Global Equities Roundup: Market Talk

Dow Jones
08/03

The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

0546 GMT - Hang Lung Properties' stock valuation remains attractive, trading at more than 70% discount to DBS Group Research's estimated current net-asset value, say its analysts in a note. The Hong Kong-listed real-estate company's stronger 1H rental earnings were offset by higher finance costs from reduced interest capitalization, they say. Provisions in its China segment also dragged down its underlying earnings, they add. However, the analysts remain upbeat on the company over the long term, as a continued ramp-up at its Chinese development Westlake 66 should provide further support to rental earnings. DBS retains its buy rating and 10.38 Hong Kong dollar target price. Shares rise 4.7% to HK$7.635. (megan.cheah@wsj.com)

0512 GMT - Keppel Ltd.'s asset-monetization plans remain in focus for investors, with the company's year-to-date monetization potentially rising to over 2.0 billion Singapore dollars from S$1.7 billion in the next few months, says DBS Group Research's Pei Hwa Ho in a note. The pace of asset sales could accelerate in 2027 with the highly anticipated divestment of commercial development Keppel South Central, she says, which could add around S$2.0 billion to Keppel's overall asset monetization. The bulk of Keppel's noncore assets, which are real-estate-related, could be sold in the next four years, she says. DBS retains its buy rating and S$13.30 target price. Shares fall 1.6% to S$11.29.

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