OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: Ying Li
Company Name: YING LI INTL REAL ESTATE LTD

Research House: UOB KayHian

Price Call: BUY

Target Price: 0.65

Market Compass

27 March 2013~ Good Morning Singapore!

Singapore Idea Snippets:

27 March 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 : Faced with what is right, to leave it undone shows a lack of courage. -CONFUCIUS Singapore: The Day Ahead SINGAPORE DAYBOOK: Regional real estate gets Morgan Stanley downgrade. Report gives low profitability and weak technicals as reasons for rating. MORGAN Stanley downgraded the regional real estate sector from "overweight" to "equal-weight" in its latest report. Citing the sector's low profitability and weak technicals, the report on Monday said: "Although still having cheap valuation, its current trailing return on equity is the second worst among all the 24 industry groups." "Real estate also ranks badly in terms of technical indicators like price momentum and fund flow... We observe relatively crowded fund flow going into the real estate industry recently... which is one of the drags on real estate to equal-weight from previous overweight," the report added. MARKET SCOOP Eastern Hldgs invests $10m in Asian securities Chuan Hup unit prematurely terminates JTC leases Olam opens new almond processing plant in Australia Retail unit size must average minimum 50 sq m from Wed S'pore industrial production plunges 16.6% yoy in Feb UBS asks S'pore court to seal cases of two fired traders CIMB Securities says... RAFFLES MEDICAL GROUP | OUTPERFORM | TP: S$3.81 RFMD had been hit by a series of setbacks in the last two weeks The group's re-application for a new proposed specialist centre in Orchard Road (Thong Sia Building, 30 Bideford Road) has not been successful Also, its bid for a new Hong Kong hospital lost out to IHH Healthcare two weeks back The group's existing efforts to upsize Raffles Hospital for another 100,000 sf of space should now take centrestage In terms of greenfield projects, RFMD will probably focus on its JV with China Merchant Bank to develop a Shenzhen hospital We understand that the investment may cost RFMD S$150m for its share of the JV The group can now fund its Chinese hospital by possibly selling its Orchard Road property, since the latter's development for healthcare use has been blocked We lift our target to 25x CY14 P/E (from 22x) to reflect its proven execution that should place it on par with its regional peers UOB KAY HIAN says... YING LI INTERNATIONAL | BUY | TP: S$0.65 The stock is currently trading at a 46% discount to its RNAV despite gaining 21.6% ytd New CEO could raise the profile of Ying Li. We are excited about the company's recent appointment of Mr Ko Kheng Hwa as Group CEO Sell-down unwarranted due to Ying Li's limited exposure to residential properties Ying Li has plans to transfer its retail malls into a trust vehicle for listing to monetise the assets and recycle the capital RNAV surprises will come from Wuyi Rd project and San Ya Wan phase 2 Ying Li will recognise the entire sales proceeds from International Plaza and book in the profits this year Key risks that could impede the stock from reaching our target price include: a) delays in the recognition of its properties, and b) regulatory measures to cool the property market Our targeted price is based on a 21.8% discount to our RNAV of S$0.83/share DMG OSK Securities says... CAPITACOMMERCIAL TRUST | NEUTRAL | TP: S$1.70 We visited CapitaGreen's showroom yesterday morning and were wowed by its: i) 40th-floor sky garden and restaurant, ii) innovative technology which directs cool air inwards, and iii) unique dual façade that cuts solar heat Set to be CCT's next growth driver, it offers c. 700,000 sq ft of Grade-A office space and is scheduled to receive its TOP by 4Q14 Unique design helps save on utility cost and strategic location a key selling point CapitaGreen is a joint development by CapitaLand, CCT and Mitsubishi Estate Asia In this project, CCT owns 40% equity interest as well as a call option to acquire the remaining 60% within three years upon receiving its temporary occupancy permit (TOP) We expect the building, involving a total development cost of SGD1.4bn, to generate a forecast yield of 5.1%-6.3% when occupancy stabilizes

Ying Li Int'l Real Estate rated 'buy' by DBS

Stock Name: Ying Li
Company Name: YING LI INTL REAL ESTATE LTD

Research House: DBS Vickers

Price Call: BUY

Target Price: 0.51

DBS Vickers Securities in a May 15 research report says: "Revenue increased four-fold to Rmb121 million. This was largely due to recognition of IFC office sales and 25% y-o-y increase in rental income IFC rental income started to flow in.

"Due to a 220% increase in gross profit to Rmb50.5 million on higher revenue, Ying Li turned from a loss in 1Q11 to a profit of Rmb5.5 million in 1Q12. Excluding a one-off nonrecurring administrative expense, net profit would have been Rmb12.5 million. Ying Li is also executing well on the pre-sales of the residential portion of the Daping project, with more launches to come.

"Ying Li is currently trading at 68% discount to its RNAV, which we see as an attractive entry level. Target price of 51 cents (40% discount to RNAV). MAINTAIN BUY."

Ying Li International rated 'buy' by DBS

Stock Name: Ying Li
Company Name: YING LI INTL REAL ESTATE LTD

Research House: DBS Vickers

Price Call: BUY

Target Price: 0.52

DBS Vickers Securities in a Feb 8 research report says: "Chongqing, touted as 'the next Shanghai' has been attracting new projects by prominent Asian property developers. As an incumbent and early entrant, Ying Li is well positioned to ride on Chongqing's economic growth and rising importance as Western China's gateway city.

"With Ying Li's IFC completed and progressing well, next focus is on Da Ping and Chongqing Financial Street projects. There is more upside from current valuation at c. 55% discount to RNAV. Ying Li has good execution record for its projects.

"Catalysts for re-rating include (a) potential 12 cents per share revaluation gain on IFC and (b) higher sales and rental income from its ongoing projects. Target price of 52 cents (based on 40% discount to RNAV). MAINTAIN BUY."

Ying Li soars on bullish DBS Vickers report

Stock Name: Ying Li
Company Name: YING LI INTL REAL ESTATE LTD

Research House: DBS Vickers

Price Call: BUY

Target Price: 0.325

Shares of Singapore-listed Chinese property developer Ying Li International Real Estate surged as much as 12% to a six-month high after stockbroker DBS Vickers issued a bullish report on the firm, reported Reuters.

By 10:41 a.m. on Friday, Ying Li shares were 9.2% higher at $0.355 with 44.4 million shares traded. This was 4.3 times its average daily volume over the last five sessions.
The completion of two of Ying Li’s projects in the western Chinese city of Chongqing — the International Financial Centre shopping mall and its Da Ping mixed development, will boost property sales and rental income significantly in 2012 and 2013, DBS said in a report.

Ying Li offers a niche exposure to Chongqing and an expected large revaluation gain on the International Financial Centre will provide catalysts for the stock to re-rate, the brokerage added.

 

It has a buy rating with a target price of $0.325. 

Ying Li International Real Estate rated 'buy' by Kim Eng

Stock Name: Ying Li
Company Name: YING LI INTL REAL ESTATE LTD

Research House: Kim Eng

Price Call: BUY

Target Price: 0.50

Kim Eng Research in a Jan 25 research report says: "Ying Li recently said that it has won the tender for a strategic plot of land in Chongqing Financial Street (CQFS) for RMB50.35 million (excluding resettlement cost).

"The 5,452-sq-m Wei Yuan site sits next to its existing Wu Yi Road landbank and the group is in advanced discussions with the authority to enlarge the combined land area of the project to about 17,000 sq m. Separately, Ying Li has had a soft opening of Yingli IFC retail mall late last month, where the committed occupancy rate to-date has already exceeded 80%.

"The mall showcases both internationally and domestically renowned brands, some of which have chosen to open their flagship stores there. Target price is unchanged at 50 cents, still pegged at a 40% discount to the stock's RNAV per share of 83 cents. MAINTAIN BUY."

Ying Li International rated 'buy' by DBS

Stock Name: Ying Li
Company Name: YING LI INTL REAL ESTATE LTD

Research House: DBS Vickers

Price Call: BUY

Target Price: 0.52

DBS Vickers Securities in a July 8 research report says: "Ying Li recently announced that it has topped out its IFC building, and with secured sales of 20,000sqm of office space and some prominent tenants for its retail space, the Group is moving closer to fully crystallizing the value of this project.

"We estimate that the gain in fair value upon completion of the IFC alone could be worth as much as 14 cents per share, which means the stock would be trading at c. 1x P/BV if it remains at this level in six months time. At nearly 60% discount to RNAV currently, upside risk is much higher than downside risk.

"The successful launch of the IFC and other projects would act as further catalysts for Ying Li's share price to re-rate. Target price of 52 cents (40% discount to RNAV of 87 cents). MAINTAIN BUY."

Ying Li Int'l Real Estate rated 'buy' by DBS

Stock Name: Ying Li
Company Name: YING LI INTL REAL ESTATE LTD
Research House: DBS Vickers

DBS Vickers Securities in a Mar 24 research report says: "Ying Li has sold c.16,000sqm of office space at the IFC at a better than expected average price of RMB24,000 per sqm, with a further 4,000sqm to be sold.

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IIFL initiates Ying Li International at Buy

Stock Name: Ying Li
Company Name: YING LI INTL REAL ESTATE LTD
Research House: IIFL

IIFL initiates Ying Li International (5DM.SG) at Buy with a $0.49 target price. It says Ying Li “is uniquely placed among Chinese developers, with a record of over 17 years in developing landmark commercial buildings in Chongqing,” which the house describes as “the pearl of western China.” 

It says Chongqing is the world’s most populous city, with a population of 28.3 million and its GDP growth exceeded 16% in 2010. In addition, the urbanization rate is still at 52% (as compared to 80%-90% in Beijing and Shanghai), with the government’s target to reach 70% by 2020: “this presents a huge opportunity for property investors.” 

It notes Ying Li currently holds around 1 million square metres of land, which is due for completion in phases over the next 3-4 years. “Funding is in place for development and acquisition plans till 2012. We estimate rental income will grow by 6X and adjusted net profit by 18X over the next two years.” 

Shares are off 1.4% at $0.365.

Ying Li Int'l Real Estate rated 'increase exposure' by SIAS Research

Stock Name: Ying Li
Company Name: YING LI INTL REAL ESTATE LTD
Research House: SIAS

SIAS Research in a Mar 8 research report says: "Ying Li Int'l Real Estate ended 2010 impressively with a fourth quarter net attributable profit of RMB256 million as a result of fair value gains from the International Financial Center (IFC) retail podium.

Read more...

Ying Li - Ying Li target cut to $0.52 by DBS Vickers

Stock Name: Ying Li
Company Name: YING LI INTL REAL ESTATE LTD
Research House: DBS Vickers

DBS Vickers has cut Ying Li International (5DM.SG) target price to $0.52 from $0.67, based on 40% discount to reduced RNAV estimate, to account for lower rental assumptions, according to Dow Jones.



DBS Vickers notes China-based developer’s rental rates, especially for retail space, could take up to 3 years to ramp up before tenant mix optimised.

Expects FY10 RMB55 million ($11 million) net loss vs RMB62 million profit tipped previously, FY11 profit of RMB299 million vs RMB705 million profit initially, to reflect delay in launch of Daping project by 6-9 months as Ying Li redesigns development plan in bid to fetch higher prices.



Still, keeps Buy call on significant upside to revised target from current levels. Shares flat at $0.395.

Ying Li - Ying Li cut to Hold by Kim Eng; $0.43 target

Stock Name: Ying Li
Company Name: YING LI INTL REAL ESTATE LTD
Research House: Kim Eng

Kim Eng Securities downgrades Ying Li International (5DM.SG) to Hold from Buy, cuts target price to $0.43 from $0.62, pegged at 40% discount to RNAV estimate, says Dow Jones.



Changes based on lower rental, average selling price assumptions for China-based property developer. Says delay in launch of residential component of Ying Li’s Da Ping project to end-2011 from end-2010, due to design changes, was disappointing.



Adds take-up for retail space of company’s commercial project IFC seems slow. Shares now flat at $0.400.

Ying Li - Ying Li downgraded to Sell by DMG with $0.33 target

Stock Name: Ying Li
Company Name: YING LI INTL REAL ESTATE LTD
Research House: DMG

DMG downgrades Ying Li International (5DM.SG) to Sell from Neutral, cuts target price to $0.33 from $0.42 based on 50% discount to RNAV estimate, says Dow Jones.



“We think Ying Li’s uncertain earnings visibility will cap share price upside,” says DMG.

Research house notes China-based property developer’s 2Q10 RMB21.4 million ($4.3 million) net loss, due to higher admin and interest costs, lower revenue contributions from property sales.



DMG flags project delay as risk to bottomline improvement, with Ying Li postponing launch of residential component of its Da Ping project to 2H11 from 2H10 on yet-to-be finalised designs, expected higher capital values in FY11.



Shares flat at $0.405.