OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: SK6U
Company Name: SPH REIT

Research House: Nomura

Price Call: HOLD

Target Price: 0.94

Stock Name: SPH
Company Name: SINGAPORE PRESS HLDGS LTD

Research House: OCBC

Price Call: HOLD

Target Price: 4.14

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED

Research House: DBS Vickers

Price Call: BUY

Target Price: 3.31

Market Compass

05 September 2013~ Good Morning Singapore!

Singapore Idea Snippets:

05 Sept 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 :The quality of decision is like the well-timed swoop of a falcon which enables it to strike and destroy its victim. - SUN TZU Singapore: The Day Ahead SINGAPORE DAYBOOK :SGX derivatives continue ascent. August figures also show trading in securities going the other way. SINGAPORE Exchange (SGX) trading volumes for derivatives continued to grow from a year ago, but August numbers suggest a slowdown in securities trading. The local bourse yesterday reported that total futures and options volume rose 32 per cent year-on-year to 8.6 million contracts in August. This was boosted by a 140 per cent year-on-year increase in FTSE China A50 index futures volume to 1.8 million contracts. Trading volumes for MSCI Taiwan, SGX CNX Nifty and Nikkei 225 index futures also rose for the month. But Phillip Securities analyst Ken Ang expects derivatives' volume to be lower quarter-on-quarter for the period ending September. Quarter-to-date, its daily average contracts stand at about 400,000, compared with 520,000 in the previous quarter. (Source: The Business Times) MARKET SCOOP Amber Rd site on sale, owner seeking more than S$63m PowerGas may appeal against EMA'sS$1.5m fine on gas leak incident SIA to use A380 to serveShanghai, boosting seat capacity 12% Moody's: Singapore Reits insulated from rising interest rates Mapletree raises maximum of US$1.4b for China-focused private fund DTZ puts Tat Hong's Gul Crescent site up for sale, indicative price about S$33m Cordlife to buy 19.92% interest inM'sian blood bank for RM29.58m FDS Networks terminates S$165m RTO, targets new firm (Source: The Business Times) NOMURA Securities says... SPH REIT | NEUTRAL | TP: S$0.94 SPH REIT offers the highest exposure to the prime Orchard retail market amongst S-REITs, as the Paragon asset accounts for over 80% of initial portfolio value and is the primary driver of valuation The Paragon Mall has a solid operating track record, consistently achieving committed occupancy of 100% and a compounded annual growth of 7% in rents over the past 10 years It appears average rent at Paragon is still competitive vs. ION Orchard and Wisma Atria Coupled with limited new supply of prime retail space projected in FY13-14F, we believe there is potential reversion upside for leases expiring in FY14F Medical suites/offices account for 32% of Paragon's total NLA currently and its proximity to the Mt. Elizabeth Hospital has contributed to its popularity amongst healthcare providers Upon completion of the Seletar Mall at end-2014F, we believe there is potential for SPH REIT to exercise the ROFR to acquire the asset, which could add c. 5% to distribution on our numbers, assuming entry yield of 5.5% and 75% debt financing at a WACC of 3.6% Our TP of SGD0.94 is based on the average of 1) our NAV estimate of SGD0.95 and 2) ascribed FY14F yield of 5.5% Our TP implies a potential total return of 3.3% (potential downside of 2.1% + FY14F yield of 5.4%) Considering the flattish distribution in the near term, we believe the stock is fairly priced for now We initiate coverage with a Neutral rating OCBC Securities says ... SINGAPORE PRESS HOLDINGS | HOLD | TP: S$4.14 As anticipated, SPH conducted a successful REIT spin-off for Paragon and Clementi Mall, yielding substantial cash proceeds and subsequently an 18 S-cents bonus dividend for shareholders We see the establishment of a REIT subsidiary vehicle as a major positive for the group's mall development business and believe management's decision to hold a 70% majority stake makes significant sense - this enables accounting consolidation and for the bulk of property earnings to continue accreting to SPH That said, the 18 S-cents bonus cash dividend was somewhat below view, particularly as the group was already sitting on an fairly hefty war-chest of ~S$0.9b investible funds as at end 3QFY13 We believe that, for investors, a key performance indicator for the group ahead is likely to be the degree in which management can expediently deploy excess capital for attractive returns Still seeing headwinds for the print business In addition, the latest 3QFY13 figures presented a picture of continued headwinds for the group's core print business Over 3QFY13, operating revenue from the key Newspaper and Magazine segment fell 3.3% to S$259.3m Given the cumulative impact from cooling measures and hawkish loan requirements on the property and automobile sectors, conditions for the print business remain Challenging We saw pressure on 3QFY13 ad revenues, which fell 4.5% YoY in 3QFY13, and circulation revenues also decreased S$4.9m YoY (down 3.2%) as the physical subscription base declined Given current headwinds for the print business and limited visibility in terms of catalysts ahead, we believe the risk-reward proposition for the counter has turned fairly neutral Downgrade to HOLD with a lowered fair value estimate of S$4.14, versus S$4.94 (before the REIT spin-off) previously Our barometer for an upturn in outlook ahead consists of two key groups of operating metrics: for its print businesses - ad and circulation revenue growth; and for its retail property segment - expedient and accretive capital deployment DBS VICKERS Securities says... GLOBAL LOGISTIC PROPERTIES | BUY | TP: S$3.31 GLP announced it is selling 2 wholly owned properties and 7 assets currently held under its GLP Japan Income Partners Fund I, in which it has a 33.3% stake, to GLP J-REIT for US$553.9m The 9 properties have a total GFA of 310,000sm, of which 58% are located in Tokyo or Greater Tokyo and the remaining in Osaka, Nagoya, Hiroshima and Sapporo The sale of the 7 properties held under the fund is expected to be completed by Oct 2013 while the divestment of the remaining 2 is expected to be completed in Mar 2014 The 7 assets belonging to the income fund, managed by GLP, is expected to be transacted at a cap rate of 6% vs entry yield of 7.5%, which should generate a net levered IRR in excess of 46% since acquisition in Feb 2012 Post the sale, GLP intends to maintain its 15% stake in the J-REIT and should recognise net proceeds of US$130m (after factoring its estimated share of the REIT's funding requirements) These proceeds are expected to be redeployed to its development activities in China, Japan and Brazil The latest transaction is anticipated as the group had earlier identified asset divestments into the J-REIT as an avenue to raise funds for its capex programme While its balance sheet remains healthy with a net debt to asset ratio of 9.2% and gross cash of US$1.8bn as at Jun-2013, it is aiming to grow its portfolio GFA by 25% this year Our current FY14 numbers have not factored in the above gains at the fund level We continue to like GLP for its strong execution track record and its ability to create value from its development and fund management activities Maintain BUY and S$3.31 TP

OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED

Research House: Credit Suisse

Price Call: BUY

Target Price: 3.15

Market Compass

28 May 2013~ Good Morning Singapore!

Singapore Idea Snippets:

28 May 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 :The final test of a gentleman is his respect for those who can be of no possible service to him. - WILLIAM LYON PHELPS CREDIT SUISSE Securities says... GLOBAL LOGISTIC PROPERTIES | OUTPERFORM | TP: S$3.15 FY13 core net profit of S$350 mn (+11% YoY) was in line Growth was driven by Brazil, strong development momentum, rental growth in China, but partly offset by depreciation JPY and loss of income from divestment of 33 properties into GLP J-REIT Rents and lease ratios maintained stable across the portfolio and development starts beat expectations slightly in JP and CH in FY13 In FY14, management is targeting 2.5 mn sq m development starts in CH, 0.4 mn sq m in JP and 0.31 mn sq m in BR Total estimated project cost is ~US$2 bn With US$1.96 bn cash pile and 8.2% net debt/asset, GLP has the flexibility to finance capex No change in cap rates yet although sentiment is pointing towards rents and prices eventually improving in JP GLP continues to acquire land banks, acquiring 4.2 mn sq m in CH with 10.5 mn sq m reserves We raise FY14-15E core profit estimates slightly, by 0.2-1.3% and have incorporated 2.5 mn sq m development starts in FY14 Our new TP and RNAV is S$3.15 (from S$3.00) driven by accelerated development starts We continue to like GLP due to its logistics exposure, with a growth kicker from its development completions DBS VICKERS Securities says ... IHH HEALTHCARE | HOLD | TP:S$1.55 1Q core net profit (excl. exceptional items) of RM133.5m was 17% higher than a year earlier, accounting for c.18% of our FY13F earnings Revenue and EBITDA grew by 29% and 24% to RM1.6bn and RM347.6m respectively, partly driven by a full quarter of Acibadem's consolidation in 1Q13, compared to only two months a year earlier In addition, the Group also saw revenue growth from existing operations and contribution from new hospitals EBITDA margins (excl PREIT) weakened marginally by 0.8ppts to 21.7% (1Q12: 22.5%) as it saw continued losses from its new hospitals It also faced cost pressures from personnel and operating lease expenses, particularly its Singapore hospitals We estimate FY13F EBITDA margin to be 20.8% Novena Hospital posted a smaller EBITDA loss of RM3m (from -RM15.6m/ -RM16.4m in 1Q12/ 4Q12) This was achieved on the back of higher revenue of RM37.2m and streamlining of its operating costs Hence, it seems like management's target of achieving EBITDA breakeven by 1H13 is within reach We raised our TP to S$1.55 (RM3.73) on the back of a higher EV/EBITDA multiple of 22x (from 18x) on FY13F/14F earnings for its Singapore operations and its international operations (14x, from 13x) with the re-rating of peers We also adjust for the higher market values for its holdings in listed entities, namely PREIT and Apollo Hospitals Maintain HOLD, given its relatively rich valuations at 41x/35x on FY13F/14F earnings OCBC Securities says... DYNA-MAC HOLDINGS | HOLD | TP:S$0.44 Dyna-Mac Holdings reported 1Q13 results that were slightly below our expectations 1Q13 revenue fell by 19% QoQ to S$60.1m, while net profit fell 24% QoQ to S$6.7m; as there is little or no seasonality involved in Dyna-Mac's business, we believe a QoQ comparison better illustrates the changes in the group's performance Gross margin was 24.4% in 1Q13 (4Q12: 23.1%), within the typical range of 20-30% The group also suffered a fair value loss on financial instruments of S$1.2m in 1Q13 due to unfavourable movements on the contracted USD forward rates against spot rates As of 14 May-13, its order-book fell to S$113m (27 Feb-13: S$134m), providing cover for under two quarters We also understand that Dyna-Mac is tendering for a number of large projects and expects to rebuild its order-book significantly in 2H13 While we are positive over Dyna-Mac's medium- to long-term outlook given the large backlog of floater orders across the industry, we are also mindful that its low order-book may pose a risk to near-term earnings In addition, the group's expansion into Malaysia and Guangzhou remains a work-in-progress, and bottom-line earnings growth may only be evident in FY14-15F After adjusting our model to incorporate the 1Q13 results, our fair value estimate declined to S$0.44 (previously S$0.50).

CIMB ups GLP target by 8% to $3.32, keeps Outperform

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED

Research House: CIMB

Price Call: BUY

Target Price: 3.32

CIMB raises Global Logistic Properties (MC0.SG) price target to $3.32 from $3.06, citing catalysts from lower Japanese cap rates and asset recycling initiatives.

The expected reflation of the Japanese economy is driving acquisition appetite for logistics properties and culminating in lower cap rates, it says; "we believe that revaluation gains from GLP's Japanese assets may come faster than expected and we expect the group to recycle more Japanese assets in 2H13."

CIMB sees a few value propositions: There is 10 cents per share upside if cap rates are compressed by 50 bps; an enlarged AUM platform could immediately add 10ct a share; the redeployment of its excess capital into China at current run rates for the next five years could lift valuations by 38 cents per share.

However, it notes that a weaker yen against the USD remains a drag for GLP; the house lowers its FY13-15 core EPS estimates by 17%-23% citing a weaker JPY and earnings lost from assets injected into GLP J-REIT. It keeps GLP rated Outperform. Shares are flat at $2.95.

Daiwa upgrades GLP to Outperform vs Hold

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED

Research House: Daiwa

Price Call: BUY

Target Price: 3.09

Daiwa upgrades Global Logistic Properties (MC0.SG) to Outperform from Hold and raises its target price to $3.09 from $2.70, after using a new model to value the warehouse developer.

Believing that the across-the-board NAV approach undervalues GLP’s development business, the house now values GLP’s stable capital--backed by matured assets--at parity to book value while valuing its high-growth development portions at a higher P/B ratio of 2.51 times, which better “reflects the expected returns and hurdle rates.”

Daiwa says it upgraded ratings because “we believe [GLP] is only at the early stage of realizing the potential of its development model, and think its unwavering focus on developments paves the way for strong EPS growth from FY15.”

The stock is up 0.7% at $2.74.

Global Logistic Properties' Brazil deal, J-REIT offer positives: CIMB

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED

Research House: CIMB

Price Call: HOLD

Target Price: 2.69

Global Logistic Properties  is a step closer to going global with its plan to enter Brazil through two JV funds, CIMB says; “taken with its planned J-REIT, assets under management looks set to balloon − a strong positive − though the deal comes with higher risk premiums and equity fund raising.”

It says the deal’s attractions are the AUM platform scaling up further and net property income upside with GLP projecting leveraged IRRs of 18%-19%. “However, investors may find it hard to swallow the high risk premiums associated with this deal and possible distraction from its China plans. GLP also intends to fund its initial equity contribution through share placements, which could further pressurise its share price.”

It notes 1H13 core EPS forms 52% of its FY13 estimate; it raises its FY13-15 core EPS forecasts by 8%-12% for the Brazilian deal, but notes NPI could plunge once its J-REIT is established. It estimates the J-REIT listing could add 12-14 cents/share to RNAV. It raises its RNAV-based target to $2.69 from $2.55, but keeps a Neutral call on limited upside from the Brazilian and J-REIT initiatives. The stock is down 4.4% at $2.60.

GLP's shares fully valued; Brazil deal neutral: Religare

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED

Research House: Religare Capital

Price Call: HOLD

Target Price: 2.61

Religare is neutral on GLP’s plan to team up with Singapore and China sovereign wealth funds and Canada Pension Plan Investment Board to buy Brazil properties worth US$1.45 billion ($1.77 billion); GLP is funding its portion with a share placement.

“Brazil investments are minimally accretive (+2.3% to RNAV), but placement of shares could signal share being fully-valued, given US$1.4 billion cash on balance sheet and low 24% net debt/assets. Moreover, investors’ unfamiliarity with Brazil could be an overhang.”

The house notes the stock is up around 55% year-to-date. It raises its target to $2.61 from $2.46 after rolling forward to par with end-2013 RNAV and incorporating recent divestments and investments. The house says 1H13 core net profit of US$181 million, up 27% on-year, was in line with expectations. It keeps a Hold call. The stock is down 3.3% at $2.63.

GLP's proposed J-REIT to differentiate strategy: DBSV

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED

Research House: DBS Vickers

Price Call: BUY

Target Price: 2.61

Global Logistic Properties’ proposed J-REIT will offer the company a differentiated strategy, with a yield-driven J-REIT focusing on mature and stabilised assets, while GLP will focus on potential NAV and earnings enhancement by investing in development and properties with asset-enhancement possibilities, DBS Vickers says.

“GLP would generate recurrent income as the property and asset manager of the J-REIT,” it adds. The estimated Y100 billion ($1.5 billion) net cash proceeds will enable GLP to recycle capital while growing its recurrent fee income platform and receive its share of recurrent dividend income, it says.

“In terms of potential earnings impact, the sale of the initial assets would mean income vacuum in the near term, partially offset by fee and dividend income.” The net profit before tax of the J-REIT’s initial portfolio is around US$102 million ($124.5 million), or 23.1% of GLP’s fiscal-FY12 pre-tax profit, it says. But the house expects reinvestment of the proceeds could boost RNAV by $0.20/share. It keeps a Buy call, putting its $2.61 target under review. The stock is up 1.9% at $2.71.

GLP my see some dilution from J-REIT plan: Religare

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED

Research House: Religare Capital

Price Call: HOLD

Target Price: 2.46

If GLP’s Japanese assets are floated at book value, there could be dilution of about US$0.04/share unless GLP announces new accretive investments, Religare says.

It notes the Japanese assets have an annualised 1Q13 EBIT of US$452 million ($551 million) and asset value of US$7.9 billion.

While GLP could theoretically divest all 68 of its Japanese assets, instead of the 30 it is injecting into the J-REIT, it would find it difficult to re-deploy that much capital in a short time frame, the house notes.

It keeps a Hold call with $2.46 target. The stock is up 2.6% at $2.73.

Nomura cuts Global Logistic Properties to Neutral, Ups target 12.9%

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED

Research House: Nomura

Price Call: BUY

Target Price: 2.80

Nomura downgrades Global Logistic Properties to Neutral from Buy. “Notwithstanding GLP’s leading market share in China and Japan where we remain sanguine on demand for high quality logistics space, further upside to the current share price in the near term is likely to be more modest.”

It adds, one of the reasons for the stock’s outperformance is the potential monetisation of Japan assets; the house estimates spinning off 30% of GLP’s Japan assets into a property fund would add US$0.07/share to NAV.

Nomura raises its target to $2.80 from $2.48 after rolling its valuation forward to FY14, ascribing a 15x P/E multiple to the fund-management business, vs 10x previously, and imputing a 5% NAV premium, vs parity previously, on potential accretion from any asset-monetization exercise.

The house tips possible upside risks from better-than-expected gains from any asset-monetisation or a higher-than-expected dividend payout, with potential downside risks if logistics-space demand is below expectations, especially in China, where most of GLP’s growth is projected. The stock is flat at $2.51.

Daiwa raises GLP target to $2.59 vs $2.27

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED

Research House: Daiwa

Price Call: BUY

Target Price: 2.59

Global Logistic Properties’ tie-up with Haier underscores China’s pent-up demand, Daiwa says.

While no details on the initial three projects’ size or timing for completion were given, the deal highlights GLP’s ability to source domestic corporate demand for its facilities and reaffirms the view domestic Chinese entities are seeking more modern warehouse facilities, the house says.

It notes CBRE data show average China rentals for logistics facilities are up 2.9% year-to-date, while Tokyo logistic-facility vacancies decreased to 3.6% in 2Q12 from 1Q12’s 4.5%, with signs of increasing rents.

It raises its target to $2.59 from $2.27, based on parity with NAV; it no longer applies a 20% discount for the China assets. It keeps an Outperform call. The stock is up 7.7% at $2.65 after a series of large trades.

Shares slip by midday; GLP rises

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED

Research House: CIMB

Price Call: BUY

Target Price: 2.37

Singapore shares slipped by midday, extending losses for a third straight session, as worries over Greece’s future in the euro zone continued to sap risk appetite.

The benchmark Straits Times Index fell 0.4% to 2,768.06, reversing its earlier gains as Asian shares fell to their lowest levels of the year.

“We’re seeing outflows from Asia. Nobody really wants to hold equities going into the weekend, because they’re worried about some political event that could happen,” said Markus Rosgen, head of Asia Pacific equity strategy at Citigroup.

Global Logistic Properties bucked the overall trend and was the strongest gainer on the STI, risng as much as 1.8% after it said its fourth-quarter net profit tripled from a year earlier.

CIMB said it expects GLP’s net asset value and earnings to continue growing, helped by the completion of its developments in China and Japan. It has an outperform rating on the stock with a target price of $2.37.


 

Goldman starts GLP coverage with buy rating

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED

Research House: Golman Sachs

Price Call: BUY

Target Price: 2.34

Goldman Sachs started coverage of Singapore-listed logistics company, Global Logistic Properties (GLP) (GLPL.SI), with a buy recommendation and set a 12-month price target of $2.34.

By 10:20 A.M., GLP shares were up 1% at $1.865. The stock fell 13% since the start of last year.

Goldman Sachs said GLP’s size and depth of its network in China and Japan displayed key competitive advantages.

The brokerage said GLP’s operations in China are supported by structural growth in domestic consumption and limited supply of existing logistics facilities.

In Japan, its businesses provide annuity-like income streams which serve as an internal funding source for its expansions in China, Goldman Sachs said, explaining that GLP’s fundamentals look compelling with self-funded growth.

Goldman Sachs expects the company to outperform the sector over the next three years with an estimated compounded average growth rate of 16% in its earnings per share.

GLP started at outperform by CIMB

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED

Research House: CIMB

Price Call: BUY

Target Price: 2.24

CIMB Research has started coverage of Global Logistic Properties, which owns warehouses in Japan and China, with an outperform rating and a target price of $2.24.

GLP has the size and network in logistics to multiply its tenant base, given its ability to lease space to multinational corporations in important cities under the same landlord, said CIMB in a research report.

The company also works closely with the Chinese government to acquire land, which provides GLP with a development pipeline on top of the 5.1 million square meters of space it already has.

"It has unique exposure to China’s growth, backed by stable Japan cashflows and a highly competitive capital structure," said CIMB in a report.

It also added that GLP is trading at a 20% discount to its restated net asset value and at more attractive multiples compared to its peers.

At 11 a.m., shares of GLP were 0.3% higher at $1.795, but have fallen 16.4% since the start of the year.

Global Logistic Properties rated 'outperform' by CLSA

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED

Research House: CLSA

Price Call: BUY

Target Price: 2.00

CLSA Research in a Sept 14 research report says: "Global Logistic Properties (GLP) is the leading provider of logistic assets in China and Japan where underlying demand is underpinned by surging domestic consumption in China and Japan.

"GLP is set to enjoy 14% core earnings CAGR by 2015 on the back of rising demand for logistic assets. Booming online retail sales in China and outsourcing trend in Japan are key drivers for logistic space demand. Furthermore, a low gearing and potential monetisation of its Japan portfolio are key enablers to fund its China growth ambitions of 1.66 million sqm in FY12 and 2.0 million sqm per annum going forward.

"Our target price of $2.00 per share is a blended average of FY12/13 RNAV. OUTPERFORM (initiating coverage)."

Global Logistic Properties rated 'buy' by UBS

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED

Research House: UBS

Price Call: BUY

Target Price: 2.71

UBS Investment Research in a May 31 research report says: "Global Logistic Properties (GLP) reported Q4FY11 earnings of US$49.2 million. Stripping out US$11 million revaluation loss, headline profit was 13.5% higher y-o-y at US$59.8 million, in line with consensus but below UBS estimates.

"The shortfall was due primarily to higher withholding taxes in Japan, 2.4% weakening of the Yen against the US$ in Q4FY11, and a US$6.4 million foreign exchange loss on Yen-denominated loans. We fine-tune our model to reflect the higher lease ratios in China and update our forex assumptions.

"On average, we raise our FY2012-2014 earnings estimates by 5.5%. Valuations remain attractive at 1.1x P/B. Price target of $2.71 based on 1x our sum-of-the-parts RNAV estimates. BUY"

Global Logistic Properties rated 'overweight' by JP Morgan

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED
Research House: JP Morgan Chase

JP Morgan Research in a Feb 25 research report says: "GLP announced a joint venture with the Suzhou municipal government to develop a modern logistics park with a total land area of 1 million sqm. Phase 1 will comprise 200,000sqm GFA of modern logistics facilities with GLP's investment cost at US$90 million (90% stake in the JV).

Read more...

GLP - GLP 3Q net profit likely at US$80m - JPMorgan

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED
Research House: JP Morgan Chase

JPMorgan estimates Global Logistic Properties’ (MC0.SG) third-quarter net profit at US$80 million ($10.2 miliion) on good leasing momentum. The house says its forecast indicates strong growth over the corresponding period a year ago. 

GLP is expected to release third-quarter results after markets close today. “Strong customer demand for GLP’s Chinese facilities underpins the group’s robust growth trajectory and is supportive of a positive valuation for GLP’s development pipeline,” JPMorgan says. 

It maintains an Overweight rating with a $2.90 target, and says GLP offers an attractive buying opportunity as “any recent share price weakness related to China’s rate hikes and policy tightening appears unwarranted.” The stock is down 1.0% at $1.97.

GLP - AMB Property Corp. and Prologis may Change GLP's Japan landscape - UBS

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED
Research House: UBS

Global Logistic Properties (MC0.SG) is flat at S$2.12 in muted trade, shrugging off news AMB Property Corp. (AMB) and Prologis (PLD) Thursday confirmed the two companies were discussing a potential merger of equals. UBS analysts Michael Lim and Adrian Chua say if the deal proceeds, “it would create a global industrial powerhouse.” 

They note GLP’s competitive landscape in Japan could intensify, (PLD/AMB would have combined Japan logistic NLA of around 1.5 million square meters, 42% smaller than GLP’s) but “PLD/AMB would have a greater ability to leverage its combined network and could also intensify competition for acquisition and development growth. This, in turn, would challenge GLP’s plans to pursue greenfield projects through its Japan fund.”

They add, a PLD/AMB entity does not alter GLP’s China leadership dynamics as PLD does not have a China footprint or development pipeline. UBS keeps its Buy rating and $2.71 target; “nonetheless, we think this newsflow could weigh on investor sentiment although we do not foresee any near-term impact.” 

 

GLP - Global Logistic Properties rated 'buy' by Nomura

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED
Research House: Nomura

Nomura Research in a Jan 5 research report says: "GLP announced on Jan 4, 2011 the acquisition of a 53.1% stake in Airport City Development Co Ltd (ACL), the sole developer in the Beijing Capital International Airport's (BCIA) airside cargo and bonded logistics area for a net consideration of US$375 million.

Read more...

GLP - Citi nudges up GLP target; 1H results strong

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED
Research House: Citigroup

Citigroup raises Global Logistic Properties (MC0.SG) target to $2.80 from $2.78, keeps at Buy.



Says strong fiscal 1H11 results helped by unique, policy-friendly business model, its China-Japan dual exposure.

Sets new target at par to estimated FY11E NAV/share, 1.53x FY11 P/B ratio. Says results generally in-line with expectations, strong growth in earnings mainly due to mid-teen increase in rental revenue together with good cost control.



Adds, acquisitions of logistics properties making good progress, low gearing to support further acquisitions; “current net gearing ratio will be approximately 16% based on the IPO proceeds, down from 33% right before IPO. We believe such a strong balance sheet should be able to help GLP in future acquisitions.”



Shares off 1.4% at $2.19.