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STOCKS NEWS SINGAPORE-CIMB raises Ho Bee target price
October 30, 2012 / 1:50 AM / 5 years ago

STOCKS NEWS SINGAPORE-CIMB raises Ho Bee target price

CIMB Research raised its target price on Ho Bee Investment Ltd to S$1.52 from S$1.27 and kept its ‘neutral’ rating, to reflect cash proceeds from the sale of a hotel and lower cap rates for industrial assets.

Shares of Ho bee have jumped nearly 47 percent since the start of the year, compared to the FTSE ST Financial Index’s 27.8 percent gain.

Ho Bee said it will sell Hotel Windsor for S$163 million, giving it a net gain of S$25.9 million on completion, which will lift its restated net asset value by 3 percent, CIMB said in a note.

The brokerage noted that cash proceeds from the sale could be used for capital expenditures at the China projects and office development in Singapore, the Metropolis.

0938 (0138 GMT) (Reporting by Charmian Kok in Singapore; Editing by Anand Basu; harmian.kok@thomsonreuters.com)

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9:24 STOCKS NEWS SINGAPORE-OCBC, CIMB ups Starhill target price

OCBC Investment Research raised its target price for Starhill Global Real Estate Investment Trust to S$0.84 from S$0.79 and kept its ‘buy’ rating, citing higher rentals at its Singapore shopping mall Wisma Atria.

By 0109 GMT, units of Starhill were unchanged at S$0.79. They have surged 41.7 percent since the start of the year, compared to the FTSE ST Real Estate Investment Trust’s 35.3 percent rise.

Starhill Global said its distribution per unit for the third quarter rose 11 percent to 1.11 Singapore cents from a year earlier, helped by strong property income growth for its Singapore shopping malls.

Property income from Wisma Atria came in stronger than expected, helped by positive rental reversions and full committed occupancy at the mall, which helped offset weakness at its China and Australia properties, OCBC said.

CIMB Research also raised its target price for Starhill to S$0.81 from S$0.75 and kept a ‘neutral’ rating to factor in a lower valuation discount rate of 7.9 percent.

However, the brokerage cut its distribution per unit estimates for Starhill due to lower margins in Japan and weaker growth in China.

0912 (0112 GMT)

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