Latest property cooling rules will barely hurt these 4 developers

Singapore is just ~9%  of their market.

According to CIMB, they expect this new policy event to lead to a sector wide sell-down in the near-term. In this scenario, the firm advocates accumulating the following names that are expected to be less affected by policy changes in the Singapore residential sector.

CapLand: Singapore residential segment accounts for only 9% of its GAV. The share price catalysts for CapLand in 1) recovering China volumes, 2) potential asset recycling moves, and 3) a potential restructuring of its business units, remain unchanged. CapLand remains our top big cap pick in the sector.

UOL: Singapore residential accounts for 8% of its GAV, 70% of which have been sold. Commercial, hospitality and retail assets/developments form 82% of its value. Its share price heavily discounts its commercial and hotel assets under the cumbersome UOL/UIC/SL shareholding structure.

With a more active management and a consistent build up of investment properties in the last 5-7 years, we believe valuation discounts should narrow. UOL remains our top mid cap pick.

GLP: The group has no assets in Singapore and should not be affected in the expected sell-down. But if it does, we believe its asset recycling and China recovery themes remain intact and would advocate investors accumulate the stock.

UE: Residential developments make up 29% of UE’s gross value, though more than 50% has been sold. The group is an investment property play (>60% of GAV), with more asset completions coming in 2014. We see potential for accretive asset divestments and redevelopment of old assets.



More From Singapore Business Review
 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3573+0.0019+0.14%
    USDSGD=X
    1.5231+0.004+0.26%
    EURSGD=X
    1.7562-0.0153-0.86%
    GBPSGD=X
    74.1120-0.205-0.28%
    SGDJPY=X
    5.7072-0.0128-0.22%
    SGDHKD=X
    3.0268-0.0057-0.19%
    SGDMYR=X
    9,655.5332-31.46-0.32%
    SGDIDR=X
    4.9066-0.0088-0.18%
    SGDCNY=X
    1.0340-0.0017-0.16%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,341.10-3.60-0.27%
    GCZ16.CMX
    19.77-0.32-1.61%
    SIZ16.CMX
    95.76-3.02-3.05%
    ^XAU
    2.20+0.01+0.25%
    HGZ16.CMX
    43.85+0.41+0.94%
    CLV16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.15-0.02
    ^FVX
    1.62-0.02
    ^TNX
    2.34-0.01
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.136-0.001-0.73%
    N21.SI
    0.720.00-0.69%
    BS6.SI
    0.143+0.004+2.88%
    5DM.SI
    0.960.000.00%
    Y92.SI
    0.32+0.01+3.23%
    5OT.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.275+0.055+25.00%
    S46.SI
    0.375+0.045+13.64%
    AZT.SI
    0.27+0.03+10.20%
    5EC.SI
    0.33+0.02+6.45%
    1A1.SI
    1.0850.0000.00%
    AYN.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.235-0.055-18.97%
    PA3.SI
    0.136-0.029-17.58%
    5NF.SI
    0.17-0.03-15.00%
    AYD.SI
    0.09-0.01-14.29%
    BQI.SI
    0.35-0.05-11.39%
    BQF.SI