SINGAPORE (Apr 16): Soochow CSSD Capital Markets is starting coverage of EC World REIT at “buy” with a price target of 88 cents on the belief that the trust is well-positioned to benefit from China’s growing e-commerce market, to which its currently has about a 29% exposure.
In an initiation report on Monday, analyst Tan Cheng Wee highlights the trust as a prime beneficiary of Hangzhou’s ongoing logistics boom with its rising exposure to the e-commerce sector, as well as yield anchored by steady master-leased assets.
At its last closing price of 73.5 cents on Friday, the REIT offers a FY18 yield of 8.4% with 3.8% DPU CAGR from FY17-20, and trades at sector-lowest 0.78 times P/B.
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