CIMB starts Treasury China Trust (LG2U.SG) at Buy with $1.83 target price, based on 30% discount to $2.61 RNAV estimate, says Dow jones.

Says business trust is good proxy for China’s recovering commercial property market, especially in Shanghai, which expected to account for almost all of TCT's rental income for 2013. 

 

Notes management seeking to differentiate TCT from other Chinese retail players by focusing on large-scale projects such as malls instead of strata-titled type of retail formats, which are common in China; “this creates an alternative shopping experience that achieves international standards in terms of tenant choice and professional property management, which also underpins the strength of the recurrent earnings.” 

 

Shares last +0.7% at $1.49.