Wednesday, October 30, 2013

Ascendas India Trust : Rupee weakness (DBSV)

Ascendas India Trust
HOLD S$0.66
STI : 3,205.24
Price Target : 12-Month S$ 0.73 (Prev S$ 0.75)
Rupee weakness

Rupee weakness
• Strengthening SGD-INR continues to be a drag on earnings
• Development of Aviator on track, 100% of space committed
• HOLD, TP revised to S$0.73

Highlights
Weak Rupee remains a drag. In INR terms, Ascendas India Trust (aitrust)’ s underlying operational performance remained fairly stable, with total property income increasing 1% to INR 1.4bn. This was due to higher portfolio occupancy rates of c97%, supported by high retention rates of c95%.
Net property income (NPI) fell by a greater 5% to INR 801m due to higher utilities costs as a result of rising fuel costs. Interest income increased by INR 68.1m due to contribution from aVance’s Fully Compulsory Convertible Securities (FCCDs), derived from its investment in the third aVance Building. Interest cost was 16% lower y-o-y (or INR 28.6m) due to repayment of debt. Due to an 11% appreciation of the SGD against the INR, a-itrust’s gross revenues and NPI declined by 9% and 14% y-o-y to S$28.9m and S$16.4m respectively. Distributable income after 10% retention was higher by 8% y-o-y to S$10.0m. DPU of 1.10 Scts was 8% lower yo- y due to an enlarged share base.

Our View
Construction of Aviator on track; pre-commitments at 100%. Construction of Aviator, a 601,630 sqft development in ITPB’s SEZ, remains on track with pre-commitment of space at 100%, reducing execution risk for this development. The property is 85% completed and is expected to achieve completion by end of 2013 (3QFY14) and we expect this property (forming c8.6% of the portfolio NLA) to underpin the longer term earnings growth potential.

Low gearing of 21% opens opportunities for growth. We believe that the Manager continues to look for growth opportunities to gear the trust back towards the 30-35% comfort level in the medium term, implying a headroom of up to S$200m. a-itrust’s portfolio has opportunities for development – there is c1.9m of additional NLA at its SEZ at ITPB - and there are asset injection opportunities from its sponsor (Ascendas Land International (Cybervale, IT Park Pune) and Ascendas India Development.

Recommendation
HOLD, TP revised to S$0.73. The expected continued weakness of the INR-SGD will continue to be a drag on earnings and cap re-rating potential. HOLD call maintained, TP revised to S$0.73 as we adjust our INR estimates slightly.



Source/Extract/Excerpts/来源/转贴/摘录: DBSV-Research,
Publish date: 28/10/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock