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.



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    Commodities
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    ^XAU
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    CLN15.NYM
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MARKET MOVERS

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    Most Actives
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    AFC.SI
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    5WA.SI
    0.180.00+2.27%
    5OU.SI
    0.215+0.005+2.38%
    5GB.SI
    0.830.000.00%
    N21.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    1.35+0.35+35.00%
    AYN.SI
    0.295+0.070+31.11%
    AFC.SI
    0.27+0.06+28.57%
    AVX.SI
    0.135+0.016+13.45%
    5IF.SI
    0.62+0.06+11.71%
    AWV.SI
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    % Losers
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    PH0.SI
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    5G1.SI
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    0.765-0.055-6.71%
    533.SI