Business

Brokers' take

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.

Disclaimer: All analyses, recommendations and other information herein are published for general information. Readers should not rely solely on the information published and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.