Company Name: KEPPEL LAND LIMITED
Research House: Nomura
Nomura lifts Keppel Land (K17.SG) target price to $5.50 from $5.10 after raising NAV estimate by 7.8% to reflect potential gains from developer’s Tianjin Eco City project in China.
New target translates to 2.0x FY11 P/B vs stock’s mid-cycle 1.4x P/B valuation; “we believe the stock’s significant exposure to prime Grade-A office (space), which we are most bullish on, justifies the premium over the mid-cycle valuation.”
Notes company has sold more than 90% of 220 units launched at Tianjin Eco City’s Seasons Park residential project at average price of RMB11,000/sq m vs RMB9,000/sq m tipped by house; “following the strong response to Seasons Park’s soft launch, we expect Keppel Land to launch more units for sale.”
Keeps Buy call. Shares flat at $4.61.
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