DMAS UPGRADE TO BUY TP 200 (fr Neutral Tp 150)
Upgrading to Buy due to higher upside risks and limited downside risks
We upgrade DMAS to BUY at TP200 from Neutral at TP150 previously due to solid 2018 land sales and plentiful of inquiry coming into 2019, creating a better outlook for the company. Our SOTP valuation TP of 200 implies 19% upside, 18% discount to its RNAV, and 15% discount to its replacement value. DMAS is currently trading at 32% discount to its RNAV, and 29% discount to its replacement value.
At this point, investors would find limited downside risks in DMAS since, if the potential land sale gets cancelled, the stock still offers attractive dividend yield of 8%, assuming 90% dividends payout, at current price.
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