Bukit Sembawang - Maybank Kim Eng 2018-07-06: Most Exposed To Singapore’s Residential Market

Bukit Sembawang - Maybank Kim Eng 2018-07-06: Most Exposed To Singapore’s Residential Market BUKIT SEMBAWANG ESTATES LTD SGX: B61

Bukit Sembawang - Most Exposed To Singapore’s Residential Market


Downgrade to HOLD with lower Target Price of SGD5.10

  • While Bukit Sembawang continues to trade at a steep discount of about 50% to its RNAV, we expect the recent policy tightening to weigh on the share price performance.
  • We downgrade the stock to HOLD from BUY with a lower Target Price of SGD5.10, based on a 50% discount to its revised RNAV of SGD10.20.



ASP cuts to impact pure residential player

  • With 5-10% increases in the ABSD for property investors, we expect developers to lower their ASPs to stimulate demand. io. As a pure residential exposure, Bukit Sembawang is highly exposed to this sector headwind.
  • We expect smaller impact to demand for its landed homes as it caters mainly to local owner occupiers and are less exposed to investment demand.
  • We cut ASPs by about 3-6% across all projects and mark down its legacy land value accordingly. We cut EPS by up to 14%.








Sector Report:


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Derrick Heng CFA Maybank Kim Eng | https://www.maybank-ke.com.sg/ 2018-07-06
SGX Stock Analyst Report HOLD Downgrade BUY 5.10 Down 8.550



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