Wheelock Properties rated 'hold' by AmFraser

Stock Name: Wheelock
Company Name: WHEELOCK PROPERTIES (S) LTD

Research House: AmFraser

Price Call: HOLD

Target Price: 1.78

AmFraser Research in a May 15 research report say: "Wheelock reported net profit slumped 75% to $13 million for 1QFY12. Results were below expectations meeting 9% of consensus estimates and 7% of our FY2012F forecast. It was attributable to both lower unit sales and completion of Scott’s Square in 3QFY11.

"Partially negating the above was a 4% y-o-y improvement in gross margin to 69%. Wheelock ends 1QFY12 with a net cash position of $780 million. Cash holding would have been higher if not for the S$113mil debt drawdown for acquisition of five sites in Fuyang City, China and construction progress of Ardmore Three.

"We have revised our RNAV estimates 6% lower at $1.78 per share factoring in a slower sales rate for Wheelock’s high-end projects. Our fair value stands at parity to our RNAV estimates. MAINTAIN HOLD."

UOBKH - SIN: Summary Stock Recommendations

Stock Name: Capitaland
Company Name: CAPITALAND LIMITED

Research House: UOB KayHian

Price Call: BUY

Target Price: 3.40

Stock Name: CITYDEV
Company Name: CITY DEVELOPMENTS LIMITED

Research House: UOB KayHian

Price Call: SELL

Target Price: 9.20

Stock Name: GuocoLand
Company Name: GUOCOLAND LIMITED

Research House: UOB KayHian

Price Call: HOLD

Target Price: 2.10

Stock Name: Ho Bee
Company Name: HO BEE INVESTMENT LIMITED

Research House: UOB KayHian

Price Call: BUY

Target Price: 1.75

Stock Name: KepLand
Company Name: KEPPEL LAND LIMITED

Research House: UOB KayHian

Price Call: BUY

Target Price: 3.60

Stock Name: OUE Ltd
Company Name: OVERSEAS UNION ENTERPRISE LTD

Research House: UOB KayHian

Price Call: BUY

Target Price: 2.90

Stock Name: SCGlobal
Company Name: SC GLOBAL DEVELOPMENTS LTD

Research House: UOB KayHian

Price Call: HOLD

Target Price: 1.30

Stock Name: Wheelock
Company Name: WHEELOCK PROPERTIES (S) LTD

Research House: UOB KayHian

Price Call: HOLD

Target Price: 2.00

Stock Name: Wing Tai
Company Name: WING TAI HLDGS LTD

Research House: UOB KayHian

Price Call: BUY

Target Price: 1.50

Stock Name: Ascendasreit
Company Name: ASCENDAS REAL ESTATE INV TRUST

Research House: UOB KayHian

Price Call: SELL

Target Price: 1.90

Stock Name: AscottREIT
Company Name: ASCOTT RESIDENCE TRUST

Research House: UOB KayHian

Price Call: BUY

Target Price: 1.25

Stock Name: CACHE
Company Name: CACHE LOGISTICS TRUST

Research House: UOB KayHian

Price Call: BUY

Target Price: 1.10

Stock Name: CapitaComm
Company Name: CAPITACOMMERCIAL TRUST

Research House: UOB KayHian

Price Call: HOLD

Target Price: 1.15

Stock Recommendations

			Price	Target	Upside/	Market	Curr	Fwd	Curr	Fwd	Book	Price/		Fwd	Net
Company	Ticker	Rec	18-Apr-12	Price	(Downside)	Cap.	PE	PE	Yield	Yield	NAV ps	Book	RNAV ps	ROE	Gearing *
			(S$)	(S$)	to TP (%)	(US$m)	(x)	(x)	(%)	(%)	(S$)	(x)	(S$)	(%)	(%)
Developers
CapitaLand	CAPL SP	BUY	2.93	3.40	16.0	9,950.6	17.6	13.0	2.4	2.7	3.51	0.83	4.27	4.7	30.8
City Devt	CIT SP	SELL	10.45	9.20	(12.0)	7,592.6	12.1	14.1	1.7	1.4	7.51	1.39	11.52	9.7	20.7
GuocoLand	GUOL SP	HOLD	1.9	2.10	10.5	1,796.5	10.8	6.1	4.7	4.7	2.08	0.91	2.98	8.4	168.1
Ho Bee	HOBEE SP	BUY	1.37	1.75	27.7	771.9	4.9	7.0	2.9	2.2	2.34	0.59	2.28	8.4	27.1
Keppel Land	KPLD SP	BUY	3.34	3.60	7.8	3,979.0	13.9	10.1	3.0	3.0	3.64	0.92	4.83	6.4	10.4
OUE	OUE SP	BUY	2.33	2.90	24.5	1,694.1	6.3	15.5	5.6	3.0	3.21	0.73	3.86	4.5	57.9
SC Global	SCGD SP	HOLD	1.055	1.30	23.2	349.5	3.3	4.0	1.9	1.9	1.59	0.66	2.19	15.3	170.3
Wheelock	WP SP	HOLD	1.795	2.00	11.4	1,716.2	7.4	12.4	3.3	3.3	2.42	0.74	2.67	5.9	(31.8)
Wing Tai	WINGT SP	BUY	1.255	1.50	19.5	783.0	4.9	5.8	4.0	3.2	2.43	0.52	2.16	10.0	24.1
REITs
Ascendasreit	AREIT SP	SELL	2.04	1.90	(6.9)	3,398.8	15.5	15.1	6.6	6.8	1.88	1.09	1.88	7.2	36.2
AscottREIT	ART SP	BUY	1.095	1.25	14.2	990.9	15.8	15.5	7.8	8.0	1.36	0.80	1.35	5.1	35.0
CACHE	CACHE SP	BUY	1	1.10	10.0	558.4	14.3	14.1	7.8	8.0	0.93	1.08	0.93	7.9	27.7
CapitaComm	CCT SP	HOLD	1.235	1.15	(6.9)	2,798.4	18.3	16.9	6.1	6.4	1.60	0.77	1.40	4.5	21.3
CapitaMall	CT SP	BUY	1.84	2.10	14.1	4,894.7	20.6	18.9	5.3	5.8	1.59	1.16	1.58	5.7	28.0
CDL Htrust	CDREIT SP	HOLD	1.875	1.85	(1.3)	1,445.5	18.0	17.9	5.7	5.8	1.60	1.17	1.60	6.5	21.9
FrasersCT	FCT SP	BUY	1.55	1.75	12.9	1,018.7	17.9	16.8	5.9	6.3	1.42	1.10	1.40	6.2	29.7
Frasers Comm	FCOT SP	BUY	0.88	0.93	5.7	448.5	16.7	14.1	7.3	8.4	1.35	0.65	1.56	3.6	32.1
K-REIT	KREIT SP	HOLD	1.0	0.95	(5.0)	2,039.4	23.3	21.4	7.5	7.3	1.27	0.79	0.68	5.2	36.1
MapletreeInd	MINT SP	BUY	1.13	1.30	15.0	1,470.7	14.8	14.3	7.3	7.4	0.96	1.18	0.92	8.6	34.7
MapletreeLog	MLT SP	BUY	0.97	1.05	8.2	1,880.6	13.2	12.7	7.1	7.2	0.86	1.13	1.01	7.9	37.7
PLife REIT	PREIT SP	BUY	1.865	2.05	9.9	901.5	18.9	18.2	5.2	5.6	1.48	1.26	1.52	6.6	32.1
Sabana REIT	SSREIT SP	HOLD	0.975	0.90	(7.7)	496.5	11.3	11.8	9.7	9.4	1.07	0.91	1.07	8.1	30.3
Starhill Gbl	SGREIT SP	BUY	0.64	0.70	9.4	993.6	13.9	13.3	6.7	7.0	0.86	0.74	0.89	5.2	26.7
Suntec REIT	SUN SP	BUY	1.255	1.35	7.6	2,237.7	16.5	17.5	7.4	7.1	1.99	0.63	1.97	3.9	35.9

Source: Bloomberg, UOB Kay Hian

UOB downgrades Wheelock to hold

Stock Name: Wheelock
Company Name: WHEELOCK PROPERTIES (S) LTD

Research House: UOB KayHian

Price Call: HOLD

Target Price: 2.00

UOB Kay Hian cut its rating on Wheelock Properties (Singapore) to hold from buy and retained its target price at $2.00, citing a rally in its shares this year and a cloudy outlook for luxury homes.

Shares of Wheelock were 0.5% lower at $1.875, and have gained 24% so far this year.

At Wheelock’s current share price, UOB estimates the market has priced in expectations of a possible privatisation of the company.

Despite a pick up in overall Singapore’s home sales in the first two months of the year, sentiment in the luxury market segment remain depressed and may hurt Wheelock, whose entire residential project inventory in Singapore is in the high-end, UOB said in a note.

The broker said foreigners, who account for about 30-50% of buyers in the luxury segment, are likely to remain on the sidelines amid volatile global economic conditions and additional buyer stamp duties in Singapore.

 

Wheelock Properties (S) rated 'neutral' by CIMB

Stock Name: Wheelock
Company Name: WHEELOCK PROPERTIES (S) LTD

Research House: CIMB

Price Call: HOLD

Target Price: 1.79

CIMB in a Mar 20 research report says: "During its recent analysts’ briefing, we sense status quo, as the group remains cautious on acquisitions and retains its Singapore-residential focus. Deploying capital in China remains viable.

"Privatisation is also possible, though less compelling at current valuations. Wheelock’s cash hoard provides it with the financial muscle to stomach large acquisitions, we believe. As such, it faces no lack of options, though finding the right targets may prove difficult.

"We raise FY2012-2014 EPS and RNAV on lower cap rates and less-bearish ASPs for residential developments. A higher target price of $1.79 (still at 30% discount to RNAV) following our RNAV upgrade. MAINTAIN NEUTRAL."

Wheelock Properties (S) - Status quo?

Stock Name: Wheelock
Company Name: WHEELOCK PROPERTIES (S) LTD

Research House: CIMB

Price Call: BUY

Target Price: 1.79

Target S$1.79

During its recent analysts' briefing, we sense status quo, as the group remains cautious on acquisitions and retains its Singapore-residential focus. Deploying capital in China remains viable. Privatisation is also possible, though less compelling at current valuations. We raise FY12-14 EPS and RNAV on lower cap rates and less-bearish ASPs for residential developments. Maintain Neutral with a higher target price (still at 30% discount to RNAV) following our RNAV upgrade.

Source: CIMB Daybreak - 20 March 2012, Full PDF Report

Wheelock Properties rated 'neutral' by CIMB

Stock Name: Wheelock
Company Name: WHEELOCK PROPERTIES (S) LTD

Research House: CIMB

Price Call: HOLD

Target Price: 1.67

CIMB in a Feb 21 research report says: "4Q core EPS is below expectations at 10%/13% of our/consensus forecasts (FY2011 at 91%) due to vacancy at Wheelock Place and higher taxes.

"Lower recognition of development sales in 4Q11 was a drag on FY2011 revenue, as Scotts Square was the only property completed in the year and new sales remained slow. Development profits were down 30% y-o-y. No new units at Orchard View and Scotts Square have been sold since Dec 11.

"Despite a stronger net-cash position ($921 million) from proceeds from development properties, we see limited opportunities for tapping its strong balance sheet. We still see little upside at 0.7x P/BV, given policy headwinds.

"We introduce FY2014 and adjust FY2012-2013 EPS on slower sales and higher rents. Target price of $1.67. MAINTAIN NEUTRAL."

CIMB: Wheelock Properties (S) - Marks & Spencer picked up slack

Stock Name: Wheelock
Company Name: WHEELOCK PROPERTIES (S) LTD

Research House: CIMB

Price Call: HOLD

Target Price: 1.67

WheelockProperties (S) - Marks & Spencerpicked up slack


Target S$1.67


Core net profit was down as the recognition of sold residential units was unable to buffer the slowdown in new sales in 4Q11. Management expects property cooling measures to affect revenue in 2012. Vacancy at Wheelock Place limited positives from Scotts Square retail.

Wheelock Properties (S) downgraded to 'neutral' by CIMB

Stock Name: Wheelock
Company Name: WHEELOCK PROPERTIES (S) LTD

Research House: CIMB

Price Call: HOLD

Target Price: 2.39

CIMB in an Aug 2 research report says: "2Q11 core net profit of S$37.2m (-55% yoy) forms just 14% of our full-year estimate and is also below consensus estimate. 1H11 core net profit accounts for 34% of our figure. The variance was attributable to zero new sales at Orchard View in 2Q11 and slower recognition of Scotts Square.

"Factoring in slower sales for its residential projects, we adjust our FY11-13 core EPS estimates by -38/+17% and reduce our target price to S$2.06 from S$2.39, now pegging the stock at a larger 20% (previously 10%) discount to RNAV in view of limited catalysts.

"While Wheelock's value is underpinned by its large cash hoard, there is a seeming lack of lucrative acquisition opportunities locally while its high-end residential sales are not picking up. DOWNGRADE TO NEUTRAL."

Wheelock Properties (S) rated 'outperform' by CIMB

Stock Name: Wheelock
Company Name: WHEELOCK PROPERTIES (S) LTD
Research House: CIMB

CIMB in a Feb 22 research report says: "FY2010 core net profit of $257.1 million (+66% y-o-y) met expectations, at 98% of our forecast and 103% of the Street's. 4Q10 core net profit of $49 million is 19% of our FY2010 number.

Read more...