Stock Name: MacqIntInfra
Company Name: MACQUARIE INT'L INFRA FUND LTD
DBS Vickers Securities in a Nov 28 research report says: "Over the years, MIIF has divested its non-Asian assets, and repaid corporate level loans with the sale proceeds, rendering a cleaner balance sheet with current net cash of about $115 million.
"The sale of stakes in other funds also eliminated the black box problem (assets with limited financial visibility) and the fund now focuses purely on key Asian infrastructure assets. MIIF paid out 3 cents dividend in FY2010. Post restructuring of its portfolio, MIIF is now guiding for 5.5 cents dividend per share in FY2011, based on expected cash flow generation plus existing cash reserves (2.75 cents already declared for 1H11).
"We expect this is achievable and given the healthy implied yield of close to 10.5% at current prices. Target price of 64 cents, based on DCF valuation of underlying assets. BUY (reinstating coverage)."
Company Name: MACQUARIE INT'L INFRA FUND LTD
| Research House: DBS Vickers | Price Call: BUY | Target Price: 0.64 |
DBS Vickers Securities in a Nov 28 research report says: "Over the years, MIIF has divested its non-Asian assets, and repaid corporate level loans with the sale proceeds, rendering a cleaner balance sheet with current net cash of about $115 million.
"The sale of stakes in other funds also eliminated the black box problem (assets with limited financial visibility) and the fund now focuses purely on key Asian infrastructure assets. MIIF paid out 3 cents dividend in FY2010. Post restructuring of its portfolio, MIIF is now guiding for 5.5 cents dividend per share in FY2011, based on expected cash flow generation plus existing cash reserves (2.75 cents already declared for 1H11).
"We expect this is achievable and given the healthy implied yield of close to 10.5% at current prices. Target price of 64 cents, based on DCF valuation of underlying assets. BUY (reinstating coverage)."
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