BUSINESS:
The modern logistics facilities provider is mainly owned by GIC (Government of Singapore Investment Co). It builds logistic warehouse in regions, such as China, Brazil, Japan and US.
OVERVIEW:
More than 60% of its business is contributed by China market which has been showing promising growth in revenue in the past. On early this month, it achieved new leases agreement several key players in pharmaceutical sectors from both China and Brazil. For the new warehouse portfolio in US market where it co-ventured with GIC last year, the leases hit about 91% by Jan 2015. Strong contribution from US shall be seen on near future. Its next bigger shareholder, Blackrock has been increasing its stake on the company as well lately.
REASON TO BUY:
The counter looks good buy from fundamental perspective. It has its business footprint over key developed regions yet offering Price to Book value ({P/B) ~1 at current price. Its strong cash and low debt position shall be strong enough to weather through interest rate hike which is widely expected in the near future.
From the chart, the counter price has been bouncing within 2.42 and 2.64. It has been trying to break 2.64 again lately.
ENTRY PRICE
Over the time span of two years, this price movement is within its lower range. Good Entry <2.6.
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