A director at Champion Real Estate Investment Trust bought 1,964,000 shares at 1.690HKD and the significance rating of the trade was 60/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over ...
CHAMPION REIT (HK), a company active in the Real Estate Investment Trusts industry, has received a double requalification by the independent financial analyst theScreener. Its fundamental valuation is now 4 out of 4 stars while its market behaviour can be considered as defensive. theScreener believes that the gain of a star(s) and an improvement in the market risk perception allows upgrading the general evaluation to Positive. As of the analysis date February 26, 2021, the closing price was HKD ...
Champion announced 1H20 DPU of 12.29 HK cents (-7.7% yoy), in line with expectations. Central office tower, TGR, recorded resilient growth, however, rents could decline moderately going forward. Turnover rent at LP Mall tanked 90% yoy, leading to a 21% yoy slump in retail rental income. Unique strategies were adopted at LP Mall to maintain full occupancy. Maintain HOLD with a lower target price of HK$4.45. Entry price: HK$4.10.
REGIONAL Sector Gaming: Genting Group: GENHK's abrupt creditor payment default is seen as a negotiation manoeuver, and we do not foresee other listcos being forced to bail out GENHK. GREATER CHINA Sector Automobile: Weekly: PV retail sales volume grows 6% yoy in the first half of August, in line with expectations. Maintain MARKET WEIGHT. Top picks: Weichai, Brilliance and Yongda. Healthcare: Leading players satisfied with GPO tender results. Results Alibaba Group (BABA US/BUY/US$260.59/Target: ...
KEY HIGHLIGHTS Sector Automobile Weekly: PV retail sales volume grows 6% yoy in the first half of August, in line with expectations. Maintain MARKET WEIGHT. Top picks: Weichai, Brilliance and Yongda. Healthcare Leading players satisfied with GPO tender results. Results Alibaba Group (BABA US/BUY/US$260.59/Target: US$311.00) 1QFY21: Excellent results, encouraging outlook ahead. BOC Aviation (2588 HK/HOLD/HK$49.40/Target: HK$51.10) 1H20: Increasing focus on PLBs but lease receivables pose a ...
GREATER CHINA Results Champion REIT (2778 HK/HOLD/HK$4.69/Target: HK$4.93): 2019: Results in line with expectations. Update WuXi Biologics (Cayman) Inc (2269 HK/BUY/HK$118.90/Target: HK$132.06): Expects vaccine manufacturing to fuel revenue growth from 2022. INDONESIA Sector Poultry: Time to BUY into poultry companies; maintain OVERWEIGHT. MALAYSIA Results Berjaya Sports Toto (BST MK/HOLD/RM2.63/Target: RM2.62): 2QFY20: Slightly below expectations, but current lower interest rate climate enhan...
KEY HIGHLIGHTS Results Champion REIT (2778 HK/HOLD/HK$4.69/Target: HK$4.93) 2019: Results in line with expectations. Update WuXi Biologics (Cayman) Inc (2269 HK/BUY/HK$118.90/Target: HK$132.06) Expects vaccine manufacturing to fuel revenue growth from 2022. TRADERS’ CORNER SD Gold (1787 HK): Trading Buy Range CRRC Times (3898 HK): Trading Buy Range
Champion’s 2019 DPU of 26.66 HK cents (+2.0% yoy) is in line with our and market expectations. Positive rental reversions achieved across all three assets led to rental income and NPI growth of 3.8% and 3.2% respectively. In light of the increased uncertainty around the coronavirus and its impact on the economy, office rents could be cut and more rental concessions could be offered to tenants to keep occupancy rates high. Maintain HOLD with a lower target price of HK$4.93. Entry price: HK$4.50...
A lengthy retail downcycle is expected due to the ongoing unrest in Hong Kong and declining mainland visitor arrivals. Office rents are on a downtrend after peaking in May 19, dragged by growing vacancy rates and also office supply which had reached a 10- year high in 2019. The sluggish Hong Kong GDP outlook would further dampen office demand with prospective tenants holding up their expansion plans amid the uncertainties. Maintain MARKET WEIGHT.
Office rents are due for an adjustment given a supply influx and softer GDP outlook. Key office landlords have more protection from early rental negotiation and MNCs’ lease renewals. If history is any indication of the future, a lengthy retail downcycle could ensue given a depreciating renminbi and weak tourist numbers. Downgrade the sector to MARKET WEIGHT. Our key BUYs - Fortune REIT and Link REIT - have >70% exposure to non-discretionary retail trade, which has remained stable despite the s...
Office rents are due for an adjustment given a supply influx and softer GDP outlook. Key office landlords have more protection from early rental negotiation and MNCs’ lease renewals. If history is any indication of the future, a lengthy retail downcycle could ensue given a depreciating renminbi and weak tourist numbers. Downgrade the sector to MARKET WEIGHT. Our key BUYs, Fortune REIT and Link REIT, have >70% exposure to non-discretionary retail trade, which has remained stable despite the slu...
Share prices of property stocks have fallen 14.1% as the political situation in Hong Kong remains unresolved. A sharp decline in tourist arrivals also led to softer retail sales data in Jun 19. The non-discretionary retail segment will be resilient and we prefer Fortune REIT and Link REIT after a pull-back in prices. For developers, investors could look to bottom fish on further dips in prices as developers’ valuations approach the 2018 trough levels. We like SHKP for its strong locked-in sale...
Our fair value estimate of HKD 5 is reaffirmed for Champion REIT as key underlying fundamentals for the narrow-moat trust are unchanged. We expect strong rental growth for offices for 3 Garden Road and Langham Place though retail sales will likely be weaker against a strong 2018. The latter should see the variable sales of the rental component, which made up 23% of the property’s retail rental last year, softening. Year to date retail environment is generally weak in Hong Kong. Despite an incr...
Our fair value estimate of HKD 5 is reaffirmed for Champion REIT as key underlying fundamentals for the narrow-moat trust are unchanged. We expect strong rental growth for offices for 3 Garden Road and Langham Place though retail sales will likely be weaker against a strong 2018. The latter should see the variable sales of the rental component, which made up 23% of the property’s retail rental last year, softening. Year to date retail environment is generally weak in Hong Kong. Despite an incr...
Our fair value estimate of HKD 5 is reaffirmed for Champion REIT as key underlying fundamentals for the narrow-moat trust are unchanged. We expect strong rental growth for offices for 3 Garden Road and Langham Place though retail sales will likely be weaker against a strong 2018. The latter should see the variable sales of the rental component, which made up 23% of the property’s retail rental last year, softening. Year to date retail environment is generally weak in Hong Kong. Despite an incr...
KEY HIGHLIGHTS CHINA Strategy Tug Of War Slowing global growth could weigh on China’s stock market, despite the dovish central bank talk. Results NetEase (NTES US/BUY/US$232.60/Target: US$280.00) 4Q18: Strong game performance, bottom-line beat on increased operating efficiency. HONG KONG Results Champion REIT (2778 HK/BUY/HK$6.10/Target: HK$6.95) 2018: In-line; poised for stable growth. TRADERS’ CORNER Chinasoft International (354 HK): Trading Buy Range Hang Seng Bank (11 HK): T...
CHINA Strategy Tug Of War: Slowing global growth could weigh on China’s stock market, despite the dovish central bank talk. Results NetEase (NTES US/BUY/US$232.60/Target: US$280.00): 4Q18: Strong game performance, bottom-line beat on increased operating efficiency. HONG KONG Results Champion REIT (2778 HK/BUY/HK$6.10/Target: HK$6.95): 2018: In-line; poised for stable growth. INDONESIA Strategy Jokowi’s Presentation Of Facts Wins 2nd Round Of Debates: Post second round of debates, analysis in...
Stronger-than-expected turnover rent at Langham Mall and higher rental revision at 3 Garden Road underpinned Champion REIT’s solid second-half result. Distribution of HKD 0.2617 was largely in line with our forecast. The result does not alter our view on the trust. Our fair value estimate is increased slightly to HKD 4.80 from HKD 4.60. While the performance was better than expected and we continue to see the two properties as high quality, we believe the upside is priced into the current unit...
Stronger-than-expected turnover rent at Langham Mall and higher rental revision at 3 Garden Road underpinned Champion REIT’s solid second-half result. Distribution of HKD 0.2617 was largely in line with our forecast. The result does not alter our view on the trust. Our fair value estimate is increased slightly to HKD 4.80 from HKD 4.60. While the performance was better than expected and we continue to see the two properties as high quality, we believe the upside is priced into the current unit...
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