Friday, November 29, 2013

Ascott Residence Trust : Valuations reasonable, awaiting acquisition (CIMB)

Ascott Residence Trust
Current S$1.18
Target S$1.15
Valuations reasonable, awaiting acquisition

▊ ART’s share price has fallen c.9% since the announcement of its 1-for-5 rights issue and our subsequent downgrade. We think that most of the negatives have been priced in. The stock trades at 0.93x FY14 P/BV, in line with the 0.94x average of its peers and reasonable in our view. Our DDM-based target price (at discount rate of 8.5%) is unchanged at S$1.15. We upgrade ART to Neutral from Underperform, as we believe negatives from its rights issue have been mostly priced in. We also see potential acquisitions as re-rating catalysts.

 
What Happened
ART’s share price has declined c.9% since the announcement of its 1-for-5 rights issue (at 19.5% discount to the theoretical ex-rights price of S$1.24 and 23.7% to proforma net asset value of S$1.31) and our subsequent downgrade.  
 
What We Think
At 0.93x FY14 P/BV and 6.9% FY14 dividend yield, we think that ART’s valuations are reasonable and that the rights issue negatives have been priced in. Its improved net gearing of 34.3% and debt headroom of S$313m-640m (at 40-45% gearing) put ART in a better position to pursue potential acquisitions and asset enhancement initiatives. The potential acquisitions could be located in China, Japan, Malaysia or Australia, which are likely to have varying acquisition yields and withholding taxes. The acquisitions, expected to be announced by 1H14, could potentially lift its DPU. We have yet to factor them into our model due to a lack of clarity on asset and acquisition yields.  
 
What You Should Do
Investors should remain Neutral as ART’s valuations are reasonable at 0.93x FY14 P/BV and 6.9% FY14 dividend yield. Its peers are trading at an average of 7.3% FY14 dividend yield.




Source/Extract/Excerpts/来源/转贴/摘录: CIMB-Research,
Publish date: 27/11/13

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