OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: Ying Li
Company Name: YING LI INTL REAL ESTATE LTD

Research House: UOB KayHian

Price Call: BUY

Target Price: 0.65

Market Compass

27 March 2013~ Good Morning Singapore!

Singapore Idea Snippets:

27 March 2013~ Good Morning Singapore! Central Execution Team - The Excellence of Execution This product is made available by your Central Execution Team, for you as TRs of OCBC Securities to help you with your business and therefore it is confidential and only for internal circulation. It is not intended for onward circulation to non-OSPL TRs, clients or any other third party in this or any other version. Neither is this intended to be relied upon as a sole basis for any recommendation. TRs must also consider their clients' investment objectives, financial position and needs when intending to make or making any recommendation. For the front desk, by the front desk. All feedback to make this a better product is welcome. Global Flash: While You Were Sleeping Source: Marketwatch Quote for the day : Faced with what is right, to leave it undone shows a lack of courage. -CONFUCIUS Singapore: The Day Ahead SINGAPORE DAYBOOK: Regional real estate gets Morgan Stanley downgrade. Report gives low profitability and weak technicals as reasons for rating. MORGAN Stanley downgraded the regional real estate sector from "overweight" to "equal-weight" in its latest report. Citing the sector's low profitability and weak technicals, the report on Monday said: "Although still having cheap valuation, its current trailing return on equity is the second worst among all the 24 industry groups." "Real estate also ranks badly in terms of technical indicators like price momentum and fund flow... We observe relatively crowded fund flow going into the real estate industry recently... which is one of the drags on real estate to equal-weight from previous overweight," the report added. MARKET SCOOP Eastern Hldgs invests $10m in Asian securities Chuan Hup unit prematurely terminates JTC leases Olam opens new almond processing plant in Australia Retail unit size must average minimum 50 sq m from Wed S'pore industrial production plunges 16.6% yoy in Feb UBS asks S'pore court to seal cases of two fired traders CIMB Securities says... RAFFLES MEDICAL GROUP | OUTPERFORM | TP: S$3.81 RFMD had been hit by a series of setbacks in the last two weeks The group's re-application for a new proposed specialist centre in Orchard Road (Thong Sia Building, 30 Bideford Road) has not been successful Also, its bid for a new Hong Kong hospital lost out to IHH Healthcare two weeks back The group's existing efforts to upsize Raffles Hospital for another 100,000 sf of space should now take centrestage In terms of greenfield projects, RFMD will probably focus on its JV with China Merchant Bank to develop a Shenzhen hospital We understand that the investment may cost RFMD S$150m for its share of the JV The group can now fund its Chinese hospital by possibly selling its Orchard Road property, since the latter's development for healthcare use has been blocked We lift our target to 25x CY14 P/E (from 22x) to reflect its proven execution that should place it on par with its regional peers UOB KAY HIAN says... YING LI INTERNATIONAL | BUY | TP: S$0.65 The stock is currently trading at a 46% discount to its RNAV despite gaining 21.6% ytd New CEO could raise the profile of Ying Li. We are excited about the company's recent appointment of Mr Ko Kheng Hwa as Group CEO Sell-down unwarranted due to Ying Li's limited exposure to residential properties Ying Li has plans to transfer its retail malls into a trust vehicle for listing to monetise the assets and recycle the capital RNAV surprises will come from Wuyi Rd project and San Ya Wan phase 2 Ying Li will recognise the entire sales proceeds from International Plaza and book in the profits this year Key risks that could impede the stock from reaching our target price include: a) delays in the recognition of its properties, and b) regulatory measures to cool the property market Our targeted price is based on a 21.8% discount to our RNAV of S$0.83/share DMG OSK Securities says... CAPITACOMMERCIAL TRUST | NEUTRAL | TP: S$1.70 We visited CapitaGreen's showroom yesterday morning and were wowed by its: i) 40th-floor sky garden and restaurant, ii) innovative technology which directs cool air inwards, and iii) unique dual façade that cuts solar heat Set to be CCT's next growth driver, it offers c. 700,000 sq ft of Grade-A office space and is scheduled to receive its TOP by 4Q14 Unique design helps save on utility cost and strategic location a key selling point CapitaGreen is a joint development by CapitaLand, CCT and Mitsubishi Estate Asia In this project, CCT owns 40% equity interest as well as a call option to acquire the remaining 60% within three years upon receiving its temporary occupancy permit (TOP) We expect the building, involving a total development cost of SGD1.4bn, to generate a forecast yield of 5.1%-6.3% when occupancy stabilizes