Stock Name: UE
Company Name: UNITED ENGINEERS LTD ORD
CIMB in a Dec 9 research report says: "We expect stronger operating cash flows in 2012/13 with recurring income from the one-north mixed development and UE BizHub East. Cash flows should be further boosted by proceeds from completion of The Rochester residential development.
"With operating cash balances more than sufficient to meet capex requirements, net gearing is estimated to drop to 0.4x (from 0.5-0.7x in 2008/09). This leaves ample room for acquisitions to 2008's net gearing of 0.7x and management's target of 1x, with a $500 million MTN programme as an available funding facility.
"We factor in less bearish assumptions for mixed developments, offset by lower ASPs for its Bendemeer site, resulting in +2%/-30% EPS adjustments, and a slightly higher RNAV and target price of $2.14 (still at 45% disc to RNAV). MAINTAIN OUTPERFORM."
Company Name: UNITED ENGINEERS LTD ORD
| Research House: CIMB | Price Call: BUY | Target Price: 2.14 |
CIMB in a Dec 9 research report says: "We expect stronger operating cash flows in 2012/13 with recurring income from the one-north mixed development and UE BizHub East. Cash flows should be further boosted by proceeds from completion of The Rochester residential development.
"With operating cash balances more than sufficient to meet capex requirements, net gearing is estimated to drop to 0.4x (from 0.5-0.7x in 2008/09). This leaves ample room for acquisitions to 2008's net gearing of 0.7x and management's target of 1x, with a $500 million MTN programme as an available funding facility.
"We factor in less bearish assumptions for mixed developments, offset by lower ASPs for its Bendemeer site, resulting in +2%/-30% EPS adjustments, and a slightly higher RNAV and target price of $2.14 (still at 45% disc to RNAV). MAINTAIN OUTPERFORM."
No comments:
Post a Comment