Stock Name: Wheelock
Company Name: WHEELOCK PROPERTIES (S) LTD
CIMB in an Aug 2 research report says: "2Q11 core net profit of S$37.2m (-55% yoy) forms just 14% of our full-year estimate and is also below consensus estimate. 1H11 core net profit accounts for 34% of our figure. The variance was attributable to zero new sales at Orchard View in 2Q11 and slower recognition of Scotts Square.
"Factoring in slower sales for its residential projects, we adjust our FY11-13 core EPS estimates by -38/+17% and reduce our target price to S$2.06 from S$2.39, now pegging the stock at a larger 20% (previously 10%) discount to RNAV in view of limited catalysts.
"While Wheelock's value is underpinned by its large cash hoard, there is a seeming lack of lucrative acquisition opportunities locally while its high-end residential sales are not picking up. DOWNGRADE TO NEUTRAL."
Company Name: WHEELOCK PROPERTIES (S) LTD
| Research House: CIMB | Price Call: HOLD | Target Price: 2.39 |
CIMB in an Aug 2 research report says: "2Q11 core net profit of S$37.2m (-55% yoy) forms just 14% of our full-year estimate and is also below consensus estimate. 1H11 core net profit accounts for 34% of our figure. The variance was attributable to zero new sales at Orchard View in 2Q11 and slower recognition of Scotts Square.
"Factoring in slower sales for its residential projects, we adjust our FY11-13 core EPS estimates by -38/+17% and reduce our target price to S$2.06 from S$2.39, now pegging the stock at a larger 20% (previously 10%) discount to RNAV in view of limited catalysts.
"While Wheelock's value is underpinned by its large cash hoard, there is a seeming lack of lucrative acquisition opportunities locally while its high-end residential sales are not picking up. DOWNGRADE TO NEUTRAL."
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