[ET Net News Agency, 18 September 2020] Credit Suisse lowered its target price for
Yuexiu REIT (00405) to HK$4.9 from HK$5.5 but upgraded its rating to "outperform" from
"neutral".
The research house expects the operations of Yuexiu REIT to improve in 2H as the retail
sales and hotel/serviced apartment business is well on track to recover post-COVID-19.
Credit Suisse estimated its 2H DPU (distribution per unit) to increase by 12% HoH or 6%
YoY to Rmb0.11.
Credit Suisse estimated Yuexiu REIT will benefit more from the low-interest-rate
environment. Its average financing cost was already trimmed to 3.13% as of June-2020
(versus 4.2% as of end-2019). The interest cost saving is to offset the rental concession
impact, the research house estimated.
Credit Suisse lowered its FY2020/21/22 DPU estimates by 9%/6%/6% to reflect the COVID-19
impact. It believes the current valuation has fully factored in the COVID-19 impact and
the improving operations should bode well for an attractive FY2020 dividend yield of 6.7%.
(KL)
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00405 YUEXIU REIT
Nominal 
0.880 0.000 (0.000%) Others
18/09/2020 14:33
{I-bank focus}Credit Suisse lowers Yuexiu REIT to HK$4.9
| Remark: | Real time quote last updated: 25/04/2024 13:16 |
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