• Maintain BUY and SGD0.88 Target Pric , 85% upside, which is pegged to P/RNAV of 0.65x.
• We remain positive on Amara following some updates from management. The 343-room Amara Signature Shanghai hotel is fully open for bookings, and management is positive that its active marketing efforts will raise occupancy levels. The soft launch for 100 AM Shanghai is scheduled for end-2018 and could add marginally to its full-year revenue.
• Amara is also working on marketing the balance of its 33-unit M5 @ Jalan Mutiara project and hopes to launch the 56-unit Newton Road residential development at end-2018.

All 343 Rooms of the Amara Signature Shanghai Are Open for Bookings After the Soft Launch in January/February

Amara is actively marketing the hotel to both corporate and individual travellers via various marketing channels to reach higher occupancy levels. The group also expects an increase in hotel demand, as Shanghai continues its leading position as a major tourist destination.

Source: RHB Invest Research - 21 Aug 2018