China Properties +0.7%; NAV Discount To Narrow -ML
China Properties (1838.HK) +0.7% at HK$4.38, vs HSI down 1.3%; shares down 33% from intraday record HK$6.50 on Oct. 11. Merrill Lynch says stock still trading at deep discount to end-2007 NAV HK$11.40; but kick-off of construction of Shanghai Concord City phase 2 on Dec. 20 is helping to narrow discount. Tips revenue from Concord City phase 2 to kick in from 2009; cuts 2007 net profit forecast 28% to HK$697 million, lifts 2008 forecast 10% to HK$1.55 billion to reflect phase 1 sales that are now occurring. Expects more development potential in Chongqing, but doesn't factor this in as plan is preliminary. Keeps on Buy call, target stays at HK$9.00.