Continue reading this on our app for a better experience

Open in App
Home Capital Broker's Calls

KGI keeps 'buy' call and 41 cents price target on Banyan Tree, sees steady launch of properties

The Edge Singapore
The Edge Singapore  • 2 min read
KGI keeps 'buy' call and 41 cents price target on Banyan Tree, sees steady launch of properties
Photo: Banyan Tree
Font Resizer
Share to Whatsapp
Share to Facebook
Share to LinkedIn
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

KGI Securities has kept its "buy" call and 41 cents target price for Banyan Tree Holdings B58 -

, citing its recovery from the pandemic and a steady launch pipeline of development properties for sale.

According to KGI, a joint venture between Banyan Tree and Creston Holding achieved presales of some one billion baht of a 17 billion baht phase. 

The development, Banyan Tree Residences Creston Hill, is a luxury branded residence near Khao Yai National Park, around 200km from Bangkok.

According to KGI, citing Banyan Tree, this development caters to the growing trend of luxury living amidst nature, appealing to permanent residents and holidaymakers. 

It consists of 21 pool villas and 16 condominium buildings, and subsequent phases will include additional villas and condominiums. 

In addition, Banyan Tree, which is marking its 30th anniversary, has announced a pipeline of 19 new property openings to be operated under various brands including
Angsana, Cassia, and Dhawa. 

See also: More Asean investors positioned in Grab while Singtel remains high on the radar following DC foray: Maybank

These new properties are located at Japan, Saudi Arabia, Vietnam, and South Korea. 

For its FY2023 ended Dec 31 2023, Banyan Tree's revenue increased by 21% y-o-y to $327.9 million and earnings surged from just $767,000 in FY2022 to $31.7 million. 

It is paying a final dividend of 1.2 cents.

See also: Analysts mixed on Keppel DC REIT after Japan data centre acquisition

Thanks to valuation gains, Banyan Tree's NAV per share has reached 80 cents as at Dec 31 2023, up from 56 cents a year earlier.

On the other hand, net gearing ratio decreased from 46% to 27% in the same period, as it was able to pare down debt with improving operating metrics.

Banyan Tree shares changed hands at 38 cents as at 3.36pm, down 1.3% for the day, and up 2.7% year to date.


Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
© 2024 The Edge Publishing Pte Ltd. All rights reserved.