Tuesday, May 3, 2011

Allgreen Properties rated 'underperform' by CIMB

Stock Name: Allgreen
Company Name: ALLGREEN PROPERTIES LTD
Research House: CIMB

CIMB in an Apr 29 research report says: "1Q11 core net profit of $60.1 million was slightly above consensus and our estimates, forming 34% of our full-year estimate mainly because of higher-than-expected development profit. 1Q11 profit was boosted by sales of The Cascadia.

"We adjust our FY2011-2013 core EPS estimates by -6/+22% on adjustments to our recognition schedule. Our target price is intact at $1.17, still pegged at a 30% discount to RNAV. While investment properties constitute more than 50% of AG's gross asset value, residential development remains central to its business and we see little to be excited about with the continued policy overhang.

"De-rating catalysts are expected from AG's depleting land bank, rising land-tender prices and a conspicuous lack of success in its recent site tenders. MAINTAIN UNDERPERFORM."

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