Stock Exchange: October 2015

Friday 23 October 2015

Frasers Centrepoint Trust - OCBC Investment -2015-10-23: Steady 4QFY15 results

FRASERS CENTREPOINT TRUST J69U.SI

Frasers Centrepoint Trust: Steady 4QFY15 results

 4QFY15 DPU +2.7% YoY

 Positive rental reversions of 6.3% for FY15

 AEI on Northpoint to commence in Mar 2016

4QFY15 results met our expectations

Frasers Centrepoint Trust's (FCT) 4QFY15 gross revenue grew 1.7% YoY to S$47.5m, while DPU rose 2.7% to 2.859 S cents. This was within our expectations.
For FY15, FCT's gross revenue and DPU increased 12.1% and 3.8% to S$189.2m and 11.608 S cents, respectively, and constituted 98.6% and 98.9% of our full-year forecasts.

Sembcorp Marine - OCBC Investment 2015-10-23: Lowest quarterly profit since 4Q07

SEMBCORP MARINE LTD S51.SI

Sembcorp Marine: Lowest quarterly profit since 4Q07

 Stopped recognition for five rigs

 Reversal of previous profits

 Downgrade to SELL

A drastic turn for the worse in 3Q15

Sembcorp Marine (SMM) reported a 34.0% YoY drop in revenue to S$1.13b and a 75.7% fall in net profit to S$32.1m, the worst quarterly showing since 4Q07.
9M15 revenue met 72% of our full year estimates, but net profit only accounted for 52% due to a significant decline in gross profit margin to 8.0% in 3Q15 vs 16.5% in 2Q15.

Keppel Corporation - OCBC Investment 2015-10-23: Supported by property

KEPPEL CORPORATION LIMITED BN4.SI

Keppel Corporation: Supported by property

 More jack-ups deferred

 Offshore earnings momentum to turn

 Net order book S$10.0b

3Q15 results weighed by O&M

Keppel Corporation reported a 23.4% YoY drop in revenue to S$2.4 and a 12.4% fall in net profit to S$362.9m in 3Q15, such that 9M15 net profit accounted for 72% of our full year estimate.

Suntec REIT - OCBC Investment 2015-10-23: Outlook remains uncertain

SUNTEC REIT SUNTEC REAL ESTATE INV TRUST T82U.SI

Suntec REIT: Outlook remains uncertain

 3Q15 DPU rose 8.3% YoY

 Uncertain leasing outlook

 Some negatives likely priced in

3Q15 results within our expectations

Suntec REIT reported a 20.4% YoY increase in its 3Q15 gross revenue to S$86.1m. This was driven by the opening of Phase 3 of Suntec City mall following the completion of the AEI and better performance from Suntec Singapore.

Sheng Siong Group - OCBC Investment 2015-10-23: Earnings continue to grow

SHENG SIONG GROUP LTD OV8.SI

Sheng Siong Group: Earnings continue to grow

Sheng Siong Group's (SSG) 3Q15 results met our expectations, as revenue grew 7.3% YoY to ~S$200m, making up 25.9% of our FY15 forecast.
Net profit also increased 18.7% to S$14.5m, constituting 26.8% of FY15F.
The group's new stores contributed 6.2% to its revenue growth, while 1.1% came from old stores.
SSG managed to keep its gross profit margin steady at 24.3% vs. 24.2% in 3Q14, while on a quarterly basis, this was lower than the 25.2% seen in 2Q15 due to seasonality effect, slightly lower selling prices and higher input prices.

Interplex Holdings Ltd - DBS Research 2015-10-23: Growth with Better Earnings Quality

INTERPLEX HOLDINGS LTD. M1P.SI

Interplex Holdings Ltd - GROWTH WITH BETTER EARNINGS QUALITY

Maintain BUY on quality earnings growth

While revenue growth is projected to be fairly modest due to a mixed outlook for its various segments, we expect greater operational efficiencies to lift net margins from 4.5% in FY15 to 6.1% in FY18, driving core net earnings at 14.9% CAGR.
At just 5.9x FY16 PE, we rate Interplex Holdings a BUY with 19% upside to TP of $0.83, based on 7x FY16 PE.
A decent prospective yield of 5.1% is also on offer.

While revenue growth is projected to be modest...

While single-digit growth is expected for various core segments (automotives, industrial products, etc), uncertainties surround the end-demand for others (mass storage, imaging, etc) – weighing on overall revenue growth.

...Opportunities for cross-selling and cost-cuts should lift margins and boost earnings.

As the Group leverages on Interplex Industries’ relationship with leading OEMs to exploit cross-selling opportunities and amid consolidation of operations, we expect net margins improvement from c.4.5% in FY15 to c.6.1% in FY18, which could help grow core earnings by c.51.9% from US$40.4m in FY15 to US$61.4m in FY18, along with revenue improvement of c.4.1%.

Valuation:

Maintain BUY,TP of S$0.83.

We have lowered our target price to S$0.83, which is pegged at 7x FY16F PE from 11x previously as peers have since de-rated. Similar to the historical average, this implies a 36% discount to larger peers.
Against core EPS growth of 14.9% CAGR, we believe our valuation multiple of 7x earnings is reasonable.
Share price should rerate as earnings are delivered.

Key Risks to Our View:

Slowdown in the global economy Slowdown in the global economy could pose significant challenges. Segments such as consumer electronics and automotives are subject to fluctuations in discretionary spending, which puts pressure on profits during slowdowns.

Paul YONG CFA DBS Vickers | http://www.dbsvickers.com/2015-10-23

DBS VickersSGX StockAnalyst ReportBUYMaintain BUY0.83Down 0.85

Sheng Siong Group - DBS Research 2015-10-23: Coming together nicely

SHENG SIONG GROUP LTD OV8.SI

Sheng Siong Group - Coming together nicely

3Q15 earnings in line, driven by new stores
Store expansion on track, margins set to improve going forward, long-term drivers intact
Maintain BUY and S$1.01 TP

Cambridge Industrial Trust - DBS Research 2015-10-23: Brewing Headwinds

CAMBRIDGE INDUSTRIAL TRUST J91U.SI

Cambridge Industrial Trust - BREWING HEADWINDS

Property conversions to cause headwinds to occupancy rates.

Property conversions (from single-tenanted properties to multi-tenanted ones when the leases expire over FY15-16F account for c.18.6% of revenues. This may mean downside to top line in the near term, given the expected loss of property efficiency and higher vacancy rates when these conversions take place. As such, we forecast CREIT to deliver c.1% CAGR in DPU over FY15-17F.

Optimal gearing caps upside from acquisitions.

CREIT has been active in acquisitions and has been focusing on optimising its portfolio performance through strategic AEIs across various properties which will aid growth in revenues in the coming quarters.
With gearing at 37.2%, we believe its capacity for further acquisitions is likely to be capped and thus we have not priced in any further acquisitions in our forecast.

Pro-active capital management.

CREIT has refinanced most of its loans expiring in 2015-2016, diversifying its debt funding sources as a result. As of 30-Sep-15, CREIT had a weighted average debt maturity of 3.6 years at an estimated cost of c.3.6%. The manager has fixed 96.5% of its interest rates over the next 3.5 years.

Valuation:

Our DCF-backed TP is maintained at S$0.61. The stock is trading at a c. > 8.0%, which we believe will cap further downside to share price.
Maintain HOLD.

Key Risks to Our View:

Interest rate risk. Any increase in interest rates will result in higher interest payments which will reduce income available for distribution and result in lower distribution per unit (DPU) to unitholders. That said, CREIT has substantially hedged their interest rate exposure.

Derek Tan DBS Vickers | Mervin Song DBS Vickers | Rachael TAN DBS Vickers | http://www.dbsvickers.com/2015-10-23

DBS VickersSGX StockAnalyst ReportHOLDMAINTAIN HOLD0.61SAME 0.61

Frasers Centrepoint Trust - CIMB Research 2015-10-22: Continues to deliver

FRASERS CENTREPOINT TRUST J69U.SI

Frasers Centrepoint Trust - Continues to deliver

4QFY15 DPU grew 2.7% yoy, led by higher rental revenue and lower financing costs.
Portfolio occupancy remains high at 96%.
Increasing shopper traffic and rising tenant sales underpin ability to grow rents
Northpoint AEI to commence in Mar 2016.
Maintain Add, with DDM-based target price of S$2.22 .

Ascendas REIT - CIMB Research 2015-10-23: Stable outlook

Ascendas REIT ASCENDAS REAL ESTATE INV TRUST A17U.SI

Ascendas REIT - Stable outlook

2Q DPU boosted by healthy organic growth and one-off distribution of S$6.5m.
Positive rental reversions across all property segments, uplift sustained into 2H.
AEIs in China and Singapore to provide another avenue of growth.
Greater impact of contributions from Australian portfolio acquisition to be felt from FY17.
Maintain Add, with an unchanged target price of S$2.57.

CapitaLand Mall Trust - CIMB Research 2015-10-22: New contributions from Bedok Mall from 4Q

CAPITALAND MALL TRUST C38U.SI

CapitaLand Mall Trust - New contributions from Bedok Mall from 4Q

3Q top line affected by ongoing AEI works and lower occupancy, offset by lower operating expenses and reduced interest charges.
Portfolio occupancy dipped to 96.8% on enhancement works.
Shopper traffic and tenant sales growth produced a stronger showing in 3Q.
New contributions to be felt from Bedok Mall; recent divestment of Rivervale Mall improves financial flexibility.

Genting Singapore - CIMB Research 2015-10-22: MBS likely to take more market share

GENTING SINGAPORE PLC G13.SI

Genting Singapore - MBS likely to take more market share

3Q15 adjusted property EBITDA was US$389.7m (+7% qoq, +11% yoy).
Rolling chip volume grew 20% qoq and 25% yoy to US$11.4bn, the best quarterly performance since 1Q14.
Stronger performance at MBS may not translate into better figures at GENS’s Resorts World Sentosa (RWS), rather we expect MBS to gain market share.

Sheng Siong Group - CIMB Research 2015-10-22: Bumper year for new stores

Sheng Siong Group - CIMB Research 2015-10-23: Bumper year for new stores

SHENG SIONG GROUP LTD OV8.SI

Sheng Siong Group - Bumper year for new stores

3Q15’s healthy sales growth of 7.3% yoy was mostly driven by new stores (+6.2%), with same-store sales (+1.1%) still reflecting sluggish retail spending.
3Q15 earnings (+18.7% yoy) beat our expectations by 7%, mostly coming from government grants (for productivity improvement programmes) and other income.
We maintain our forecasts and target price pending tomorrow’s analyst briefing.

SGX Top Gainers, Top Losers, Top Volume, Top Value & Market Indices 2015-10-23

FTSE ST Indices 23-October-2015, Friday

STI Index

+30.35
(+1.00%)

3068.46

All-Share Index

+6.96
(+0.95%)

739.01

Mid Cap Index

+6.84
(+0.97%)

712.10

Small Cap Index

+1.86 (+0.43%)

431.86

Fledgling Index

+5.63 (+0.67%)

845.08

Catalist Index

-2.63 (-0.47%)

552.52

Basic

+1.52
(+1.24%)

124.21

China Index

+0.65
(+0.29%)

223.87

China Top Index

+1.11
(+0.61%)

182.95

Consumer Goods Index

+1.86
(+0.41%)

457.54

Consumer Services Index

+9.66
(+1.25%)

782.76

Financials Index

+7.27
(+0.90%)

815.45

Health Care Index

-3.05
(-0.22%)

1401.01

Industrials Index

+8.80
(+1.25%)

715.62

Maritime Index

+1.58
(+0.67%)

237.18

Oil & Gas Index

-5.49
(-1.21%)

449.79

Real Estate Holding

+6.61
(+0.88%)

753.88

Real Estate Index

+5.66
(+0.77%)

737.25

Real Estate Investment

+4.89
(+0.67%)

734.78

Technology Index

-2.22
(-0.72%)

307.56

Telecommunications Inde

+21.44
(+2.11%)

1037.25

Utilities Index

+3.69
(+0.80%)

463.62

Sembcorp Marine - CIMB Research 2015-10-23: Short-term pain, long-term gain unsure

SEMBCORP MARINE LTD S51.SI

Sembcorp Marine - Short-term pain, long-term gain unsure

3Q15 core net profit of S$49m was 50%/60% below our/consensus forecast due to weak rig-building revenue recognition and reversal of profit for five jack-up rigs.
Plunge in the share price of associate Cosco resulted in S$17m impairment made on assets held for sale as well as S$24m losses shared in associates.
3Q15 EBIT margin was 6.6% (1H15: 11.4%) due to profits reversed for five jack-up rigs which had stopped construction since Aug 15.
We cut our FY15-16 EPS by 2-12% and target price to S$2.03, as we roll forward to CY17 valuation, still based on 11x P/E (-1 s.d. of historical average).

Keppel Corporation - CIMB Research 2015-10-23: Upside capped

KEPPEL CORPORATION LIMITED BN4.SI

Keppel Corporation - Upside capped

3Q15 net profit of S$363m is largely in line with our expectation and consensus. 9M15 core net profit forms 75% of our FY15 forecast.
Revenue for O&M missed slightly on slower-than-expected project recognition and more deferral of deliveries (three jack-ups). O&M EBIT % stable at c.12%.
Property sold 1,330 homes in China, up from 1,080 in 2Q15.
Downgrade from Add to Hold on limited upside. Re-rating catalysts could include stronger-than-expected margins and orders on O&M.

Thursday 22 October 2015

Sembcorp Marine - DBS Research 2015-10-23: More deferments

Sembcorp Marine - Maybank Kim Eng 2015-10-23: Unabated pressure; maintain SELL

SEMBCORP MARINE LTD S51.SI

Sembcorp Marine - More deferments

3Q15 earnings were way below on profit reversals, associate losses and impairment of its stake in Cosco.
Rising number of deferments a worrying trend; bumpy earnings ahead.
Trimmed FY15/16 PATMI by 25%/8%.
Maintain Hold, TP lowered to S$2.32.

Suntec REIT - DBS Research 2015-10-23: Headwinds Abound

SUNTEC REIT SUNTEC REAL ESTATE INV TRUST T82U.SI

Suntec REIT - HEADWINDS ABOUND

Hemmed in by double headwinds

In the year ahead, the REIT’s earnings will be driven by new contribution from recently completed Suntec City Mall redevelopment. Due to headwinds in the retail sector however, we believe that earnings upside is capped as the mall’s rents have underperformed the Manager’s initial target.
In addition, there could be downside risk for the REIT’s office assets, which are expected to see some volatility in rents and occupancies when new office supply enters the CBD from 2016 onwards.

Keppel Corporation - DBS Research 2015-10-23: Benefits of diversification

Keppel Corp - Maybank Kim Eng 2015-10-23: Support from 6% yield

KEPPEL CORPORATION LIMITED BN4.SI

Keppel Corporation - Benefits of diversification

3Q15 in line; weaker O&M earnings mitigated by stellar property performance
Another three jackup rigs are deferred by 3-4 months with compensation from customers.
HOLD for decent dividend yield; TP adjusted to S$7.40.

Ascendas REIT - Maybank Kim Eng 2015-10-23: Beat Expectations

Ascendas REIT ASCENDAS REAL ESTATE INV TRUST A17U.SI

Ascendas REIT - Beat Expectations

2Q results beat expectations on the back of stronger than expected rent reversions from business parks.
FY16-18 DPU forecasts raised by 4-6%. Growth will largely be due to new Australian logistics assets.
Yield target tightened by 25bp to 7%, TP raised 9.6% to SGD2.28. Maintain HOLD.

Suntec REIT - Maybank Kim Eng 2015-10-23: Softer operating performance

SUNTEC REIT SUNTEC REAL ESTATE INV TRUST T82U.SI

Suntec REIT - Softer operating performance

3Q15 DPU of 2.522 SGD cts in line. Capital distribution lends strength to operations. 9M15 at 77.4% of full-year estimates.
Guided down on passing rents at Suntec retail. Occupancy at MBFC offices weakened. However, debt metrics remained healthy.
Maintain SELL and SGD1.33 TP (FY16E target yield of 7.25%). Less attractive yields than office peers.

Sheng Siong Group - Maybank Kim Eng 2015-10-23: Another One on the List

SHENG SIONG GROUP LTD OV8.SI

Sheng Siong Group - Another One on the List

3Q15 results in line. Sales driven by five new stores added in Dec 2014 and 2015.
New store in Queenstown to be opened in Nov 2015.
Defensive business, highest margins among peers. Reiterate BUY with TP of SGD1.07, at 26x FY16E P/E. Expect catalysts from store openings.

Keppel Corp - Maybank Kim Eng 2015-10-23: Support from 6% yield

KEPPEL CORPORATION LIMITED BN4.SI

Keppel Corp - Support from 6% yield

3Q15 met expectations. Weaker O&M performance offset by stronger property contribution. We marginally cut EPS 1-2%.
Infrastructure unlikely to be burdened by any more losses as EPC projects are complete.
Maintain HOLD, but slightly trim SOTP TP to SGD7.70 from SGD7.80. Stock price is supported by 6% dividend yield.

Sembcorp Marine - Maybank Kim Eng 2015-10-23: Unabated pressure; maintain SELL

SEMBCORP MARINE LTD S51.SI

Unabated pressure; maintain SELL

3Q15 missed on weak rigbuilding, associate losses and impairment. Cut FY15-17E EPS by 12-26%.
EBIT margin was only 6.6% due to suspension of recognition for rigs in which delivery dates were deferred.
Maintain SELL and cut TP from SGD2.00 to SGD1.75, still based on 0.55x EV/Backlog.

Cache Logistics Trust - Phillip Securities 2015-10-22: Conversions are a drag

CACHE LOGISTICS TRUST K2LU.SI

Cache Logistics Trust - Conversions are a drag

2.140 Cents DPU, unchanged from previous year and preceding quarter.
High portfolio occupancy of 95.2%, with long WALE of 4.3 years.
Dividend yield of >8% remains attractive.

What is the news?

Cache Logistics Trust (Cache) announced its 3Q FY15 (Y/E Dec) results on 21 October, after trading hours. Cache will trade ex-dividend on 27 October.

CapitaLand Mall Trust - Maybank Kim Eng 2015-10-22: Tapering Reversions

CAPITALAND MALL TRUST C38U.SI

CapitaLand Mall Trust - Tapering Reversions

9M15 results in line. Revenue & NPI declined on the back of lower occupancies & tapering rent reversions.
Improved shopper traffic & tenant sales not translating into stronger rent reversions.
Remain cautious on retail sector. Maintain SELL, with no change to DPU or SGD1.66 TP, based on yield target of 6.75%.

First REIT - Phillip Securities 2015-10-22: First Asset Enhancement Initiative with Lippo Karawaci

FIRST REAL ESTATE INV TRUST FIRST REIT AW9U.SI

First REIT - First Asset Enhancement Initiative with Lippo Karawaci

First REIT announced an asset swap deal with PT Lippo Karawaci Tbk (LPKR), First REIT’s sponsor, in relation to Siloam Hospital Surabaya yesterday morning. This deal marks the first asset enhancement initiative First REIT has conducted and aptly so, to the oldest hospital (established 1977) in its portfolio.

Singapore Exchange - DBS Research 2015-10-22: Volatility-led improvement

SINGAPORE EXCHANGE LIMITED SGX S68.SI

Singapore Exchange - Volatility-led improvement

1Q16 net profit of S$99m (+28% y-o-y); revenue +30% to S$220m, in line. 5-Sct DPS declared.
Securities up; continued growth from Derivatives
Challenging outlook for Securities; diversifying business mix to reduce reliance on Derivatives.
Maintain HOLD, TP S$7.80.

SGX Top Gainers, Top Losers, Top Volume, Top Value & Market Indices 2015-10-22

FTSE ST Indices 22-October-2015, Thursday

STI Index

+12.41
(+0.41%)

3038.11

All-Share Index

+1.71
(+0.23%)

732.05

Mid Cap Index

+3.33
(+0.47%)

705.26

Small Cap Index

+2.02 (+0.47%)

430.00

Fledgling Index

+0.08 (+0.01%)

839.45

Catalist Index

+5.22 (+0.95%)

555.15

Basic

+4.99
(+4.24%)

122.69

China Index

+0.32
(+0.14%)

223.22

China Top Index

+1.05
(+0.58%)

181.84

Consumer Goods Index

+2.84
(+0.63%)

455.68

Consumer Services Index

+8.61
(+1.13%)

773.10

Financials Index

+1.71
(+0.21%)

808.18

Health Care Index

+7.30
(+0.52%)

1404.06

Industrials Index

-4.98
(-0.70%)

706.82

Maritime Index

+0.67
(+0.29%)

235.60

Oil & Gas Index

+1.54
(+0.34%)

455.28

Real Estate Holding

+2.24
(+0.30%)

747.27

Real Estate Index

+2.68
(+0.37%)

731.59

Real Estate Investment

+3.13
(+0.43%)

729.89

Technology Index

-1.28
(-0.41%)

309.78

Telecommunications Inde

+6.82
(+0.68%)

1015.81

Utilities Index

+1.65
(+0.36%)

459.93

Genting Singapore - Maybank Kim Eng 2015-10-22: Surprisingly positive vibes from MBS

GENTING SINGAPORE PLC G13.SI

Surprisingly positive vibes from MBS

MBS results positively surprised us with VIP volume growth and stable mass market GGR.
Positive read through for GENS. We gather that RWS may report 3Q15 EBITDA of ~SGD275m (+8% YoY, +39% QoQ).
Even so, trim FY16/FY17 EBITDA by 2% to reflect weaker VIP operations and TP by 2% to SGD0.86. Maintain BUY call.

SGX - RHB Invest 2015-10-22: Derivatives Surge YoY But Soften Sequentially

SINGAPORE EXCHANGE LIMITED SGX S68.SI

SGX - Derivatives Surge YoY But Soften Sequentially

1QFY16 net profit of SGD99.3m (+28% YoY) was in line, representing 28% of our FY16 forecast.
1QFY16 SADV of SGD1.23bn rose 27% YoY, while derivatives average daily contracts traded surged 82% YoY to 862,000.
Maintain BUY with an unchanged TP of SGD8.13, pegged to 23x FY17 P/E.
While our TP is only 8% higher than current traded price, investors get an additional 4% dividend yield.

Cache Logistics Trust - UOB Kay Hian 2015-10-22: 3Q15 ~ Looking to cash in on Australia.

CACHE LOGISTICS TRUST K2LU.SI

CACHE LOGISTICS TRUST 3Q15 ~ Looking to cash in on Australia.

RESULTS

• Results in line with expectations.

Cache Logistics Trust (Cache) reported a 3Q15 DPU of 2.14 S cents (0.0% yoy, 0.0% qoq). The results are in line with our expectations, with 9M15 DPU of 6.426 S cents representing 75.1% of our full-year 2015 forecast.
Completion of the DHL BTS project saw portfolio occupancy decline 3.1ppt qoq, reaching 95.2% in the quarter. Gearing saw an uptick of 0.3 ppt qoq to hit 38.3% in the quarter, while 65% of borrowing has been hedged against interest rate risk. No refinancing is required till 2017 (17.7% of borrowings due).

Bumitama Agri - UOB Kay Hian 2015-10-22: 3Q15 Results Preview: Hot Weather Making A Small Dent

BUMITAMA AGRI LTD P8Z.SI

Bumitama Agri (BAL SP) - 3Q15 Results Preview: Hot Weather Making A Small Dent

Bumitama reported 3Q15 FFB nucleus and CPO production growth of 15% and 21% yoy respectively.
9M15 production growth was below expectation as 3Q15 production pick-up was not as strong as expected due to the prolonged dry weather. Hence, we reduce our production growth forecasts for 2015-16 to 9% and 18% respectively, and cut our net profit forecasts by 11-18% for 2015-17.
Maintain BUY. Target price: S$1.10.

Tigerair - UOB Kay Hian 2015-10-22: 2QFY16 Earnings Preview: Expect An Uninspiring Quarter

TIGER AIRWAYS HOLDINGS LIMITED Tigerair J7X.SI

Tigerair (TGR SP) - 2QFY16 Earnings Preview: Expect An Uninspiring Quarter

Tigerair will report its results on 23 October and we are not expecting any positive surprises. While load factors improved, we believe that Tigerair will still be in the red due to a weak pricing environment.
Maintain HOLD. Target price: S$0.315. Suggested entry level at S$0.28.

Mapletree Industrial Trust - CIMB Research 2015-10-21: New AEI a potential medium-term booster

MAPLETREE INDUSTRIAL TRUST ME8U.SI

Mapletree Industrial Trust - New AEI a potential medium-term booster

2QFY16 results boosted by Equinix contributions and organic growth.
Rental reversions were positive but gap between passing and new rents continued to narrow.
Rising cost pressure to dampen NPI margin.
New Kallang Basin AEI to provide medium-term booster.
Maintain Hold with unchanged DDM-based target price of S$1.66.

Mapletree Commercial Trust - Maybank Kim Eng 2015-10-21: Helped by haze and holidays

MAPLETREE COMMERCIAL TRUST N2UY.SI

Mapletree Commercial Trust - Helped by haze and holidays

2Q results in-line. Revenue subdued, cost savings drive NPI.
Improved operating metrics largely due to haze and holidays.
Maintain SELL with unchanged TP. Continue to least prefer retail SREITs due to over supply and demand headwinds.

IHH Healthcare - CIMB Research 2015-10-21: Turning upbeat on Hong Kong

IHH HEALTHCARE BERHAD Q0F.SI

IHH Healthcare - Turning upbeat on Hong Kong

IHH’s 60:40 500-bed Gleneagles Hong Kong (completion early-2017) will be the next Singapore success story and a significant earnings contributor in five years.
Singapore has ~920 beds (16% of bed capacity) but forms 45% of group net profit.
Management sees medical costs in Hong Kong being 30-50% higher than Singapore, but with similar normalised EBITDAR margins (c.30%). We agree.
HK’s ageing population, wealth and acute bed shortage will support higher prices.

Wednesday 21 October 2015

Singapore Exchange - CIMB Research 2015-10-21: In the price

SINGAPORE EXCHANGE LIMITED SGX S68.SI

Singapore Exchange - In the price

1QFY16 net profit of S$99.3m was in line at 26% of our full-year forecast.
DPS was raised to 5 Scts from 4 Scts previously, in line with prior guidance
We cut our FY16-18 EPS by 2-3% on expectations of lower derivative traded volume and clearing rate, and higher expenses
We upgrade to Hold from Reduce, as valuations are more palatable at 20x forward P/E, 0.5sd below its historical mean.

Mapletree Commercial Trust - CIMB Research 2015-10-21: Better operating performance

MAPLETREE COMMERCIAL TRUST N2UY.SI

Mapletree Commercial Trust - Better operating performance

2QFY16 performance lifted by higher revenue and lower operating expenses.
Portfolio occupancy rose in 2Q, and could to pick up further in 2H on higher committed take-up.
Recovery of shopper traffic and tenant sales growth in Vivocity.
Outlook remains stable, with 25.9% of leases to be renewed in 2HFY16-FY17.
Maintain Hold with a lower DDM-based target price of S$1.44.