STOCKS NEWS SINGAPORE-CIMB raises Keppel REIT's target price

Mon Jan 21, 2013 10:20pm EST

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CIMB Research raised its target price on Keppel REIT , which owns commercial properties, to S$1.33 from S$1.26 but kept its 'neutral' call as it expects higher distribution going forward due to stronger performance of some of its assets.

At 0310 GMT, Keppel REIT units were up 0.7 percent at S$1.39. They have gained 7.3 percent since the start of the year, compared with the FTSE ST Real Estate Industrial Trust's 3.4 percent gain.

Keppel REIT posted a 40.7 percent rise in its fourth quarter distribution per unit to 1.97 Singapore cents, helped by higher property income from its Singapore office properties Ocean Financial Centre and Prudential Tower.

CIMB raised the distribution per unit in 2013-2014, due to stronger performance at its Singapore offices One Raffles Quay and Ocean Financial Centre.

Keppel REIT's asset leverage fell to 42.9 percent in the fourth quarter, from 44.1 percent in the previous three months, CIMB said, and noted it could see potential re-rating catalysts from future acquisitions.

1053(0253 GMT)

(Reporting by Teo Jion Chun in Singapore; Editing by Prateek Chatterjee; teo.jionchun@thomsonreuters.com)(Reuters Messaging: teo.jionchun.reuters.com@reuters.net)

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10:51 STOCKS NEWS SINGAPORE-Citi cuts M1 to neutral

Citigroup downgraded telecommunications company M1 Ltd to 'neutral' from 'buy' and lowered its target price to S$2.70 from S$2.86, citing higher capital spending over the next few years.

M1 shares were 0.4 percent higher at S$2.76, and have gained 1.8 percent since the start of the year, compared with the FTSE ST Telecommunications Index's 5 percent rise.

Citi has cut its earnings estimates for M1 by 10-11 percent for 2013-2014 to factor in higher capital expenditure (capex) expectations and an estimated S$100 million in LTE spectrum payments in 2015 and 2016.

The brokerage cited M1's management as saying it expects capex to be between S$130-S$150 million this year, higher than S$123 million last year, due to higher quality of service and increased coverage and capacity requirements.

"With the 19 percent return over the last year, we find M1's share price no longer as attractive on a relative valuation and yield basis," said Citi in a report.

In Southeast Asia, Citi prefers Thai telecommunications companies such as Advanced Info Service Pcl and Total Access Communication Pcl.

1027 (0227 GMT)

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