From CIMB:-
Bukit Sembawang Estates (S$4.97) - Downgrade on valuationsDowngrade from Outperform to Neutral on valuations. BS has done very well of late, up over 40% since our last upgrade of the stock in June. While inherent value remains considerable from its low-cost land bank, a lack of corporate access and low trading volume are concerns, especially in this period of rising uncertainties in the sector.
We recommend taking some money off the table until further evidence of improvements in the sector.
Low-cost land bank positive but lack of corporate access could cap further rerating.
BS has 5m sf of low-cost land bank, suggesting substantial value yet to be monetised. The successful launches of The Verdure and Luxus Hills Phase 1 have given us optimism that management is finally taken steps to realise the value of its inventory.
However, as uncertainties in the sector heighten on the back of cooling measures introduced by the government, we fear that BS will retreat into its shell as the launch window for the year starts to close. The lack of corporate access is also certainly not helping.
Valuation and recommendationMinor earnings adjustments. We raise our FY10-12 core EPS estimates by 1.1% on minor adjustments to our launch schedules
Maintain target price of S$5.02, still based on a 25% discount to our end-CY10 RNAV estimate. We believe the
valuation discount is warranted given the shares’
low trading liquidity and lack of corporate access. The stock
typically trades at 20-30% discounts to its RNAV with an average P/BV ratio of 1.6x (vs. 1.7x currently).
http://www.remisiers.org/research//BukitSemb-150909[1].pdf
It's all about "how much you made when you were right" & "how little you lost when you were wrong"