Shimao Real Estate rising 3%dbs material valuation attracts 16.17 yuan

Shimao property climbed to a bottom today, with shares now up 3.16% to HK $13.06, trading 14.95 million shares.　　DBS issued a report saying that it had increased its rating from holding to buy, and that the target price had increased significantly from HK $6.64 to HK $144% to $16.17, a premium of 24% per cent. DBS refers to an increase of 45% and 12% per share of the Shimao 2009 and 2010 respectively to reflect strong sales performance and the acquisition of land transactions in Xiamen. A lower discount range was also used (the new target price is 10% more than the net asset value) to reflect a better credit environment. The current valuation of the unit, estimated at about 30% per cent of the adjusted net asset value, is 11 times times that of the 2010 forecast, and DBS believes its valuations remain attractive.