Stock Name: RafflesEdu
Company Name: RAFFLES EDUCATION CORP LIMITED
Research House: BNP Paribas
“Should the company successfully develop the existing 280,000 sqm residential site within OUC, we believe it should be able to generate substantial investment returns,” Lee says.
Company Name: RAFFLES EDUCATION CORP LIMITED
Research House: BNP Paribas
Raffles Education (E6D.SG) is +4.7% at $0.335, taking its year-to-date run up to 31.4%; with 34 million shares traded it is the third most active stock today.
BNP Paribas analyst Brenda Lee says the recent rally has come on the back of potential positive news flow from the Oriental University City (OUC) development after RLS said it had identified a property developer to co-develop the OUC land to monetise its $394 million investment.
BNP Paribas analyst Brenda Lee says the recent rally has come on the back of potential positive news flow from the Oriental University City (OUC) development after RLS said it had identified a property developer to co-develop the OUC land to monetise its $394 million investment.
“Should the company successfully develop the existing 280,000 sqm residential site within OUC, we believe it should be able to generate substantial investment returns,” Lee says.
She notes, RLS estimates the residential property development can fetch CNY7,000/sqm, on land cost of $94/sqm (around CNY480/sqm) at a development cost of CNY3000-3500/sqm.
Lee has not included any potential property development earnings from OUC but says “earnings growth potential looks skewed to the upside.” House is revisiting its estimates; it has a Buy rating on the stock with a $0.33 target. $0.350 is likely the near-term cap.
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