Upgrading our target price on Solidere to USD 13.58 following the sale of 36,000 sqm in the Waterfront area

During the analyst’s day held by Solidere on October 30, 2014, the management disclosed the company’s success in closing a deal over 3 plots in the waterfront area to local investors. The sale of 36,000 sqm beat our estimates for the year, which was around 20,000 sqm. This means the company secured revenues from sales of at least $158 million in addition to revenues from rentals and other sources of income, which will lead to total revenues of $221 million. We accordingly raise our estimates of Solidere’s profits in 2014 to around $90 million, with a higher fair value of $13.58 for the company’s share.

Click below for the full report:

Solidere Flash Note – November 2014

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