KIM ENG RESEARCH has initiated coverage of ARA Asset Management with a target price of $1.65.
Analyst Anni Kum recommended a Buy based on a sum-of-the-parts (SOTP) valuation.
“At 13x FY12F PER, ARA appears relatively undervalued compared to its peer, Cohen and Steers, on 19x PER.”
Risks include a drop in market appetite for funds, a decline in asset values of its REITs, and any inability of its REITs to acquire new assets.
ARA Asset Management has a ‘winning formula’ whereby it earns growing fees from managing listed REITs and real estate private funds as assets under management (AUM) grow. The business is scalable, offers geographical diversification and growth opportunities.
Tuesday, January 17, 2012
Friday, January 6, 2012
LOFTY GOALS….. ARA Asset Management does have lofty goals.
An analyst report dated Jan 5 from IIFL this morning said ARA plans to increase its Assets Under Management (AUM) by S$2bn/annum, similar to the average annual growth achieved over 2004-10.
Another big ambition: The listing a new US$1bn REIT in 2012.
DBS Vickers recently described ARA as "Asia’s finest asset manager with a high cashflow generating business model and little earnings downside."
The Group also plans to list more RMB-denominated REITs in Hong Kong over the next 2-3 years.
There is yet more: ARA plans to drive its medium-term growth by raising and deploying the US$1bn of committed capital for ARA’s Asia Dragon Fund 2 private fund and organic growth of AUM for currently listed REITs.
IIFL expects annual AUM growth of S$1.6bn for ARA over 2011-13.
IIFL has a target price of $1.67 for the stock, representing an upside of 34% from the recent $1.25. Not as exciting is the forecast dividend yield for FY11 and FY12 of 4% and 4.2%, respectively.
http://www.nextinsight.net/index.php/story-archive-mainmenu-60/916-2012/4773-aras-lofty-goals-in-2012-and-beyond-china-2012-forecast
Another big ambition: The listing a new US$1bn REIT in 2012.
DBS Vickers recently described ARA as "Asia’s finest asset manager with a high cashflow generating business model and little earnings downside."
The Group also plans to list more RMB-denominated REITs in Hong Kong over the next 2-3 years.
There is yet more: ARA plans to drive its medium-term growth by raising and deploying the US$1bn of committed capital for ARA’s Asia Dragon Fund 2 private fund and organic growth of AUM for currently listed REITs.
IIFL expects annual AUM growth of S$1.6bn for ARA over 2011-13.
IIFL has a target price of $1.67 for the stock, representing an upside of 34% from the recent $1.25. Not as exciting is the forecast dividend yield for FY11 and FY12 of 4% and 4.2%, respectively.
http://www.nextinsight.net/index.php/story-archive-mainmenu-60/916-2012/4773-aras-lofty-goals-in-2012-and-beyond-china-2012-forecast
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