CIMB Research raised its target price on property developer
Ho Bee Investment Ltd to S$2.21 from S$1.93 and kept
its 'outperform' rating, citing a possible upward revaluation of
Ho Bee shares were up 1.1 percent at S$1.885, and have
jumped 83.9 percent since the start of the year, compared with a
36.6 percent rise in the FTSE ST Financial index.
Ho Bee is trading at a 30 percent discount to its book
value, but CIMB noted that "the discount gap is attractive as
its book value is set to rise next year," when its commercial
property, the Metropolis is revalued.
"Demand for investment assets and quality office properties
with large floor plates places Metropolis in good stead for a
potential divestment in 2013," said CIMB.
The launch of China projects will also boost profits from
developments sales, CIMB said, expecting a sell-through rate of
50 percent to 60 percent for initial launches.
0932 (0132 GMT)