Frasers Property    Last:1.08    -0.02

Frasers Cpt

watched in awe on how a 12% minority shareholdings can cause this share to drop 6% in just a few days...

amazing

 

I' m no expert but the support seems far at around 1.70... might not even reach it.

Watch the selling pressure subside before entering. I think they gonna release their quarterly results soon.

Davidson      ( Date: 05-Jun-2014 14:16) Posted: Hi expert, how much is the support level? Thanks

 

sold my 50,000 shares @ 1.94. I thought I sold it too early. 

The chance seems to come back for me to accumulate and I bought 6,000 shares @ average price 1.846.   If the price goes down another 5 to 10%, i will buy more.

 

Hi expert, how much is the support level? Thanks

 

Hope it drops back to support level... wanna collect moarrr

 

Frasers Cpt - A transformational proposal

We believe FCL' s plan to buy up to 100% of Australand makes strategic sense but has a slightly negative financial impact. We have yet to factor in the transaction but estimate it can lead to a 3% reduction in RNAV/TP using 1.1x RNAV/NTA for ALZ (its historical average P/BV). We believe that is more than priced-in with FCL' s 4% correction post announcement.

We maintain our Add call and raise our target price (30% disc. to RNAV) slightly for the recent accretive take-up of FCT private placement. We will revisit our Add call if a bidding war occurs and FCL significantly overpays for ALZ.

What Happened
FCL announced a non-binding conditional proposal to acquire up to 100% of Australand' s (ALZ AU, Not Rated) shares via an off-market takeover offer for cash of A$4.48/share. FCL has an exclusive period of four weeks to conduct due diligence before finalising a binding Implementation Agreement. FCL' s share price fell 4% post the announcement.

What We Think
Makes sense strategically. This move is in line with management' s strategy of building up recurring income and scale in core markets. If 100% of ALZ is acquired, FCL would more than double its recurring income, and Australia would form ~40% of its total assets.

Financial impact slight negative. Assuming full debt funding, gearing could rise significantly from 0.5x at Mar 14 to ~1x and potential equity fund raising may lead to dilution. Assuming ALZ' s RNAV/NTA is at 1.1x, the transaction can reduce our RNAV and TP to S$2.88 and S$2.02 respectively, still 56% and 9% higher than FCL' s current price.

Risk of overpaying more than priced in. The offer price is at 1.2x ALZ' s NTA, above peer average and its historical P/BV of 1-1.1x. Stockland has an existing all-scrip offer that values ALZ at A$4.35 and we do not rule out a counter bid. We however believe the risk of overpaying has already been priced into FCL' s current valuation, which reflects a scenario where FCL pays ~A$5.50/share for ALZ (assuming a 30% discount to RNAV for FCL).

What You Should Do
Add. We are positive on the move from a strategic angle and believe the negatives have been priced in. We will revisit our call if a bidding war occurs.

Source : CIMB Research      ...last:$1.850...

 

Frasers Cpt - Diversified property developer, with a Hospitality REIT listing in the pipeline

• FCL was listed on 9 January 2014 as a result of a split of Frasers and Neave' s (FNN) drinks and property business after Thailand' s TCC took on a majority stake in FNN in 2013. TCC and ThaiBev collectively control 88%, implying a ~12% float.
• FCL has been a more dominant SG residential developer with 13 projects currently under development. FCL has a total of 14 retail assets (5 held via FCT), 11 office/business park assets (5 via FCOT) and over 8,000 serviced apartments leased/managed or owned, with 6,900 additional units signed-up serviced apartments pending opening in the next three years.
• The proposed listing of a hospitality REIT (EGM on 28 May, IPO 2H14) is expected to hold 12 assets (6 serviced residences from FCL and 6 hotels from TCC Group) located in Singapore, Australia, the UK, Japan and Malaysia. FCL will hold ~22% of FHT post IPO, whilst TCC should own > 40%.
• Management would like to ideally increase its recurring income and grow its investment properties to 60% of PBIT from 40% currently, and indicated a " soft" net debt-to-equity target of 0.8x.

Source : Credit Suisse Asia Pacific Equity Research      ...last:$1.945...

 

Frasers Cpt  has fully acquired LaSalle 61 Philip Sub Trust, a unit trust incorporated in Australia. As well as a 100% stake of Ananke Holding, the master lessee of the LaSalle' s owned hotel known as Sofitel Sydnet Wentworth for a collective amount of $237.2 million.

 

TP at $2.05.

Worth a wager ..... at $1.755 at today' s closing.

 

guoyanyunyan      ( Date: 12-May-2014 15:59) Posted: Frasers Cpt - Strong 2Q, delivering on presales  FCL delivered another strong quarter, with 2QFY14 core net profit up 37% yoy. This was within expectations, with 2Q/1H core EPS forming 22%/48% of our and 20%/45% of consensus full-year forecasts. While all segments remained strong, the outperformance really came from earnings recognition from overseas developments in Australia and the UK upon completion. A 2.5 Scts/share interim dividend was declared for the quarter. FCL remains one of our top picks given its strong earnings visibility from S$2.8bn of unrecognised presales, redevelopment potential and a hospitality trust launch as a potential catalyst. We maintain our Add call and target price, based on a 30% discount to RNAV. We tweak up our FY15-16 EPS by 2% due to lower interest costs. Source : CIMB Research      ...last:$1.765...

 

Frasers Cpt - Strong 2Q, delivering on presales 

FCL delivered another strong quarter, with 2QFY14 core net profit up 37% yoy. This was within expectations, with 2Q/1H core EPS forming 22%/48% of our and 20%/45% of consensus full-year forecasts. While all segments remained strong, the outperformance really came from earnings recognition from overseas developments in Australia and the UK upon completion. A 2.5 Scts/share interim dividend was declared for the quarter. FCL remains one of our top picks given its strong earnings visibility from S$2.8bn of unrecognised presales, redevelopment potential and a hospitality trust launch as a potential catalyst.

We maintain our Add call and target price, based on a 30% discount to RNAV. We tweak up our FY15-16 EPS by 2% due to lower interest costs.

Source : CIMB Research      ...last:$1.765...

 

CLARIFICATIONS ON MEDIA REPORTS 
 
Frasers Centrepoint Limited (the " Company" or " Frasers Centrepoint" ) refers to the article entitled " Frasers Buys Wentworth" published in the Australian Financial Review on 7 May 2014 regarding the purported purchase by the Frasers Centrepoint group of the Sofitel Sydney Wentworth (the " Hotel" ). 
 
The Company constantly explores and reviews opportunities to grow its business, and this includes opportunities to acquire and add quality properties to its portfolio of assets. As part of this strategy, the Company is engaged in discussions regarding a potential transaction involving the Hotel. However, no agreement has been entered into in relation to the potential transaction and there is no certainty of any transaction being proceeded with. The Company will make an announcement in the event of any material development at the appropriate time. 
 
The Company also wishes to clarify that, through its group of subsidiaries and associated companies, it owns and operates serviced residences in Australia with a total asset value of about A$252 million (approximately S$300 million based on an exchange rate of A$1 : S$1.17).The Frasers Centrepoint group' s total hospitality and development property assets in Australia amounts to approximately S$1.5 billion. 
 
In the meantime, investors and shareholders of the Company are advised to refrain from taking any action in respect of their securities in or issued by the Company which may be prejudicial to their interests, and to exercise caution when dealing with the securities of the Company. 
 
 
BY ORDER OF THE BOARD 
Anthony Cheong Fook Seng / Piya Treruangrachada 
Company Secretaries 
7 May 2014 

 

Frasers Centrepoint -Bullish break suggests more upside to come

By Philip Teo, OCBC  Thu, 8 May 2014, 10:55:23 SGT Bullish break suggests more upside to come Key resistance conquered.  Frasers Cpt could see further recovery after initiating a strong bullish break above the $1.70 key horizontal resistance on heavy trading volume yesterday.  Indicator still bullish.  The MACD has just rebounded off its signal line as well this suggests that the upside momentum remains intact. Target price at $1.90.  The counter could climb higher towards the next key resistance at $1.90 (key psychological level) in the weeks ahead. Stop loss level at $1.66.  Meanwhile, we advocate a stop-loss exit around $1.66, which is slightly below the newly established resistance-turned-support of $1.70. ...last:$1.75... Date of Listing 09  Jan 2014 Offer Price $1.61 Frasers Cpt is headquartered in Singapore and its principal activities are property development, investment and management of commercial property, serviced residences and property trusts. The Group' s property portfolio comprises properties located in Singapore and overseas, ranging from residential and commercial developments to retail properties, serviced residences and office and business space properties, as represented by the following four lead brands/divisions - Frasers Centrepoint Homes (for Singapore residential development properties), Frasers Property (for overseas development properties), Frasers Centrepoint Commercial (for retail, office and business space properties) and Frasers Hospitality (for serviced residences). In addition, Frasers Cpt is the sponsor and manager of two REITs listed on the SGX-ST, Frasers Cpt Tr and Frasers Com Tr, that are focused on retail properties and office and business space properties respectively.