KLCC (5235SS) : KLCC Property Holdings - Suria KLCC leads the way
Target RM6.90 (Stock Rating: HOLD)
With a 3Q14 core net profit of RM171.2m, KLCCP’s 9M14 core net profit reached RM506.1m, in line with our expectations at 73% of our full-year forecast. Revenue growth of 3.2% for the quarter was driven by a 5.5% yoy growth in its retail division. We make no changes to our EPS estimates. Our DDM-based target price is raised from RM6.40 to RM6.90 after we roll forward our valuation base to FY15. We think KLCCP's share price performance would likely be subdued moving forward given the lack of fresh catalysts, coupled with the market’s current lacklustre interest in REITs. We thus maintain our Hold call on the stock.3Q14 DPU at 8.19 sen
KLCCP declared a total of 8.19 sen per share in DPU for the 3Q14. This brings its total DPU for the 9M14 to 24.9 sen. 3Q14’s DPU includes 3.05 sen from KLCCP's property development side and 5.14 sen from the REIT side. 9M14’s DPU was below our expectations as it accounted for only 69% of our full-year DPU forecast which we have now revised downwards.
3Q14 earnings review
3Q14’s revenue grew by 3.2% yoy, driven by growth in its retail (+5.5% yoy), hotel (+2.5% yoy) and management services (+6.2% yoy), while its office segment remained flat. Retail revenue growth was driven by higher rental rates underpinned by the rental rates of its new outlets and rental reversions of existing outlets. KLCCP's hotel operations growth was driven by the hotels’ F&B segment coupled with higher revenues arising from the opening of the ballroom facilities after the completion of renovation. KLCCP's 3Q14 PBT grew by 3.6% yoy, in line with its revenue growth.
Menara Dayabumi to come in by end-2018
KLCCP will start construction on Menara Dayabumi Phase 3 in 2015, after recently obtaining the Final Investment Decision (FID) for the phase. The phase involves the redevelopment of Citypoint Podium into a 60 storey tower which comprises 600k sq ft of office space and a 500-room hotel. KLCCP has already secured the tenant for the office space while the hotel operator has been identified. The project is expected to be completed by end-2018.
Source: CIMB Daybreak - 10 November 2014
Target RM6.90 (Stock Rating: HOLD)
With a 3Q14 core net profit of RM171.2m, KLCCP’s 9M14 core net profit reached RM506.1m, in line with our expectations at 73% of our full-year forecast. Revenue growth of 3.2% for the quarter was driven by a 5.5% yoy growth in its retail division. We make no changes to our EPS estimates. Our DDM-based target price is raised from RM6.40 to RM6.90 after we roll forward our valuation base to FY15. We think KLCCP's share price performance would likely be subdued moving forward given the lack of fresh catalysts, coupled with the market’s current lacklustre interest in REITs. We thus maintain our Hold call on the stock.3Q14 DPU at 8.19 sen
KLCCP declared a total of 8.19 sen per share in DPU for the 3Q14. This brings its total DPU for the 9M14 to 24.9 sen. 3Q14’s DPU includes 3.05 sen from KLCCP's property development side and 5.14 sen from the REIT side. 9M14’s DPU was below our expectations as it accounted for only 69% of our full-year DPU forecast which we have now revised downwards.
3Q14 earnings review
3Q14’s revenue grew by 3.2% yoy, driven by growth in its retail (+5.5% yoy), hotel (+2.5% yoy) and management services (+6.2% yoy), while its office segment remained flat. Retail revenue growth was driven by higher rental rates underpinned by the rental rates of its new outlets and rental reversions of existing outlets. KLCCP's hotel operations growth was driven by the hotels’ F&B segment coupled with higher revenues arising from the opening of the ballroom facilities after the completion of renovation. KLCCP's 3Q14 PBT grew by 3.6% yoy, in line with its revenue growth.
Menara Dayabumi to come in by end-2018
KLCCP will start construction on Menara Dayabumi Phase 3 in 2015, after recently obtaining the Final Investment Decision (FID) for the phase. The phase involves the redevelopment of Citypoint Podium into a 60 storey tower which comprises 600k sq ft of office space and a 500-room hotel. KLCCP has already secured the tenant for the office space while the hotel operator has been identified. The project is expected to be completed by end-2018.
Source: CIMB Daybreak - 10 November 2014
