Stock Name: CMPacific
Company Name: CHINA MERCHANTS HLDGS(PACIFIC)
DBS Vickers Securities in a Sept 13 research report says: "On July 6, CMHP completed the acquisition of a 51% stake in Yongtaiwen Expressway (YTW), Wenzhou, for RMB2.23 billion and will be able to consolidate the P&L numbers of YTW from 6 July onwards.
"The acquisition will be funded via both internal resources and debt, and will nearly double CMHP's EPS from 4.9 cents in FY2010 to 9.3 cents in FY2012F on a fully diluted basis. Our target price of $1.02 is based on explicit cash flow forecasts until the end of concessions for CMHP's various toll road assets.
"CMHP is trading at 8.6x FD FY11 PE, declining to 6x FD FY12 PE whilst offering FY2011 dividend yield of 8.9%, rising to 9.8% and will sustain a high dividend payout level of 50%-70% while pursuing its acquisition strategy. BUY."
Company Name: CHINA MERCHANTS HLDGS(PACIFIC)
| Research House: DBS Vickers | Price Call: BUY | Target Price: 1.02 |
DBS Vickers Securities in a Sept 13 research report says: "On July 6, CMHP completed the acquisition of a 51% stake in Yongtaiwen Expressway (YTW), Wenzhou, for RMB2.23 billion and will be able to consolidate the P&L numbers of YTW from 6 July onwards.
"The acquisition will be funded via both internal resources and debt, and will nearly double CMHP's EPS from 4.9 cents in FY2010 to 9.3 cents in FY2012F on a fully diluted basis. Our target price of $1.02 is based on explicit cash flow forecasts until the end of concessions for CMHP's various toll road assets.
"CMHP is trading at 8.6x FD FY11 PE, declining to 6x FD FY12 PE whilst offering FY2011 dividend yield of 8.9%, rising to 9.8% and will sustain a high dividend payout level of 50%-70% while pursuing its acquisition strategy. BUY."
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