Compiled by Lynette Khoo
MAPLETREE INDUSTRIAL TRUST | BUY
TARGET PRICE: $1.94
SEPT 27 CLOSE: $1.85
DBS Group Research, Sept 27
Mapletree Industrial Trust (MIT) announced the expansion of its investment mandate to include overseas income producing real estate primary for data-center use.
The new mandate will be effective from Oct 26. Key target markets that the Reit manager has identified include gateway cities in the Asia-Pacific region, Europe and the US.
These cities offer advanced infrastructure power and global connectivity which support the growth of data-center real estate.
With strong government support (including intellectual property rights and data sovereignty) and a pro-business environment, there will be opportunities for MIT to establish a meaningful presence there.
It can also tap the sponsor, Mapletree Investments, for its experience, contacts and expertise in investing worldwide.
MIT targets that overseas data-centres could form close to 20 per cent of aggregate asset under management. Based on the Reit's asset under management of $3.77 billion as at June 30, overseas data-centers could comprise up to $600 million.
KSH HOLDINGS | HOLD
TARGET PRICE: $0.69
SEPT 27 CLOSE: $0.75
OCBC Investment Research, Sept 27
KSH reported that the 10th Chinese National Youth Rock Climbing Championship has officially commenced at the Mountain Climbing Training Centre & Outdoor Sports Centre in Gaobeidian, Hebei Province, China, which is part of the consortium's Sino-Singapore Health City development project.
The championship attracted more than 150 contestants from mainland China, Hong Kong, Macau and Taiwan, and the management team expects that the Sino-Singapore Health City will be a choice destination for national and world competitions which will attract tourists, sport broadcasters and outdoor sport lovers.
The Sino-Singapore Health City project is being developed by a Singapore consortium consisting of KSH Holdings Limited, Oxley Holdings Limited, Lian Beng Group Limited, Heeton Holdings Limited and Zap Piling Pte Ltd.
Our fair value estimate of $0.86 is adjusted to $0.69 to reflect the recent bonus share issuance of one bonus share for every four existing shares. Maintain Hold.
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