Monday, December 23, 2013

Cache Logistics Trust : Clean transparent yields (DBSV)

Cache Logistics Trust
BUY S$1.07
STI : 3,067.57
Price Target: 12-Month S$1.33
Clean transparent yields

• Transparent earnings with minimal downside
• Acquisitions to re-rate earnings and stock
• BUY, TPS$1.33

Transparent earnings stream with minimal downside. With minimal renewals over the coming FY14F, Cache offers strong income visibility with minimal downside risks. A majority of its income will only be expiring in FY15/16F (mainly the master-leased IPO properties) of which the manager is actively engaging with the master lessees (CWT and C&P Limited) for renewal.

Acquisition growth to be a catalyst. With a conservative gearing ratio of 29.2% (below management’s long-term 35%-40% optimal level) and a visible pipeline from sponsor’s CWT/C&P, we believe that acquisitions are likely to feature, albeit at a more moderate rate than before. The manager remains highly selective and sees more interesting opportunities in overseas markets (Malaysia and China) rather than Singapore, where the landscape is competitive.

BUY, TP S$1.33. Valuations are attractive at a forward yield of 8.2-8.3% and a 1.1x P/BV. Catalysts will hinge on acquisitions, given its portfolio of mainly master leases.

Source/Extract/Excerpts/来源/转贴/摘录: DBSV-Research,
Publish date: 19/12/13

No comments:

Post a Comment

Note: Only a member of this blog may 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)

乔治·索罗斯(George Soros)



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,
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock