Tuesday, May 3, 2011

Lippo-Mapletree Indonesia Retail rated 'buy' by OCBC

Stock Name: LippoMapleT
Company Name: LIPPO-MAPLETREEINDORETAILTRUST
Research House: OCBC

OCBC Investment Research in an Apr 29 research report says: "LMIR Trust (LMIR) reported 1Q11 gross revenue of $32.8 million, up 40.8% y-o-y and 1.9% q-o-q, which was also in line with our expectation and street estimates. Net property income rose 9.9% y-o-y and 6.1% q-o-q to $22.4 million.

"1Q11 DPU is 1.17 cents (also in line with our forecast of 1.14 cents) compared to 1.11 cents in 4Q10 and 1.20 cents in 1Q10. On an annualized basis, this represents a yield of 8.5% based on April 28's close of 55.5 cents. As at Mar 31, LMIR's gearing remained flat q-o-q at 10%, with total borrowings stable at $125 million.

"Management guided that Indonesia's retail sales are expected to rise by 20% to $13.8 billion in 2011, due to the growing number of retail outlets and strong domestic demand. Unchanged fair value of 59 cents (total returns of 14.7%). MAINTAIN BUY."

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