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CitySpring

DBS Vickers (Spore): Cityspring Infrastructure Trust, BUY S$1.52 (Initiating Coverage) Price Target : 12-Month S$ 1.68

Cityspring Infrastructure Trust
Temasek's infrastructure platform

Ø     Story: CitySpring Infrastructure Trust (CitySpring), the first
infrastructure business trust in Singapore, is designed to provide
investors with regular and predictable distributions with potential for
long term capital growth.

Ø     Point: The initial portfolio is made up of assets that give a steady
income stream : (a) City Gas Trust, which owns 100% of CityGas, the sole
producer and retailer of town gas and the sole user of the low-pressure
piped town gas network in Singapore; and (b) SingSpring Trust, which has a
75% stake in SingSpring Plant, the sole supplier of desalinated water to
the Public Utilities Board. We believe that there is a strong likelihood
that infrastructure assets with growth characteristics will be added over
the next twelve months.

Ø     Relevance: Initiate with a Buy recommendation with a TP of S$1.68
based on a S$500m acquisition size, asset leverage of 50%, pre-financing
yield of 9% and a target yield of 5.8%.

Cityspring Infrastructure Trust
Temasek's infrastructure platform

Ø     Story: CitySpring Infrastructure Trust (CitySpring), the first
infrastructure business trust in Singapore, is designed to provide
investors with regular and predictable distributions with potential for
long term capital growth.

Ø     Point: The initial portfolio is made up of assets that give a steady
income stream : (a) City Gas Trust, which owns 100% of CityGas, the sole
producer and retailer of town gas and the sole user of the low-pressure
piped town gas network in Singapore; and (b) SingSpring Trust, which has a
75% stake in SingSpring Plant, the sole supplier of desalinated water to
the Public Utilities Board. We believe that there is a strong likelihood
that infrastructure assets with growth characteristics will be added over
the next twelve months.

Ø     Relevance: Initiate with a Buy recommendation with a TP of S$1.68
based on a S$500m acquisition size, asset leverage of 50%, pre-financing
yield of 9% and a target yield of 5.8%.

 

Any kind soul did a valuation on this stock? Not keen on mutiples-based valuation, prefer intrinsic valuation....Thanks!

 

still holding on to my 2 lots@$1.43 :)

 

Time	Last	Volume	Bid/Ask
17:05:03	1.520	30,000	B
16:59:22	1.520	150,000	A
16:59:19	1.520	10,000	A
16:59:15	1.520	10,000	A
16:59:10	1.520	10,000	A
16:58:05	1.520	500,000	A

TRADED SUMMARY:

Last	Trades	Volume	Bid Volume	Mid	Ask Volume
1.510	68	437,000	437,000	0	0
1.520	10	772,000	30,000	0	742,000
TOTAL	78	1,209,000	467,000	0	742,000

 

CitySpring is a defensive stock, oni BBs decide the price, think it will move oni when they do their calling, Don ask me when. I really don know, i oni know Macqur..bank has warrant to base on it calling and that is $1.70c/$1.75c when it time come, maybe in four to six mths

 

Good stock in times of market correction.

 

price seems like quite stable, not affected by sti up down

 

or isit still early day, px will oni move when BBs do their calling as and when they dim fit....meanwhile must wait very patience-ly. 

 

CitySpring, news on about Sinospring getting three contracts seem like a none events, fallen on deaf ear, all this indicated BBs will decide oni when it will move it px northward.

 

I fully agreed need to have patient with this counter.
Invested some amount to this counter:)

 

That's a fact of life....a mixture between patient, hesitation and excitation....shiok! :-)

 

patient, patient & a lot of patient is the secret to preserve you money at any kind of mtk!!!

I admit at time I lost patient when I waited so long foe one particular counter.... just the moment you let it go... then it flying high~~~ sing song to you everyday aft that.... damn~~~

 

By the time the acquisition news come in and then you want to buy the price would not be this current price range already. It is always so hard to make a decision isn't it?

That is why this stock is for long term holding. Anyone keen on short term profits should not target this stock. Instead go play IndoFood or SunVic where shortists and contra players are found in abundance there :)

 

Defensive stock. slow .....in fact very slow. well, if u got it at ipo and below 1.5 , can hold for good yield. If not, what is the point....If bought at 1.5 above, it will just be a bit better than bank interest.No point. unless , they make some aquisitions, which might be some time away...

 

I was thinking this counter not so good for shorting and contra players so they go and play IndoFood? Sometimes once volume increase for a counter those nasties is in play already.

How I wish the day come when SGX changed the trading rules. No monies no shares. No shares cannot queue to sell should be banned :)

 

Sinospring is more or less under their wing liao and have every indicated to be added, oni matter of when, timing is important to them, esp when confirm shares market is not oni stable, oso must be very good ahh...meanwhile short term trading is range bound. expecting to do something big within three to six months by Oct 07. Just my tot.

 

Hi YongJiu,

Up-swing, it will be range bound, v.stable, unless BBs announce some thing big along the way eg by adding a new infarsrtuture or add new value added products and just B4 announcement, can see px move in a big way upward , just my tot.

 

With strong BB support behind. this baby is holding up pretty well I would say. Compared to IndoFood drop, the drop for CitySpring is minor. I am holding long term so any up or down swing for short term period does not matter to me as I had paid up all in full with cash. No borrrowed monies or use CFD  to hold so I sleep very good every nite :)

 

hey teeth,

this baby seem to be too scare to moving up....
from your opinion any more up-swing within short-term period

 

CitySpring up +3 cents to $1.53c on vol 1,920 million shares done