Stock Analysis: Frasers Property | Lianhe Zaobao
Frasers Property recommends increasing holdings, with a target price of 1.41 yuan and a closing price of 1.06 yuan. The company's strategy includes expanding development and asset recycling to enhance shareholder returns. Strong demand for industrial logistics in Thailand, while the residential market is affected by the economy. The occupancy rate of office buildings in the One Bangkok project is rising, and the Ritz-Carlton hotel is performing well. Net profit is expected to grow by 17.8% in the fiscal year 2025. Maintain the buy rating, as capital recycling may become a catalyst for stock price revaluation. Risks include a weak macro environment and high debt
Frasers Property
- Recommendation: Buy
- Target Price: 1.41 CNY
- Closing Price: 1.06 CNY (+0.95%)
Frasers Property continues to implement its growth strategy of creating, maintaining, and releasing value, with 86% of its earnings coming from recurring income sources. Management indicated that shareholder returns and dividend capacity will be enhanced through the expansion of residential and non-residential development, as well as asset recycling activities.
The demand for its industrial logistics projects in Thailand is strong, but the residential market is affected by weak economic growth, prompting the group to adjust its sales strategy to focus on attracting business owners and high-end buyers. On the other hand, the occupancy rate of the office portion of the One Bangkok project has increased, and the Ritz-Carlton hotel has achieved ideal occupancy rates and dining revenue due to its prime location and events.
For the fiscal year 2025, the group's net profit is expected to grow by 17.8% year-on-year to 243.1 million CNY, mainly benefiting from the reversal of tax provisions from previous years. We maintain our "Buy" rating and target price of 1.41 CNY. Active capital recycling and improved liquidity may serve as catalysts for stock price revaluation. Downside risks include a weak macro environment and high debt ratios. (China Galaxy Securities International)
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