Treasury China Trust rated 'invest' by SIAS

Stock Name: TCT
Company Name: TREASURY CHINA TRUST

Research House: SIAS

Price Call: BUY

Target Price: 2.40

SIAS Research in a Nov 1 research report says: "Treasury China Trust's (TCT) 3Q FY11 results were slightly above our expectations, with revenue rising 6.8% q-o-q to RMB127.3m while net property income rose 9.6% q-o-q to RMB80.0 million.

"Rental income across all five income producing assets increased, particularly Huai Hai Mall, Treasury Building and City Centre (rebranded as the HQ) which rose 155%, 7.2% and 5.2% respectively. 3Q net property income climbed as property operating expenses only inched up 2.2% q-o-q for the period.

"We are pleased with the recent rental uplift and occupancy rate despite the economic uncertainty in August and had lowered the company's cost of equity to 9.1%. Intrinsic value of $2.40. MAINTAIN INVEST."

Treasury China Trust rated 'invest' by SIAS

Stock Name: TCT
Company Name: TREASURY CHINA TRUST

Research House: SIAS

Price Call: BUY

Target Price: 2.30

SIAS Research in a July 6 research report says: "Treasury China Trust (TCT) announced the completion of the acquisition of Huai Hai Mall. The acquisition settlement is largely the same as the February SGX announcement - final settlement price of RMB574.1 million versus February's RMB575 million.

"We conservatively project this asset to generate RMB34.3 million gross revenue for TCT in FY2015F, forming 2.5% of the total FY2015F gross revenue.

"Consequently, we revised our intrinsic value from $2.21 to $2.30. TCT is likely to proceed with more projects going forward, probably in the first tier and second tier cities' retail space. MAINTAIN INVEST."

SIN: CIMB TraderAM - Q&M Dental Group

Stock Name: Q&M Dental
Company Name: Q & M DENTAL GROUP (S) LIMITED

Research House: CIMB

Price Call: BUY

Target Price: 0.98

Stock Name: ST Engg
Company Name: SINGAPORE TECH ENGINEERING LTD

Research House: CIMB

Price Call: BUY

Target Price: 3.88

Stock Name: TCT
Company Name: TREASURY CHINA TRUST

Research House: CIMB

Price Call: BUY

Target Price: 3.38

15 June 2011 / Singapore

Trades of the Day...

Fundamentally:

When was the last time you saw your dentist?- Not yesterday at our Corporate Focus Series Lunch Talk we hope. Well, even if it was, the dentists at Q&M (QNM SP; S$0.83, BUY, TP S$0.98)had good news for you. China expansion remains on track and IFC recently gave QNM its vote of confidence by taking a stake in the dental Group.

What's Relevant...

Singapore's lack of market moving newsflow in saw the STI ending just 1.65 points lower yesterday. Top 20 actives saw familiar names, Genting Singapore, Golden Agri, Cosco Corp and Dyna-Mac.Technically, the chart suggests that the index could push higher towards 3,180 though low trading volumes are a negative. No reason for the STI not to open higher given the positive close on the US markets overnight.

Corporate News...

STX OSV. Faster-than-expected improvements in North Sea demand reaffirm our belief in a stronger order momentum for STX OSV in 2H11. Longer-term, STX OSV's growth is underpinned by booming Brazil demand. Take note that the North Sea rebound is not merely seasonal. It signals a sustained recovery. Our FY11 order target of NOK10bn (excluding Transpetro orders) has a high chance of being achieved. OUTPERFORM, Target Price S$1.70, based on 11x CY12 P/E (15% discount to rigbuilders' 5-year mean). ST Engineering has secured four AHTS orders worth S$171m from Swire Pacific. Vessels are expected to be delivered progressively from 1H13 to 1H14. Judging from the contract prices, we believe that the AHTS are of 12,000 bhp or in the medium class range. This order may seem surprising given that this asset class remains plagued by oversupply. However, we note that the medium class of AHTS consist only 3% of global AHTS fleet and is not as overcrowded as the smaller classes. Although a recovery in aviation MRO spending has somewhat been blunted by macro issues (Europe debt contagion, U.S growth concerns), we remain optimistic about a gradual recovery. Stronger quarters ahead and a pick-up in Aerospace could catalyse the stock. OUTPERFORM, Target Price S$3.88. Empty vessels make the loudest noise.Well, you'll sure be glad that Treasury China Trust is not one. The Company has been showing its confidence in its own business with unit buy backs recently. The latest was yesterday with 78,000 units bought back at S$2.00 per unit. So far, the Company has bought back 1.04% of its issued units. BUY, Target Price S$3.38.

Treasury China Trust rated 'invest' by SIAS

Stock Name: TCT
Company Name: TREASURY CHINA TRUST

Research House: SIAS

Price Call: BUY

Target Price: 2.21

SIAS Research in a June 1 research report says: "We made a trip to Shanghai and Qingdao late last week to visit five of Treasury China Trust's (TCT) assets (including Huai Hai Mall where the acquisition is not completed). All the assets were strategically located and the income producing assets' designs were better than expected.

"Management also shared with us their approach of seeking out undervalued assets that show promise of significant rental uplift. Though we like the company's assets and strategies, we are uncomfortable with the large retail space pipelines that are coming online in Shanghai and Qingdao over the next few years.

"Hence, we are increasing our cost of equity from 8.9% to 9.4% to take into account the risk factor. Intrinsic value of $2.21. MAINTAIN INVEST."

TCT - CIMB starts Treasury China at Buy, $1.83 target

Stock Name: TCT
Company Name: TREASURY CHINA TRUST
Research House: CIMB

CIMB starts Treasury China Trust (LG2U.SG) at Buy with $1.83 target price, based on 30% discount to $2.61 RNAV estimate, says Dow jones.



Says business trust is good proxy for China’s recovering commercial property market, especially in Shanghai, which expected to account for almost all of TCT's rental income for 2013. 

Notes management seeking to differentiate TCT from other Chinese retail players by focusing on large-scale projects such as malls instead of strata-titled type of retail formats, which are common in China; “this creates an alternative shopping experience that achieves international standards in terms of tenant choice and professional property management, which also underpins the strength of the recurrent earnings.” 

Shares last +0.7% at $1.49.