CDL Hospitality Trusts (BUY; Target Price: S$2.00) Visitor arrivals maintained strong growth of 13.4 per cent YoY in January 2012 to reach 1.2 million. In that month, arrivals from the three largest countries of origin, namely Indonesia, China and Malaysia, saw solid increases. These countries accounted for 40 per cent of all visitor arrivals last...

Ascendas REIT (BUY; Target Price: S$2.30) Cache Logistics Trust (BUY; Target Price: S$1.19) Mapletree Logistic Trust (BUY; Target Price: S$1.20) The acquisition momentum in the industrial REIT subsector has panned out according to our expectations as communicated in our February sector report. Following Ascendas REIT’s proposed acquisition of three properties at Science Park Drive in...

Cosco Corp (SELL; Target Price: S$0.72) While Cosco’s FY11 net profit decline of 44 per cent to S$139.7 million despite an 8 per cent pickup in revenue came as no particular surprise to the market, its share price has been resilient and valuations have stayed rich. However, we believe that market optimism on the stock...

Fortune REIT (BUY; Target Price: HK$4.88) Two shopping mall properties, Belvedere Garden and Provident Centre, were recently acquired in February for HK$1.9 billion. The yield-accretive acquisition was funded by debt. There is much potential for Fortune to improve their monthly passing rents of HK$16.5-19.5 psf (versus HK$32.2 psf for the original portfolio). Like the other...

Ezra Holdings (NEUTRAL; Target Price: S$1.18) Last Friday, Ezra entered into an agreement to place out 110 million new shares at S$1.10 per share to raise a net proceed of S$118.8 million. The number of new shares was 12.7 per cent of the existing shares and the placement price was a 9 per cent discount...

Ezra Holdings (HOLD; Target Price: S$1.28) Following its trading halt on Friday, Ezra Holdings announced that it has entered into a placement agreement with Credit Suisse and DBS Bank in order to raise capital. 110 million shares (12.7 per cent of existing share capital) will be placed to institutional and other investors, as well as...

Ezion Holdings (BUY; Target Price: S$1.17) Ezion’s latest US$65.7 million charter contract in China takes its total new charters secured in 2012 to US$357 million. In total, we estimate that Ezion will spend US$300-310 million to complete the four liftboat and service rig projects and this will be financed by the recent placement of 110...

Adampak Limited (Not Rated) Adampak suffered a small after-tax loss of S$0.2 million in 4Q11, which included S$2 million in impairment charges for damaged fixed assets and inventory, as well as idle production costs. December-quarter revenue tumbled by 27 per cent YoY as sales to the HDD (hard disk drive) and telecommunications segments were affected...

Keppel Land (BUY; Target Price: S$4.00) In January, KepLand said that it had acquired a 51 per cent stake in a prime commercial project in Beijing’s Chaoyang CBD, with an estimated breakeven of RMB20,000 psm GFA. After reviewing our earlier forecasts, we raise our capital value assumption for the office component to RMB50,000 psm, which...

BBR Holdings (BUY; Target Price: S$0.38) 4Q11 earnings came in within our expectations at S$2.9 million. Revenue was up 55.7 per cent YoY, mainly attributable to revenue progressively recognised for sold units from its property development Lush on Holland Hill and the various on-going construction projects in their active stage of construction. While gross profit...