallen 15% from its peak on 1 Aug, wiping all its performance ytd. Notes the stock now trades at the bottom end of its trading range since end ’09, and is below its 15yr avg 1.5x P/B. Adds, further downside should be supported by a 3.8% FY12E div yield. Its FY12-13 EPS forecasts are 6-8% below consensus.
Believes the bank’s asset quality, liquidity and capital strength will stand it in good stead during uncertain macro conditions. Says, mgt also has a proven track record of steering the bank through past crises.
Thursday, September 1, 2011
GLP
GLP: forms 50/50 JV with Canada Pension Plan Invmt Board (CPPIB) to develop and hold institutional quality, modern logistics facilities. Each partner will invest US$250m of equity over a projected 3yr invmt horizon. The Fund is open-ended, with a targeted leverage of 50% loan-to-value (after stabilization).
The Japan Devt Fund will focus on building multi-tenant and build-to-suit facilities mainly in the greater Tokyo and Osaka areas in Japan. A site in Tokyo has been identified as the first potential devt for the Fund.
GLP notes that modern logistics facilities in Japan are scarce. Of the 480m sm of total logistics facilities, only 9.2m sm (or 1.9%) of that are modern logistics facilities.
Stock trades at 0.94x P/B. The majority of Street has Buy ratings with recent TP ranging btwn $2.50-2.80. Its shares end up 1.8% at $1.67 Wednesday, and have fallen 22.6% ytd amid worries over slowing growth in China, where it is also growing its portfolio.
The Japan Devt Fund will focus on building multi-tenant and build-to-suit facilities mainly in the greater Tokyo and Osaka areas in Japan. A site in Tokyo has been identified as the first potential devt for the Fund.
GLP notes that modern logistics facilities in Japan are scarce. Of the 480m sm of total logistics facilities, only 9.2m sm (or 1.9%) of that are modern logistics facilities.
Stock trades at 0.94x P/B. The majority of Street has Buy ratings with recent TP ranging btwn $2.50-2.80. Its shares end up 1.8% at $1.67 Wednesday, and have fallen 22.6% ytd amid worries over slowing growth in China, where it is also growing its portfolio.
Utd Enviro Tech
Utd Enviro Tech: Annouced that it has boost its China presence with 40% stake in Maxrise Envirogroup for Rmb100m. Maxrise holds equity interests in 4 wastewater treatment plants with capacity of 170,000 m3/day. Acquisition presents opportunities for Group to expand its portfolio of water treatment plants and to establish presence in new geographical regions in China.
Assuming that the acquisition was completed on Grp’s financial year end 31 March FY11, the NTA per share for FY2011 will stand at 29.45c vs 29.15c registered before the acquisition.
Assuming that the acquisition was completed on Grp’s financial year end 31 March FY11, the NTA per share for FY2011 will stand at 29.45c vs 29.15c registered before the acquisition.
Wilmar
Wilmar: Announced that its sugar subsidiary Sucrogen has failed in its proposed purchase of Proserpine Co-operative Sugar Milling Association's assets for $147.8m. Prosperpine could have given a significant boost to Sucrogen's milling capacity by 2m tons to 17m tons and also raise Sucrogen's raw sugar production by 10% to 2.2m tons.
Sucrogen said that it was unable to secure the 'necessary level of support' from the cooperative sugar mill's members for the deal to go through. It managed to receive favourable votes from 70% of PCSMA members who voted, below the required 75%.
Sucrogen said that it was unable to secure the 'necessary level of support' from the cooperative sugar mill's members for the deal to go through. It managed to receive favourable votes from 70% of PCSMA members who voted, below the required 75%.
Olam
Olam: Announced that it has acquired Hemarus Industries sugar milling facility and related assets in India for US$73.8m. Mill has a 3.5k ton crush per day (TCD) capacity, and co will invest a further US$6.6m to raise this to 5k TCD.
Acquisition is in line with Co’s strategic objective of building an annual sugarcane crush capacity of 2.0-2.5m tons over the next 5 yrs, and is expected to be Ebitda accretive from the 1st yr and earnings accretive from the 2nd yr post consolidation. CEO highlights grp is also very keen to invest in the Brazilian sugar industry.
We note that Majority of street has Buy call on Co. with 17 Buys, 3 Holds and 1 Sell and a mean TP of $3.05. Recall that Co. yesterday announced FY11 results which was ahead of consensus and has guidance to achieve Net Profits of US$1b by 2016.
Acquisition is in line with Co’s strategic objective of building an annual sugarcane crush capacity of 2.0-2.5m tons over the next 5 yrs, and is expected to be Ebitda accretive from the 1st yr and earnings accretive from the 2nd yr post consolidation. CEO highlights grp is also very keen to invest in the Brazilian sugar industry.
We note that Majority of street has Buy call on Co. with 17 Buys, 3 Holds and 1 Sell and a mean TP of $3.05. Recall that Co. yesterday announced FY11 results which was ahead of consensus and has guidance to achieve Net Profits of US$1b by 2016.
SG Market
SG Market: Spore shares likely to edge higher following firmer close on Wall Street but STI likely to meet stiffer resistance at 2910 level. Global Logistic Properties may draw some interest after it says it has formed a US$500m joint venture with the Canada Pension Plan Investment Board to develop logistics facilities in Japan. In other corporate news, Olam buys Indian sugar milling plant for US$73.8m while Wilmar fails in bid to acquire Prospering Co-op Sugar Milling Assoc assets.
Wednesday, August 31, 2011
Comfort Delgro
Comfort Delgro: Deutsche maintains Buy with TP$1.70. Co is of view that the Downtown Line (DTL) is a critical milestone for co’s rail operations and compares the expected ridership no of 700k to NEL’s 420k. The DTL will add over 14k sqm of commercial space more than 4 times that of NEL which is expected to boost rev and profitability further.
House estimates that DTL would lift rev by approx 5% when fully operational as well as strengthen its positioning for future rail tenders. Mgmt has indicated that DTL’s breakeven could take longer than NEL’s 3 yrs and depress margins. However, asset-light model is viewed favourably which reduces co’s capex burden.
House estimates that DTL would lift rev by approx 5% when fully operational as well as strengthen its positioning for future rail tenders. Mgmt has indicated that DTL’s breakeven could take longer than NEL’s 3 yrs and depress margins. However, asset-light model is viewed favourably which reduces co’s capex burden.
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