Strategy: BlackRock, the largest asset manager in the world, opines that Chinese property stocks are now a “Buy” following the easing of cooling measures, reduced inventory and lower funding costs. Moreover, valuations are undemanding with some property counters trading at 50-70% discount to their book values.
The asset manager added that it has been increasing its exposure in the property sector. Other sectors that the fund is interested in are the insurance and healthcare sectors.
For 3Q, BlackRock’s BGF China Fund outperformed the MSCI China benchmark, registering a flat performance versus a 5% decline in the benchmark index.
Ultimately, BlackRock believes that “opportunity comes from low expectations”, and that the very sceptical market is precisely why the house is excited about Chinese equities.
Tuesday, October 20, 2015
SG Market (20 Oct 15)
Singapore shares are likely to struggle after Wall Street ended a range bound session with slight gains and as investors remained cautious ahead of key results releases from Keppel Corp and Sembcop marine this Thu.
Regional bourses are trading mixed today, down in Sydney (-0.5%) and Seoul (-0.1%) but higher in Tokyo (+0.5%).
From a chart perspective, overbought indicators suggest that upside for the STI will be capped at 3,050 with near-term support at 2,980.
Stocks to watch:
*Strategy: BlackRock opines that Chinese property stocks are now a “Buy” following the easing of cooling measures, reduced inventory and lower funding costs. Moreover, valuations are undemanding with some property counters trading at 50-70% discount to their book values.
*M1: 3Q15 results slightly missed estimates. Net profit inched up 0.8% y/y to $44.9m on stronger revenue of $277.6m (+11%), driven by soaring handset sales (+68.8%) and higher fixed services (+20.6%), but partially weighed by the mobile (-0.8%) and international call services (-22.1%). Operationally, ARPU for postpaid (-1%), prepaid (-7%) and data (-7.7%) fell, while data usage grew to 3.3GB/month (+0.4GB). Operating margin narrowed 2.3ppt to 19.7% amid a surge in handset cost. NAV/share at $0.394.
*Mapletree Logistics Trust: 2QFY16 results in line as DPU slipped 1.1% y/y to 1.86¢ in tandem with a 0.3% dip in distributable income. Gross revenue and NPI grew 6.5% and 7.3% to $87.5m and $73m respectively on contributions from five new acquisitions as well as higher revenue from existing HK assets further boosted by a stronger HKD. Bottom-line weighed by a 30.9% surge in borrowing costs to $10.5m as well as $11.7m in FX losses (2QFY14 profit of $4.2m). Portfolio occupancy improved 0.3ppt q/q to 96.9%, with WALE of 4.8 years. Aggregate leverage stood at 38.8% with average debt tenor of 3.4 years. NAV/unit at $1.02.
*Keppel Infrastructure Trust: 2QFY16 DPU of 0.93¢ missed expectations following the merger of Crystal Trust and CitySpring despite turning up a net profit of $4.1m (2QFY15 net loss of $1.6m). Revenue jumped 20.3% y/y to $152.9m on the contributions of newly acquired assets from Crystal Trust of $16.7m and KMC of $32.6m, partially pared by a 20.8% drop in City Gas revenue to $78.3m as well as a 5% decline in Basslink’s revenue to $14.8m. Leverage was reduced to 32% (-5ppt) from equity fund raising for the KMC acquisition. NAV/unit at $0.36.
*Keppel REIT: 3Q15 results met forecasts even as DPU declined 8.1% y/y to 1.7¢ due to dilution from a share placement as distributable income grew 4.6% to $54.4m. Revenue and NPI fell 11.4% and 13.3% to $42.2m and $33.4m respectively, weighed by absence of income from the divested Prudential Tower, partially offset by higher contributions from Ocean Financial Centre and Bugis Junction Towers. Portfolio occupancy dipped slightly to 98.5% (-0.8ppt) with WALE of 6 years, while aggregate leverage was stable at 42.6% with average cost of debt of 2.5%. NAV/unit at $1.37.
*Oxley: 1QFY6 net profit spiked to $35.1m (+246% y/y), as revenue surged to $433.9m (+261%), mainly driven by full revenue recognition of industrial property Eco-tech @ Sunview after TOP was received, as well as revenue from sold units across seven mixed-residential projects in Singapore. NAV/share at $0.18.
*Triyards: 4QFY15 net profit of US$8.4m (+59% y/y) brought FY15 net profit to US$27.2m (+2%), 5% above street estimates. For the quarter, revenue surged 81% to US$88.4m due mainly to new revenue contribution from four self-elevating units, and partly from recently-acquired Strategic Marine. Meanwhile, bottom line was dragged by lower gross margin of 21.8% (-5.3ppt) due to the change in sales mix. Proposed DPS of 1¢ maintained. NAV/share at US$0.6432.
*Lian Beng: 80% subsidiary, Goldprime is acquiring a 1,803.6sqm freehold three storey residential complex, comprising 19 separately titled apartments, located at Unit 1 to 19 of 596 St Kilda Road, Melbourne, Australia. Total consideration for the 19 separate sellers sums up to A$24.35m, and will be funded via a mix of internal funds and bank borrowings.
*Soilbuild Construction: Bagged its second civil works project worth $19.9m for the construction of lift shafts to existing pedestrian overhead bridges. The project is scheduled to start in Oct '15 and completed by end Nov '17.
*Nordic Group: New orders totalling $4.1m to supply and install valve remote control systems, tank gauging systems and anti-heeling systems, as well as the provision of labour and materials to perform piping insulation work for Kraken FPSO Field Development Project. Contracted works expected to commence in Nov 15 and scheduled for completion by 2Q16.
*Tigerair: Will start operating two daily flights to Guangzhou China together with Scoot on 16 Jan ‘16.
*Croesus Retail Trust: Declined an offer from Sojitz for the acquisition of Forecast Kyoto Kawaramachi, located in Kyoto Japan, as the property is not yield accretive for the trust at the proposed consideration amount. The offer was made pursuant to an agreement which grants the trust rights of first refusal over the property.
*Guocoland: Expects to record a gain of RM116m from an associate's sale of 679.2 ha of land in Sepang, Malaysia for RM475m.
*iFAST: Awarded a qualification from Chinese authorities to run an investment funds platform in China.
Regional bourses are trading mixed today, down in Sydney (-0.5%) and Seoul (-0.1%) but higher in Tokyo (+0.5%).
From a chart perspective, overbought indicators suggest that upside for the STI will be capped at 3,050 with near-term support at 2,980.
Stocks to watch:
*Strategy: BlackRock opines that Chinese property stocks are now a “Buy” following the easing of cooling measures, reduced inventory and lower funding costs. Moreover, valuations are undemanding with some property counters trading at 50-70% discount to their book values.
*M1: 3Q15 results slightly missed estimates. Net profit inched up 0.8% y/y to $44.9m on stronger revenue of $277.6m (+11%), driven by soaring handset sales (+68.8%) and higher fixed services (+20.6%), but partially weighed by the mobile (-0.8%) and international call services (-22.1%). Operationally, ARPU for postpaid (-1%), prepaid (-7%) and data (-7.7%) fell, while data usage grew to 3.3GB/month (+0.4GB). Operating margin narrowed 2.3ppt to 19.7% amid a surge in handset cost. NAV/share at $0.394.
*Mapletree Logistics Trust: 2QFY16 results in line as DPU slipped 1.1% y/y to 1.86¢ in tandem with a 0.3% dip in distributable income. Gross revenue and NPI grew 6.5% and 7.3% to $87.5m and $73m respectively on contributions from five new acquisitions as well as higher revenue from existing HK assets further boosted by a stronger HKD. Bottom-line weighed by a 30.9% surge in borrowing costs to $10.5m as well as $11.7m in FX losses (2QFY14 profit of $4.2m). Portfolio occupancy improved 0.3ppt q/q to 96.9%, with WALE of 4.8 years. Aggregate leverage stood at 38.8% with average debt tenor of 3.4 years. NAV/unit at $1.02.
*Keppel Infrastructure Trust: 2QFY16 DPU of 0.93¢ missed expectations following the merger of Crystal Trust and CitySpring despite turning up a net profit of $4.1m (2QFY15 net loss of $1.6m). Revenue jumped 20.3% y/y to $152.9m on the contributions of newly acquired assets from Crystal Trust of $16.7m and KMC of $32.6m, partially pared by a 20.8% drop in City Gas revenue to $78.3m as well as a 5% decline in Basslink’s revenue to $14.8m. Leverage was reduced to 32% (-5ppt) from equity fund raising for the KMC acquisition. NAV/unit at $0.36.
*Keppel REIT: 3Q15 results met forecasts even as DPU declined 8.1% y/y to 1.7¢ due to dilution from a share placement as distributable income grew 4.6% to $54.4m. Revenue and NPI fell 11.4% and 13.3% to $42.2m and $33.4m respectively, weighed by absence of income from the divested Prudential Tower, partially offset by higher contributions from Ocean Financial Centre and Bugis Junction Towers. Portfolio occupancy dipped slightly to 98.5% (-0.8ppt) with WALE of 6 years, while aggregate leverage was stable at 42.6% with average cost of debt of 2.5%. NAV/unit at $1.37.
*Oxley: 1QFY6 net profit spiked to $35.1m (+246% y/y), as revenue surged to $433.9m (+261%), mainly driven by full revenue recognition of industrial property Eco-tech @ Sunview after TOP was received, as well as revenue from sold units across seven mixed-residential projects in Singapore. NAV/share at $0.18.
*Triyards: 4QFY15 net profit of US$8.4m (+59% y/y) brought FY15 net profit to US$27.2m (+2%), 5% above street estimates. For the quarter, revenue surged 81% to US$88.4m due mainly to new revenue contribution from four self-elevating units, and partly from recently-acquired Strategic Marine. Meanwhile, bottom line was dragged by lower gross margin of 21.8% (-5.3ppt) due to the change in sales mix. Proposed DPS of 1¢ maintained. NAV/share at US$0.6432.
*Lian Beng: 80% subsidiary, Goldprime is acquiring a 1,803.6sqm freehold three storey residential complex, comprising 19 separately titled apartments, located at Unit 1 to 19 of 596 St Kilda Road, Melbourne, Australia. Total consideration for the 19 separate sellers sums up to A$24.35m, and will be funded via a mix of internal funds and bank borrowings.
*Soilbuild Construction: Bagged its second civil works project worth $19.9m for the construction of lift shafts to existing pedestrian overhead bridges. The project is scheduled to start in Oct '15 and completed by end Nov '17.
*Nordic Group: New orders totalling $4.1m to supply and install valve remote control systems, tank gauging systems and anti-heeling systems, as well as the provision of labour and materials to perform piping insulation work for Kraken FPSO Field Development Project. Contracted works expected to commence in Nov 15 and scheduled for completion by 2Q16.
*Tigerair: Will start operating two daily flights to Guangzhou China together with Scoot on 16 Jan ‘16.
*Croesus Retail Trust: Declined an offer from Sojitz for the acquisition of Forecast Kyoto Kawaramachi, located in Kyoto Japan, as the property is not yield accretive for the trust at the proposed consideration amount. The offer was made pursuant to an agreement which grants the trust rights of first refusal over the property.
*Guocoland: Expects to record a gain of RM116m from an associate's sale of 679.2 ha of land in Sepang, Malaysia for RM475m.
*iFAST: Awarded a qualification from Chinese authorities to run an investment funds platform in China.
Monday, October 19, 2015
Noble
Noble: Winding down its copper & zinc trading business?
The Wall Street Journal reports that Noble is winding down its copper and zinc trading business amidst a global commodities rout to focus on its more profitable energy business.
Noble has been hit by selling pressure after a damning report by Iceberg Research surfaced in Feb. It is currently one of the top decliners on the Straits Times Index (STI) having lost more than half of its market capitalisation since the beginning of the year as the prices of metals its trades in decline.
The report mentioned that banks financing Noble have become increasingly nervous about their exposure to the group with some banks reportedly trying to sell parts of that exposure at a high discount.
Indeed, in a recent interview, chief executive Yusuf Alireza was quoted as saying that the group would be relocating capital from metals to energy. It would thus seem that the scalpel has been put to use on the poor performing copper and zinc business.
Both metals are currently in a bearish market with the YTD spot prices of copper having lost about 16.7% to US$5,303.50/MT and zinc declining 18% to US$1,777.25/MT.
In its most recent financial report, Noble posted a US$50m 2Q15 loss in its mining and metals division. Back then, the group said that demand weakness weighed heavily on prices and premiums across both zinc and copper operations. The group opined that trading conditions would remain under pressure due to weak global demand.
Despite worries of credit drying up, Noble recently secured a borrowing facility worth US$1.1b from six key banks led by The Bank of Tokyo-Mitsubishi UFJ, and Societe Generale to fund its coal and petroleum businesses.
Noble is has recently rebounded from a 52-week low of $0.38 in late Sep and is currently trading at 5.8x forward P/E. In light of the sharp drop in its price, the street has 5 Buys, 7 Holds, a 1 Sell ratings on the counter with a consensus TP of $0.71.
The Wall Street Journal reports that Noble is winding down its copper and zinc trading business amidst a global commodities rout to focus on its more profitable energy business.
Noble has been hit by selling pressure after a damning report by Iceberg Research surfaced in Feb. It is currently one of the top decliners on the Straits Times Index (STI) having lost more than half of its market capitalisation since the beginning of the year as the prices of metals its trades in decline.
The report mentioned that banks financing Noble have become increasingly nervous about their exposure to the group with some banks reportedly trying to sell parts of that exposure at a high discount.
Indeed, in a recent interview, chief executive Yusuf Alireza was quoted as saying that the group would be relocating capital from metals to energy. It would thus seem that the scalpel has been put to use on the poor performing copper and zinc business.
Both metals are currently in a bearish market with the YTD spot prices of copper having lost about 16.7% to US$5,303.50/MT and zinc declining 18% to US$1,777.25/MT.
In its most recent financial report, Noble posted a US$50m 2Q15 loss in its mining and metals division. Back then, the group said that demand weakness weighed heavily on prices and premiums across both zinc and copper operations. The group opined that trading conditions would remain under pressure due to weak global demand.
Despite worries of credit drying up, Noble recently secured a borrowing facility worth US$1.1b from six key banks led by The Bank of Tokyo-Mitsubishi UFJ, and Societe Generale to fund its coal and petroleum businesses.
Noble is has recently rebounded from a 52-week low of $0.38 in late Sep and is currently trading at 5.8x forward P/E. In light of the sharp drop in its price, the street has 5 Buys, 7 Holds, a 1 Sell ratings on the counter with a consensus TP of $0.71.
IHH Healthcare
IHH Healthcare: (S$2.14) Lauded for its expansion drive and solid fundamentals
IHH Healthcare has been rated as conviction Buy by a foreign broker, citing its solid growth trajectory, well-diversified core markets, wide-margin focus, inelastic demand, robust balance sheet and strong management team.
The group’s core markets, Malaysia, Singapore and Turkey, are expected to grow on upcoming greenfield and brownfield expansion, with revenue upside arising from a 32% increase in beds by 2017, and margins to widen on rising operating leverage from maturing hospitals, as well as favourable FX.
On top of that, the healthcare player is also looking to add India and China to its home market list. The group’s acquisition of two premium-focused (Continental & Global) hospitals in India for RM1b earlier this year has increased its operating beds to 1,800 in the country, and it has room to increase capacity to 4,000 within existing facilities.
IHH recently announced a JV with Chinese partner, Broad Ocean to operate a 350-bed tertiary hospital in Chengdu, signalling its commitment to expand in China. In addition, its Gleneagles Hong Kong hospital is currently under construction and it is looking to ink an investment in Shanghai before the end of 2015.
Meanwhile, operations for the group’s 11 clinics in the mainland remain robust, with an estimated run rate of Rmb600m in 2015 and more than 30% EBITDA margin
Strong growth aside, IHH has a healthy balance sheet given its low leverage, with less than 2x net debt/EBITDA, and thereby provides much ammunition for the group to capitalise on faltering asset prices in the region.
IHH also has a well-balanced board, experienced management team and the most transparent staff-incentive scheme among Malaysian corporates.
While the group is vastly diversified across countries in Asia, the healthcare stock is undeservingly trading on par (25.6x FY15e EV/EBITDA) with smaller and less diversified peers from India and Thailand.
As such, the house continues to place a conviction Buy and a TP of RM7.80 ($2.57) on the counter.
IHH Healthcare has been rated as conviction Buy by a foreign broker, citing its solid growth trajectory, well-diversified core markets, wide-margin focus, inelastic demand, robust balance sheet and strong management team.
The group’s core markets, Malaysia, Singapore and Turkey, are expected to grow on upcoming greenfield and brownfield expansion, with revenue upside arising from a 32% increase in beds by 2017, and margins to widen on rising operating leverage from maturing hospitals, as well as favourable FX.
On top of that, the healthcare player is also looking to add India and China to its home market list. The group’s acquisition of two premium-focused (Continental & Global) hospitals in India for RM1b earlier this year has increased its operating beds to 1,800 in the country, and it has room to increase capacity to 4,000 within existing facilities.
IHH recently announced a JV with Chinese partner, Broad Ocean to operate a 350-bed tertiary hospital in Chengdu, signalling its commitment to expand in China. In addition, its Gleneagles Hong Kong hospital is currently under construction and it is looking to ink an investment in Shanghai before the end of 2015.
Meanwhile, operations for the group’s 11 clinics in the mainland remain robust, with an estimated run rate of Rmb600m in 2015 and more than 30% EBITDA margin
Strong growth aside, IHH has a healthy balance sheet given its low leverage, with less than 2x net debt/EBITDA, and thereby provides much ammunition for the group to capitalise on faltering asset prices in the region.
IHH also has a well-balanced board, experienced management team and the most transparent staff-incentive scheme among Malaysian corporates.
While the group is vastly diversified across countries in Asia, the healthcare stock is undeservingly trading on par (25.6x FY15e EV/EBITDA) with smaller and less diversified peers from India and Thailand.
As such, the house continues to place a conviction Buy and a TP of RM7.80 ($2.57) on the counter.
Bumitama Agri
Bumitama Agri: Earnings preview: Guiding for a 19% profit slump in 3Q on lower ASPs
Maybank-KE expects the CPO producer to report a 19% y/y slump in 3Q15 net profit to Rp238b largely due to lower CPO average selling prices (ASP).
That would bring 9M15 earnings to Rp661b, meeting about 71% of the house’s forecast, but only 61% of consensus expectations.
The house notes that the poor 3Q15 results would largely be due to lower CPO ASP of Rp6,770/kg (-17%) as punitive export levies of US$50/ton has been put in force by the Indonesian government since 15 Jul.
This could however be slightly mitigated by higher FFB output. In 3Q15, Bumitama's CPO production hit an all time high of 181,975 MT (+20.8%) fuelled by a 20% jump in FFB harvest.
In addition, the group could could face heightening unrealised FX losses on its USD debt (~Rp4t equivalent) exposure as the IDR has fallen about 10% against the USD during the quarter.
The research house notes that the El Nino weather pattern is casting doubt over Bumitama’s near-term prospects even though CPO output traditionally peaks in 4Q. Despite output possibly missing expectations, the resulting upward pressure on CPO prices could compensate for the supply drag.
Since its low of $0.70 achieved in late Aug, the counter has rallied 17.9% and is about 2.9% away from its TP of $0.85. Given the limited upside catalysts, the house has thus downgraded Bumitama Agri to Hold from Buy.
Aside to Maybank-KE’s update, the street has 8 Buys and 1 Sell ratings on the counter with a consensus TP of $1.17.
Maybank-KE expects the CPO producer to report a 19% y/y slump in 3Q15 net profit to Rp238b largely due to lower CPO average selling prices (ASP).
That would bring 9M15 earnings to Rp661b, meeting about 71% of the house’s forecast, but only 61% of consensus expectations.
The house notes that the poor 3Q15 results would largely be due to lower CPO ASP of Rp6,770/kg (-17%) as punitive export levies of US$50/ton has been put in force by the Indonesian government since 15 Jul.
This could however be slightly mitigated by higher FFB output. In 3Q15, Bumitama's CPO production hit an all time high of 181,975 MT (+20.8%) fuelled by a 20% jump in FFB harvest.
In addition, the group could could face heightening unrealised FX losses on its USD debt (~Rp4t equivalent) exposure as the IDR has fallen about 10% against the USD during the quarter.
The research house notes that the El Nino weather pattern is casting doubt over Bumitama’s near-term prospects even though CPO output traditionally peaks in 4Q. Despite output possibly missing expectations, the resulting upward pressure on CPO prices could compensate for the supply drag.
Since its low of $0.70 achieved in late Aug, the counter has rallied 17.9% and is about 2.9% away from its TP of $0.85. Given the limited upside catalysts, the house has thus downgraded Bumitama Agri to Hold from Buy.
Aside to Maybank-KE’s update, the street has 8 Buys and 1 Sell ratings on the counter with a consensus TP of $1.17.
GuocoLeisure
GuocoLeisure’s 1QFY16 net profit soared 89.2% y/y to US$31.4m mainly due to a one-off US$13.1m compensation for termination of the Thistle Hotels management contract.
However, revenue dipped 2% to US$115.1m as lower crude oil and gas prices, fall in oil production at Bass Straits, coupled with the weakening AUD against USD, hit its royalty income, which declined 50% to US$6.5m.
Gaming revenue turned around with positive takings of US$2.6m on better gaming drop and win margin, while hotel revenue of US$105.4m (+0.3%) was stable as improved RevPar (+11%) was offset by the weakening of the GBP against the USD.
Overall gross margin was flat at 59.8% (-0.4ppt) as higher gaming duty charges from the increase in gaming revenue that was offset by a weaker GBP.
Bottom line was buttressed by lower financing costs of US$3.2m (-61.4%) as the group had refinanced its mortgage loans with a term loan in Dec ‘14, and the compensation received after the termination of a management contract for 19 Thistle hotels owned by a third party.
While occupancy for the London hotel market is not expected to change significantly, the group cautions that the stronger USD will pressure top line contributions and the planned refurbishments of its hotels could affect its inventory of available rooms before completion by Jun '16. Nonetheless, the group expects to launch its second Amba hotel in 4Q15.
In relation to its oil and gas business, management opines that prices are unlikely to recover in 2016 and will thus continue to be a drag on its royalty income.
The counter is currently trading at 12.3x trailing P/E and 0.7x P/B. The street is bullish on the counter with 3 Buy ratings and a consensus TP of $1.30.
However, revenue dipped 2% to US$115.1m as lower crude oil and gas prices, fall in oil production at Bass Straits, coupled with the weakening AUD against USD, hit its royalty income, which declined 50% to US$6.5m.
Gaming revenue turned around with positive takings of US$2.6m on better gaming drop and win margin, while hotel revenue of US$105.4m (+0.3%) was stable as improved RevPar (+11%) was offset by the weakening of the GBP against the USD.
Overall gross margin was flat at 59.8% (-0.4ppt) as higher gaming duty charges from the increase in gaming revenue that was offset by a weaker GBP.
Bottom line was buttressed by lower financing costs of US$3.2m (-61.4%) as the group had refinanced its mortgage loans with a term loan in Dec ‘14, and the compensation received after the termination of a management contract for 19 Thistle hotels owned by a third party.
While occupancy for the London hotel market is not expected to change significantly, the group cautions that the stronger USD will pressure top line contributions and the planned refurbishments of its hotels could affect its inventory of available rooms before completion by Jun '16. Nonetheless, the group expects to launch its second Amba hotel in 4Q15.
In relation to its oil and gas business, management opines that prices are unlikely to recover in 2016 and will thus continue to be a drag on its royalty income.
The counter is currently trading at 12.3x trailing P/E and 0.7x P/B. The street is bullish on the counter with 3 Buy ratings and a consensus TP of $1.30.
GuocoLand
GuocoLand: Got off to an impressive start for FY16, with first quarter net profit of $550.5m (1QFY15: $27m), while revenue gained 97% y/y to $439.8m.
The top line growth came from higher sales at Leedon Residence in Singapore and profit recognition for a 33,297 sqm gfa office block in Shanghai Guoson Centre.
From the change in sales mix, gross margin improved to 32.7% (+2.8ppt).
Meanwhile, the bottom line was boosted significantly by a $480m disposal gain from the sale of Beijing's Dongzhimen project in Aug '15.
From the sale proceeds of the integrated development in China, GuocoLand pared down its debt and net gearing improved drastically from 157% in Jun '15 to 65%.
On the outlook, GuocoLand's key operating markets- Singapore, Malaysia and China, continues to remain challenging, mainly on the government cooling measures, jittery economic sentiments and oversupply.
At the current price, GuocoLand is trading at a 37% discount to its NAV of $3.03/share.
The top line growth came from higher sales at Leedon Residence in Singapore and profit recognition for a 33,297 sqm gfa office block in Shanghai Guoson Centre.
From the change in sales mix, gross margin improved to 32.7% (+2.8ppt).
Meanwhile, the bottom line was boosted significantly by a $480m disposal gain from the sale of Beijing's Dongzhimen project in Aug '15.
From the sale proceeds of the integrated development in China, GuocoLand pared down its debt and net gearing improved drastically from 157% in Jun '15 to 65%.
On the outlook, GuocoLand's key operating markets- Singapore, Malaysia and China, continues to remain challenging, mainly on the government cooling measures, jittery economic sentiments and oversupply.
At the current price, GuocoLand is trading at a 37% discount to its NAV of $3.03/share.
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