Company Name: GLOBAL LOGISTIC PROP LIMITED
Research House: Citigroup
Citigroup raises Global Logistic Properties (MC0.SG) target to $2.80 from $2.78, keeps at Buy.
Says strong fiscal 1H11 results helped by unique, policy-friendly business model, its China-Japan dual exposure.
Sets new target at par to estimated FY11E NAV/share, 1.53x FY11 P/B ratio. Says results generally in-line with expectations, strong growth in earnings mainly due to mid-teen increase in rental revenue together with good cost control.
Adds, acquisitions of logistics properties making good progress, low gearing to support further acquisitions; “current net gearing ratio will be approximately 16% based on the IPO proceeds, down from 33% right before IPO. We believe such a strong balance sheet should be able to help GLP in future acquisitions.”
Shares off 1.4% at $2.19.
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