Singapore Stock Market News

Perennial Real Estate Holdings - Gathering momentum

StockFanatic
Publish date: Wed, 05 Aug 2015, 12:01 PM
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Pic Credits : perennialrealestate.com.sg
PREH's 4QFY15 net profit was largely from recurring income from its properties in Singapore and China, and management fees. We anticipate profit momentum to pick up pace from FY16 thanks to the opening of Capitol Piazza, as well as from the recently-approved proposed AEIs at TripleOne Somerset and AXA Tower. The latter has not been factored into our present forecast. Whilst we stretch out our earnings recognition assumption and lower our FY16 and FY17 estimates by 6-14%, we maintain our Add rating with an unchanged RNAV-based target price of S$1.39.
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