Monday, December 2, 2013

China Merchants Hldgs (Pacific) : Full speed ahead (DBSV)

China Merchants Hldgs (Pacific)
BUY S$0.9􀀏􀀔
STI : 3,172.85
Price Target: 12-Month S$1.20 (Prev S$1.07)

• Raise FY13 and FY14 estimates by 10% and 11% respectively, to factor in better traffic numbers and lower finance costs
• Steady traffic growth and early repayment of loans to drive firm organic earnings expansion
• Sale of NZ property business to further strengthen the Group’s balance sheet
• Maintain BUY, TP raised to S$1.20

Strong earnings performance thus far. For 9M13, CMH’s net profit improved by 40% y-o-y to HK$450m, driven by better earnings from all its roads, as well as new contribution from Ningbo-Beilun Port E’way, which was acquired in 2H12. Factoring in better-thanexpected traffic numbers and lower-than-expected finance costs thus far, we raised our FY13 and FY14 estimates by 10% and 11% respectively.

Prospects remain bright. We believe that traffic on the Group’s toll roads will grow at a mid to high singledigit pace over the next few years, and with lower finance costs from the swift repayment of loans, core earnings is poised to improve steadily in FY14. Profit in FY15, however, is expected to flatten out due to a lower share of profit from Guihuang Highway and cessation of subsidy income. Completion of the sale of the Group’s NZ property business will also further boost its coffers, and allow room for potentially more acquisitions.

TP raised to S$1.20; Maintain BUY. We increase our DCF-based (WACC 9.1%) target price to S$1.20 due to our higher earnings estimates and lower WACC assumptions. The stock offers an attractive dividend yield of 6.3% and is trading at just 8.8x core fullydiluted FY13 PE, or 7.7x FY14 PE.

Source/Extract/Excerpts/来源/转贴/摘录: DBSV-Research,
Publish date:25/11/13

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)

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