CIMB cuts Perennial China target

Stock Name: PerennialCRT
Company Name: PERENNIAL CHINA RETAIL TRUST

Research House: CIMB

Price Call: BUY

Target Price: 0.59

CIMB Research lowered its target price for Perennial China Retail Trust to $0.59 from $0.65, citing lower rents and slower-than-expected leasing activity.

Units of Perennial China, which owns shopping centres in China, shed 2% to $0.495, but have gained about 4% so far this year.

Perennial China reported that its distribution per unit for the first quarter was 3.81 cents, but CIMB said the trust’s profits from its joint entities came in below expectations due to weaker rental contributions.

The repositioning and leasing of Perennial China’s shopping malls in Shenyang, China, are likely to take effect in the fourth quarter and the start of 2013, CIMB said and retained its outperform rating on the stock.

   

Perennial China Retail Trust - Change in major shareholder

Stock Name: PerennialCRT
Company Name: PERENNIAL CHINA RETAIL TRUST

Research House: CIMB

Price Call: BUY

Target Price: 0.65

Target S$0.65

Change of shareholding saw PCRT's local partner offloading his stake in PCRT. Mr Kuok now holds a 17% stake. New additional earn-out amount negotiated with Summit Group buffers this negative news. We take comfort in greater certainty of higher dividend yields till 2014.

Source: CIMB Daybreak - 19 April 2012, Full PDF Report

CIMB starts Perennial China at outperform

Stock Name: PerennialCRT
Company Name: PERENNIAL CHINA RETAIL TRUST

Research House: CIMB

Price Call: BUY

Target Price: 0.65

CIMB Research has initiated coverage of Singapore-listed Perennial China Retail Trust, which owns shopping malls in China, at outperform with a target price of $0.65

By 9:11 a.m., units of PCRT were 2.8% lower at $0.530, and have gained about 12% so far this year.  

  
 

Perennial China Retail Trust rated 'buy' by DBS

Stock Name: PerennialCRT
Company Name: PERENNIAL CHINA RETAIL TRUST

Research House: DBS Vickers

Price Call: BUY

Target Price: 0.83

DBS Vickers Securities in a Mar 1 research report says: "PCRT reported a maiden distribution income of $26.4 million since listing on Jun 9, 2011, inclusive of earn out deed amount of $19.8 million. This translates to a DPU of 2.35 cents (annualized yield 6.9%).

"Meanwhile, the furniture mall is experiencing some teething hiccups as occupancy declined due to a slowdown in residential sales, which has affected demand for furniture. Occupancy stands at 56% as at Dec 11. It has also revalued its Shenyang assets up by 1.5-4.6%.

"Meanwhile, the Shenyang office component is schedule to commence operations in 4Q12. The Foshan development is likely to complete ahead of schedule and start operations by 1Q13 while the Chengdu Qingyang is on track to begin in 2Q14. Target price of 83 cents. MAINTAIN BUY."

Perennial China Retail Trust rated 'buy' by DBS

Stock Name: PerennialCRT
Company Name: PERENNIAL CHINA RETAIL TRUST

Research House: DBS Vickers

Price Call: BUY

Target Price: 0.83

DBS Vickers Securitie in a Feb 3 research report says: "In its last circular issued to unitholders, PCRT is seeking unitholders' approval for the acquisition of a 50% stake in Chengdu Longemont Mall (CLM) for RMB2.28 billion.

"The deal will not only enable PCRT to expand its asset base at an attractive price but will also strengthen its retail presence and tenant network in Chengdu. PCRT offers investors a strong total return derived from NAV growth as well as yield when its malls are gradually developed and ramped up.

"The portfolio is currently 41% operational by GFA, rising to 54% and 63% by end FY2012-FY2013 and fully ramped up by end FY14. At the current share price, the market is valuing PCRT's existing portfolio at below replacement cost, at cRMB6,320psm. Target price of 83 cents. MAINTAIN BUY."

Citi starts Perennial China at buy

Stock Name: PerennialCRT
Company Name: PERENNIAL CHINA RETAIL TRUST

Research House: Citigroup

Price Call: BUY

Target Price: 0.61

Citigroup has initiated coverage of Singapore-listed Perennial China Retail Trust (PCRT.SI), which owns shopping malls in China, at buy with a target price of $0.61.

Citi said Perennial China, which owns 4 retail malls and 2 office towers in the country, is a business trust that offers exposure to the China retail market.

“Amid market uncertainties, we believe Perennial China offers defensiveness through its retail exposure and recurring income,” said Citi in a report.

The brokerage said it expects Perennial China’s core net income to grow at an average annual rate of 38.2% in 2011-2014.

At 11:09 a.m., shares of Perennial China were flat at $0.51, and have fallen about 16.4% since it made its debut in Singapore in June.