Ho Bee Land: Strategic Move in Australian Property Sector

Ho Bee Land, trading at \$1.82 (down 1 cent), has announced a non-binding indicative offer (NBIO) to acquire all shares of AVJennings Limited (AVJ) that it does not already own. Currently holding a 5.49% stake in AVJ, Ho Bee Land aims to expand its footprint in Australia through this acquisition. AVJ is a renowned residential property developer listed on both the Australian and Singapore Exchanges.

The proposed transaction offers AVJ shareholders a cash consideration of A\$0.70 per share, valuing the deal at approximately A\$390.7 million. This merger is anticipated to bolster Ho Bee Land’s scale, financial position, and competitive capabilities in Australia’s property market. However, the NBIO remains non-binding and is subject to further due diligence and negotiations.

Despite the uncertainty, analysts remain optimistic about Ho Bee Land, citing its undemanding valuation. At \$1.82, the company boasts a forward 12-month P/E of 5.7x, current P/B of 0.33x, and a dividend yield of 1.7%. Bloomberg consensus indicates a target price of \$3.80, representing a potential upside of 109%. The recommendation for Ho Bee Land remains an “Accumulate” rating due to its attractive valuation and growth prospects.

CapitaLand India Trust (CLINT): Riding the Wave of Digitalisation in India

CapitaLand India Trust, trading at \$1.05 (down 0.01), is making significant strides in the development of data centers in India. Recently, it signed a long-term agreement with a leading global hyperscaler, pre-leasing nearly half of its 250 MW gross power capacity under development.

CLINT is diversifying into critical infrastructure, driven by India’s burgeoning digitalisation. The company is on track to complete its data centers in key Indian cities, including Mumbai, Chennai, Hyderabad, and Bangalore. These developments enhance CLINT’s portfolio, which already includes 10 IT business parks, three industrial facilities, one logistics park, and four data centers, spanning a total completed area of 21.8 million square feet.

CLINT, listed on the Singapore Exchange since 2007, focuses on delivering stable income distributions akin to a REIT. As of September 2024, its assets under management stood at S\$3.3 billion. Analysts have assigned an “Accumulate” rating to CLINT, citing an attractive yield of 7% and a 21% upside to the consensus target price of \$1.28.

CapitaLand Investment Limited (CLI): Expanding Global Real Asset Management

CapitaLand Investment Limited (CLI), the parent company of CLINT, is a global leader in real asset management with a strong foothold in Asia. As of September 2024, CLI managed S\$134 billion in assets and S\$102 billion in funds across various real estate classes, including retail, office, lodging, industrial, logistics, and data centers.

CLI has a robust pipeline of investment opportunities and development capabilities, making it well-positioned to scale its fund, lodging, and commercial management businesses globally. Analysts recommend an “Accumulate” rating for CLI, citing a yield of over 5% and a potential upside of more than 40% to the one-year target price of \$3.52.

OCBC Bank: Institutional Investors’ Favorite

OCBC Bank witnessed significant institutional interest, with net buying of S\$60.6 million during the week of January 6, 2025. Retail investors, however, showed net selling activity, offloading S\$44.5 million worth of shares. This disparity underscores institutional confidence in OCBC’s financial performance and growth trajectory.

CapitaLand Integrated Commercial Trust (CICT): Dual Interest from Institutions and Retail

CICT garnered attention from both institutional and retail investors. Institutional net buying reached S\$9.4 million, while retail investors contributed S\$8.7 million of net buying during the same period. This strong interest highlights CICT’s appeal as a stable investment in Singapore’s commercial property sector.

Singapore Telecommunications (Singtel): Strong Retail Demand

Singtel saw robust retail net buying of S\$13.4 million, reflecting confidence in its dividend-paying capacity and growth potential in the telecommunications sector. Institutional investors followed suit, with net buying of S\$11.8 million, further solidifying Singtel’s position as a reliable investment choice.

Yangzijiang Shipbuilding: Mixed Sentiment

Institutional investors offloaded S\$43.7 million worth of Yangzijiang Shipbuilding shares, while retail investors displayed slight optimism with net buying of S\$1.5 million. The shipbuilding giant remains a contested stock amidst mixed market sentiment.

Key Share Transactions and Buybacks

Several companies engaged in notable share transactions and buybacks:

• Tuan Sing Holdings: William Liem acquired 1,258,600 shares, increasing his stake to 54.59%.
• Hotel Properties Ltd: Ong Beng Seng increased his holding by 150,000 shares, bringing his ownership to 60.22%.
• Singtel: Conducted a buyback of 2,500,000 shares at \$3.08, reflecting confidence in its valuation and future performance.

Dividend Announcements

Several companies declared dividends, offering attractive yields to shareholders: