SG: MARKET PULSE: Yoma Strategic, CDLHT (4 Dec 2013)

Stock Name: Yoma
Company Name: YOMA STRATEGIC HOLDINGS LTD

Research House: OCBC

Price Call: HOLD

Target Price: 0.84

Stock Name: CDL HTrust
Company Name: CDL HOSPITALITY TRUSTS

Research House: OCBC

Price Call: BUY

Target Price: 1.83

MARKET PULSE: Yoma Strategic, CDLHT

4 Dec 2013

KEY IDEA Yoma Strategic Holdings: Signs agreement with Ooredoo Summary: Yoma reported that its consortium, Digicel Asian Holdings, comprising Digicel Group, First Myanmar Investment Co., Ltd and Yoma Strategic Holdings Ltd, has signed an agreement with Ooredoo Myanmar to develop, construct and lease telecommunications towers in Myanmar. We understand from management that detailed terms regarding ownership and capital outlay for the consortium are still being negotiated and will be announced in due time. Digicel Asian Holdings' company in Myanmar, Myanmar Tower Company, will construct multi-tenancy towers in Myanmar and aim to work with multiple telecommunications operating companies, including Ooredoo's to facilitate its commitment to rapidly achieve coverage across the country after winning a coveted telecommunication license earlier this year. Maintain HOLD with an unchanged fair value estimate of S$0.84. (Eli Lee) MORE REPORTS CDL Hospitality Trusts: Proposed acquisition of Jumeirah Dhevanafushi in the Maldives Summary: CDL Hospitality Trusts (CDLHT) has entered into conditional land and business sale agreements with Xanadu Holdings Pvt Ltd for the acquisition of Jumeirah Dhevanafushi in the Maldives at US$59.6m (~S$74.8m). Based on the purchase price and assuming that CDLHT owned the property from 1 Jan 2013, the pro forma annualised net property income yield of the property for the nine months ended 30 Sep 2013 would be 6.2%. On a pro forma annualised basis for the nine months ended 30 September 2013, this translates to a DPS accretion of 2.2%, with potential for improvement as the property is currently still gestating as it only opened on 1 Nov 2011. These transactions will entail the activation of the CDLHT's business trust (HBT). Upon the completion of the acquisition, the HBT lessee will lease the property from the H-REIT (CDLHT's REIT) lessor pursuant to a lease agreement. We maintain a BUY rating on CDLHT but place our fair value estimate of S$1.83 under review pending a call with management. (Sarah Ong)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.

NEWS HEADLINES - US stocks fell Tue, with the S&P 500 and the Dow falling for a third straight day over uncertainty on the Fed tapering and fears that the market was overdue for a pullback from record levels. - Singapore's Nov purchasing managers' index fell short of expectations, dipping 0.4 point to 50.8, but the electronics index continued to strengthen, pointing to a surer-footed recovery for the sector. - Dynamic Colours is selling Suzhou Huiye Chemical & Light Industry Co and Suzhou Huiye Plastic Industry Co to AEI Compounds for about US$15m. - Tiong Seng Holdings has boosted its order book with a S$204.5m contract win from the Housing and Development Board (HDB).