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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Market Data

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    Currencies
    NamePriceChange% Chg
    1.3716+0.0006+0.04%
    USDSGD=X
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    EURSGD=X
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    GBPSGD=X
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    SGDJPY=X
    5.6530-0.0029-0.05%
    SGDHKD=X
    2.6769+0.002+0.08%
    SGDMYR=X
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    SGDIDR=X
    4.5288-0.001-0.02%
    SGDCNY=X
    1.0683-0.0045-0.42%
    AUDSGD=X
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    Commodities
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    1,198.50-6.30-0.52%
    GCJ15.CMX
    17.00-0.14-0.79%
    SIK15.CMX
    68.39-1.10-1.58%
    ^XAU
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    HGK15.CMX
    50.52-0.91-1.77%
    CLK15.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.47+0.06
    ^FVX
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    ^TNX
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    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.134+0.018+15.52%
    E13.SI
    0.415+0.010+2.47%
    E5H.SI
    0.167+0.004+2.45%
    5GB.SI
    0.285-0.005-1.72%
    5WA.SI
    0.945+0.015+1.61%
    N21.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.31+0.08+34.78%
    5PD.SI
    0.255+0.025+10.87%
    D79.SI
    0.134+0.018+15.52%
    E13.SI
    0.315+0.025+8.62%
    T4B.SI
    0.385+0.030+8.45%
    D03.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    1.862-0.095-4.85%
    O9D.SI
    0.22-0.01-4.35%
    M14.SI
    0.23-0.01-4.17%
    5UE.SI
    0.153-0.001-0.65%
    C10.SI
    0.52-0.02-3.70%
    R07.SI