KLCC Property: Maintain Buy - 1H12 Results: On Track

1H12 Results: On Track

• No surprises. KLCCP's 1H12 core net profit of MYR193m was in line, at 53% of our and 50% of consensus full-year estimates.
• We maintain our earnings forecasts and MYR6.38 RNAV-based target price.
• The potential REIT-ing of its world-class commercial buildings would unlock deeply-discounted values. KLCCP is our top BUY in the property sector with implied capital gains of 22%.

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Source: Maybank Research - 14 August 2012

Road show feedback - A Warmer Reception In London

Hitting the road. We were on the road during the last two weeks of June, meeting over 35 investors in the US and UK. While sentiment was generally weak, Malaysian equities received a warmer reception in London where interests were in its defensiveness and dividend yield prospects. Our Overweight call on the glove producers and some high conviction mid-cap BUYs (KLCCP, MPHB, Padini) also received a positive response. As expected, the upcoming 13th General Election (13GE) dominated the macro conversation.

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Source: Maybank Research - 4 July 2012

KLCC Property: Maintain Buy The Two Towers

Unlocking deep value. We are excited about the potential REIT-ing of KLCCP's prime assets, which would give an immediate boost to its deeply-discounted valuation. KLCCP currently trades at discounts of 22.5% and 32% to its FD NTA and our FD RNAV, respectively. We maintain our earnings forecasts but raise our RNAV estimate by 126sen to MYR6.38, also our new TP. KLCCP is our top BUY in the property sector.

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Source: Maybank Research - 29 June 2012

KLCC Property: Maintain Buy - A Solid Performance

Maintain BUY. KLCCP's 1Q12 core pretax profit was within our expectation (26% of our full-year forecast) but above consensus estimates (29%). We maintain our earnings forecasts and MYR4.35 target price (15% discount to MYR5.12 RNAV). The listing of IGB REIT at a potential 5-5.5% cap rate could set a new benchmark for KLCCP's valuation (with properties valued at cap rates of just 6-7%) and re-rate the stock.

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Source: Maybank Research - 24 May 2012

KLCC Property (HOLD) - Maintaining The Status Quo

KLCC Property (HOLD)

Maintaining The Status Quo

• KLCC Property hosted their Corporate Day last Friday, and we came with the following key takeaways:  
• No new updates on the RCULS or the possibility of a REIT creation, despite numerous probing.
• PETRONAS Towers 1, 2 and 3 will have their respective head lease agreements finalised soon, between KLCC Property and PETRONAS.  We have already factored in rental step ups in our forecasts, hence no change to our numbers.
• In terms of pipeline, Menara Dayabumi will see an extra 500k sft of NLA under Ph. 3 of its refurbishment programme, while we gathered that there are another 7 parcels of land within the KLCC locale, making up 370,000 sft (including Lot D1) for further development.
• All in all, we see KLCC Property as maintaining the status quo both operationally and strategically.  Maintain HOLD call and TP at RM 3.46 (15% discount to RNAV).

HLIB Research - 2 April 2012 

HLIB Research - 2 April 2012

Highlights 
Malaysian Banks - Retail applications picking up
Loan growth moderated due to slower approvals in the past three months, but retail applications picked up in February. Speads fell marginally due to competition in lending. Our top pick is Maybank.

 
KLCC Property; Buy - Steady growth ahead
Price Target: RM3.75; KLCC MK
Full year contribution from Lot C in FY12F; rental reversions from PTT (exp. Sep12). Dayabumi Phase 3 and Lot D1 are medium-term growth drivers. Buy with RM3.75 TP (30% discount to RNAV).


Traders Spectrum – From the ChartroomThe FBM KLCI staged a slow and steady climb in 1Q12 to register a rise of 65.6-point or 4.3%. Increasing in tandem was the FBM 70 Index (which measures the mid-cap space), up 3.9% quarter-on-quarter. But the third liners and penny stocks hogged the limelight, propelling the FBM ACE Index by 12.7% since the end of last year.

Going forward, we believe chances for our Malaysian bourse to pull back are greater than for it to extend its six-month rally. We have adjusted our technical targets for the FBM KLCI by plotting its major support area at 1,310-1,360 and resistance threshold at 1,610-1,670.

KLCC Property: Maintain Buy - REIT-ing its assets - sooner or later?

Maintain Buy. KLCC Property (KLCCP) is mulling the potential REIT-ing of its mature assets. To us, the REIT-ing is just a matter of time as it is a logical and necessary move to unlock its deeply-discounted valuations. 2012-13 growth will be driven by the Lot C development (Suria KLCC extension and PT3) and renewal of the 15-year master lease of the PETRONAS Twin Towers. We maintain earnings forecasts and RM4.35 target price (15% discount to RM5.12 RNAV).

Maybank Research - 2 April 2012

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KLCC Property (HOLD) - Results In-Line

KLCC Property (HOLD)

Results In-Line

• 9M FY11 net profit rose 234% yoy to RM657.6m, due to RN1.1bn of asset revaluations in 3Q and change in financial year-end from Mar to Dec.
• However, normalized 9M PBT rose 6.5% yoy to RM458.6m, making up 73% of our 12-month estimate, and we deem results to be in-line.
• The retail segment has done particularly well, with a 19.3% yoy rise in 3Q revenue as their extensive efforts to improve tenant mix have paid off. 
• 5 sen single-tier second interim dividend was declared, bringing total dividends for the year to 10.0 sen, in-line with our full-year forecast of 10.5 sen
• Given the recent improvement in share price, we now downgrade to HOLD with an unchanged target price of RM3.46 (15% discount to RNAV).  

Source: HLIB Research 27 Feb 2012

KLCCP - Poised for growth

KLCC Property; Buy; RM3.31
Price Target: RM3.75; KLCC MK

FY11 earnings in line; 5sen DPS declared. FY12F earnings growth supported by full-year contribution from Lot C and organic rent increases. Maintain Buy, TP raised slightly to RM3.75.

Source: HwangDBS Research 27 Feb 2012

KLCC Property: Maintain Buy - Deep-value property play

Maintain Buy. KLCCP's 9M11 core net profit of c.RM209m was largely in line (+6% YoY). We tweak our 2012-13 earnings forecasts by 2.5-3% post actual 2011 results. Our target price is raised to RM4.35 based on an unchanged 15% discount to RNAV. We continue to like KLCCP for its: 1) deep-value valuations,2) relatively low rental/debt risks, and 3) strong PETRONAS parentage.

Maybank Research 27 Feb 2012

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KLCC Property pre-tax profit up RM773m

KLCC Property Holdings Bhd's pre-tax profit for the nine months ended Dec 31, 2010 increased to RM773.026 million from RM391.5 million in same period in 2009.

In a filing to Bursa Malaysia, it said this was mainly due, among others, higher interest income and lower finance cost borne during the period.

Its revenue rose to RM697.5 million from RM655.7 million previously, contributed by better rentals achieved by the retail mall in addition to the improved revenue from hotel operations.


For the third quarter ended Dec 31, 2010, its pre-tax profit increased to RM147.466 million from RM129.954 million in same period in 2009.

Its revenue rose to RM237.437 million from RM223.660 million previously.

On the prospect, KLCC Property said its earnings were underpinned by long-term office tenancies and a strong and sustainable retail sector.

'The management has also introduced several measures to increase productivity, the benefits of which are reflected in the better results,' it said. -- Bernama

KLCC Prop chalks up RM139.8m profit

KLCC Property Holdings Bhd posted a higher pre-tax profit of RM139.8 million for its first quarter ended June 30, compared to RM131 million recorded in the previous corresponding quarter.

Revenue rose to RM227 million from RM218.4 million previously.

The pre-tax profit was achieved through lower operating costs and finance cost during the period, the company said in a statement today.

It said the earnings were underpinned by long term office tenancies and a sustainable retail sector.

The company expects a satisfactory performance for the year. -- Bernama

KLCC Property a 'hold': HwangDBS

HwangDBS has recommended a 'hold' stock rating for KLCC Property with a target price of RM3.70.

The securities firm noted that KLCC Property's 2010 earnings (ex-fair value gains) grew by 4 per cent to RM233 million.

Revenue rose 2 per cent, driven by office and retail segments' +3 per cent and +8 per cent respectively, which helped to mitigate the 13 per cent dip in hotel operations.

While retail turnover at Suria has returned to pre-crisis' RM2 billion and footfalls remained a high RM42 million, Mandarin Oriental saw lower occupancy rate of 55 per cent (FY09: 65 per cent) albeit stable ARR of RM636.

KLCCP has no intention to cut ARR but rather focus on product differentiation, value add promotions and cost control. Long term locked-in rental income from blue-chip tenants should continue to sustain future earnings.

KLCC Property a 'hold' at Kenanga

Kenanga is maintain its 'hold' call on KLCC Property Holdings with an unchanged fair value of RM3.44, based on SOP RNAV.

The share price of KLCC is expected to remain capped in the short to medium term due to dilution issues arising from uncertain RCULS conversion timeline.

'FY10 recurring net profit (RNP) of RM237 million came within expectations, accounting for 98 per cent of street's FY10E RNP of RM242 million and 100 per cent of our RM237 million,' says Kenanga.