Citi starts Perennial China at buy

Stock Name: PerennialCRT
Company Name: PERENNIAL CHINA RETAIL TRUST

Research House: Citigroup

Price Call: BUY

Target Price: 0.61

Citigroup has initiated coverage of Singapore-listed Perennial China Retail Trust (PCRT.SI), which owns shopping malls in China, at buy with a target price of $0.61.

Citi said Perennial China, which owns 4 retail malls and 2 office towers in the country, is a business trust that offers exposure to the China retail market.

“Amid market uncertainties, we believe Perennial China offers defensiveness through its retail exposure and recurring income,” said Citi in a report.

The brokerage said it expects Perennial China’s core net income to grow at an average annual rate of 38.2% in 2011-2014.

At 11:09 a.m., shares of Perennial China were flat at $0.51, and have fallen about 16.4% since it made its debut in Singapore in June.