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美银美林:香格里拉(00069-HK)升级「买入」,目标价升35%至20.8元

Bank of America Merrill Lynch: Shangri-La (00069-HK) upgrades “buy”, target price rises 35% to 20.8 yuan

美林 ·  Dec 24, 2012 11:39  · Researches

Bank of America Merrill Lynch published a report raising the rating of Shangri-La Asia (00069-HK) from “outperforming the market” to “buying”, reflecting optimism about the growth of rental properties in mainland China, and the stock price already reflects the slow growth of revenue per room (RevPar) this year and next year. The bank raised the company's earnings before interest tax depreciation and amortization (EBITDA) forecast by 4%/5% for this year and next year, and the earnings test increased 15%/31%. The target price increased 35% from 15.4 yuan to 20.8 yuan, corresponding to the 2013 corporate value (EV) of 13 times EBITDA.

According to the report, Shangri-La's Jingan Kerry Center (Jingan Kerry Center) plans to start operation in the first quarter of next year. The pre-leasing progress has exceeded the bank's expectations. Shopping malls and office buildings are pre-leased 93% and 60% respectively. The bank expects this project, excluding the total profit of the hotel, to reach 27 million US dollars next year, accounting for 12% of the company's core net profit.

Bank of America Merrill Lynch said that the company's slowdown in RevPAR growth is basically reflected in the stock price, which has outperformed the Hang Seng Index by 13% in the past six months. Since this year, RevPAR in the Asia Pacific region has increased 5% year-on-year. The bank's earnings forecast for the company next year is based on RevPAR increasing by only 3%. Meanwhile, the company recently launched the residential portion of the Tianjin Project, Shenyang Kerry Center, and Tangshan Project, contributing a total of 251 million yuan in contract sales so far.

The translation is provided by third-party software.


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