Property Singapore - UOB Kay Hian 2016-07-07: Taking Charge Of Nouvel 18

Singapore Property WING TAI HLDGS LTD W05.SI  CITY DEVELOPMENTS LIMITEDC09.SI  HO BEE LAND LIMITED H13.SI  CAPITALAND LIMITED C31.SI 

Property − Singapore: Taking Charge Of Nouvel 18

• The deal paves the way for CDL to unlock value from Nouvel 18 in a potential third PPS transaction, while allowing Wing Tai to recycle capital and avoid hefty extension charges. 
• Watch out for a special dividend from Wing Tai. 
• We see signs of residential price floor formation and believe the market has over-discounted the negative prospects for the sector. 
• We maintain OVERWEIGHT with CapitaLand and City Developments as our top picks.

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NOL Neptune Orient Lines - UOB Kay Hian 2016-05-09: 1Q16 ~ Losses Mount As NOL Awaits CMA-CGM’s Eventual Acquisition

NOL NEPTUNE ORIENT LINES LIMITED N03.SI 

Neptune Orient Lines (NOL SP) 1Q16: Losses Mount As NOL Awaits CMA-CGM’s Eventual Acquisition 

• NOL’s net loss widened to US$105m for 1QFY16, amid the weakening shipping environment. 
• The poor results were led by declines in freight rates and volumes, which more than offset quarterly cost savings. 
• Net gearing crept up to 117%. 
• Shipping outlook remains gloomy, with no near-term recovery in sight. 

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Riverstone Holdings - UOB Kay Hian 2016-05-09: 1Q16 ~ Muted Growth; Downgrade To HOLD

RIVERSTONE HOLDINGS LIMITED AP4.SI 

Riverstone Holdings (RSTON SP) 1Q16: Muted Growth; Downgrade To HOLD 

• 1Q16 net profit came in flat yoy, largely attributable to softer cleanroom glove demand as well as forex impact. 
• In view of the ongoing ASP pressure on healthcare gloves and tepid demand for cleanroom gloves, the short-term outlook is lacklustre and we have trimmed our 2016-18 net profit forecasts by up to 12%. Thus, we recommend investors HOLD through this challenging period. 
• Nevertheless, we are confident about Riverstone’s long-term prospects. 

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Ascendas REIT - UOB Kay Hian 2016-05-06: 4QFY16 ~ Strategic Expansion Of Business Park Footprint

ASCENDAS REAL ESTATE INV TRUST ASCENDAS REIT A17U.SI 

Ascendas REIT (AREIT SP) - 4QFY16: Strategic Expansion Of Business Park Footprint 

• Results in line with expectations. 
• Despite positive rental reversions booked, management continues to guide for moderate rental reversions going forward, flagging the challenging leasing environment to contend with. 
• Watch out for potential dilution (< 5%) in 4QFY16 DPU on book closure date should AREIT’s S$300m ECS be fully exercised. 

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Bumitama Agri - UOB Kay Hian 2016-05-06: Bunches Ready For Upcoming Harvest

BUMITAMA AGRI LTD P8Z.SI 

Bumitama Agri (BAL SP) - Bunches Ready For Upcoming Harvest

• After our visit to BAL’s estate in central Kalimantan, we are confident that FFB production will pick up in 2H16 and deliver positive growth in 2016. 
• In 1Q16, BAL’s FFB production was low due to the drought. However, the impact from the 2015 drought was partly mitigated as management had prepared for this event by undertaking measures to mitigate the impact. 

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StarHub - UOB Kay Hian 2016-05-06: 1Q16 Revenue Headwinds Broaden, But Saved By Lower Subsidies

STARHUB LTD CC3.SI 

StarHub (STH SP) - 1Q16: Revenue Headwinds Broaden, But Saved By Lower Subsidies

• Revenue contraction has broadened from mobile to pay-TV. 
• Bottom-line was saved by lower handset subsidies due to the limited range of new smartphones available. 
• We expect the last tranche of adoption grant for NGNBN to be processed and paid by iDA in 2Q16. Thus, earnings headwinds could intensify in 2H16. 

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Singapore Banking - UOB Kay Hian 2016-05-04: 1Q16 Roundup ~ Pull-back From Trade Loans; Well Capitalised

OCBC OVERSEA-CHINESE BANKING CORP O39.SI  DBS GROUP HOLDINGS LTD D05.SI 

Banking – Singapore 1Q16 Roundup: Pull-back From Trade Loans; Well Capitalised 

• Banks reported single-digit growth in net interest income despite a contraction in trade loans. 
• Fees were generally lower yoy with drag from market-sensitive sources. The exception was DBS, which benefitted from its bancassurance partnership with ManuLife. 
• The deterioration in asset quality was mild while fully-loaded CET-1 CAR improved 0.4-0.8ppt qoq to above 12%. 

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Sembcorp Industries - UOB Kay Hian 2016-05-05: 1Q16 Net Profit Of S$107m In Line; All Eyes Are On India

SEMBCORP INDUSTRIES LTD U96.SI 

Sembcorp Industries (SCI SP) 1Q16 - Net Profit Of S$107m In Line; All Eyes Are On India

• Results were within our expectation. 
• Utilities net profit from overseas increased 12% yoy, offsetting a 7% yoy fall in utilities net profit from Singapore. 
• All eyes are on India, where we expect to see a net profit contribution of S$49m for 2016 despite the losses in 1Q16. 

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Singapore Strategy - UOB Kay Hian 2016-03-15: Back To Square One

Singapore Strategy

Singapore Strategy - Back To Square One 

The recent bounce in the FSSTI has brought the market back to the early-16 levels. 

We highlight our preferred stocks that can navigate volatile markets and with better earnings visibility. 

WHAT’S NEW 

 Back to square one after the recent bounce. 

• The FSSTI has bounced 12.6% from its ytd low of 2,528. The FSSTI is down 1.2% on a ytd basis. This report highlights our latest views and how we would navigate the volatility, which we expect to remain elevated. 

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Del Monte Pacific - UOB Kay Hian 2016-03-15: 3QFY16: A Challenging Quarter Mired By One-off Charges But Nonetheless A Turnaround

DEL MONTE PACIFIC LIMITED D03.SI 

Del Monte Pacific (DELM SP) 3QFY16: A Challenging Quarter Mired By One-off Charges But Nonetheless A Turnaround 

• DMPL’s net profit improved from the loss of US$2.2m in 3QFY15 to a gain of US$0.6m for 3QFY16. 
• Sales were down by 7% yoy due to lost contracts in the US but market share for the core US retail business remained stable amid a challenging quarter. 

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Keppel Corporation - UOB Kay Hian 2016-03-14: Earnings Update ~ Impact Of Transocean’s And Golar’s Deferrals

KEPPEL CORPORATION LIMITED BN4.SI 

Keppel Corporation: Earnings Update ~ Impact Of Transocean’s And Golar’s Deferrals 

• Keppel’s two FLNG projects from Golar have had their Notice to Proceed timelines deferred to end-16. 
• Given the sizeable combined contract size of US$1.4b, we are removing it from our earnings estimate till the projects have formally started, and hence our 2016-18 earnings forecasts are reduced by 2-4%. 

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Offshore & Marine - UOB Kay Hian 2016-03-14: Global Bellwethers ~ When The Going Gets Tough, The Tough Get Going

Offshore & MarineEZION HOLDINGS LIMITED 5ME.SI  NAM CHEONG LIMITED N4E.SI  KEPPEL CORPORATION LIMITED BN4.SI  EZION HOLDINGS LIMITED 5ME.SI 

Offshore & Marine – Global Bellwethers: When The Going Gets Tough, The Tough Get Going 

• We studied management comments in the recent 4Q15 results announcements of global oil-service bellwethers. 
• In 2015, the bellwethers were the first off the block to have adopted austerity measures to weather a deep downturn. 

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Property & REITs - UOB Kay Hian 2016-03-11: Malaysia Marketing Trip Takeaways

Singapore Property WING TAI HLDGS LTD W05.SI  CITY DEVELOPMENTS LIMITEDC09.SI  ASCOTT RESIDENCE TRUST A68U.SI  MAPLETREE LOGISTICS TRUST M44U.SI  CAPITALAND COMMERCIAL TRUST C61U.SI 

Singapore Property & REITs ‒ Malaysia Marketing Trip Takeaways 

• Our marketing trip in Malaysia saw sustained interest in S-REITs as clients position for a slower-than-anticipated interest rate hike. 
• Our discussions centred upon interest rate impact, potential unwinding of property cooling measures, the sharing economy’s impact on the hospitality sector and supply concerns in the commercial, retail and industrial space. 

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Singapore Banking - UOB Kay Hian 2016-03-10: The Beginning Of The Return To Normalcy

OCBC OVERSEA-CHINESE BANKING CORP O39.SI  DBS GROUP HOLDINGS LTD D05.SI 

Banking – Singapore The Beginning Of The Return To Normalcy 

• Share prices of banks started correcting on 11 Aug 15 after the PBOC introduced a new market-oriented reference rate mechanism, which triggered the depreciation of the renminbi and concerns over competitive devaluation across ASEAN countries. 
• Sentiments on banks should recover now that the renminbi is no longer under attack. 
• Top picks are OCBC and DBS. Maintain OVERWEIGHT. 

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KEONG HONG - UOB Kay Hian 2015-12-02: A Fruitful Year And Yet Another In FY16

KEONG HONG HOLDINGS LIMITED 5TT.SI 

KEONG HONG (KHHL SP) - A Fruitful Year And Yet Another In FY16 

VALUATION

• Maintain BUY with a slightly lower SOTP target price of S$0.635 as we factor in the S$0.04/share dividend that has been declared in FY15. 

RESULTS 

• 4QFY15 net profit surged 411% to S$22.5m mainly due to the recognition of property development profit from its sold out 20% owned executive condominium project, Twin Waterfalls. 
• Strong cash flow generation boost net cash position. Keong Hong generated free cash flow of S$37.5m during FY15 as net cash swelled to S$33.6m (S$0.149/share) as at 30 Sep 15. 

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Riverstone Holdings - UOB Kay Hian 2015-12-02: Everything Has A Price; Downgrade To HOLD

RIVERSTONE HOLDINGS LIMITED AP4.SI 

Riverstone Holdings (RSTON SP) - Everything Has A Price; Downgrade To HOLD 

• We downgrade the stock to HOLD from BUY after its stellar outperformance. 
• The group remains on track to see its healthcare glove production capacity grow to 8.2b pieces/year by 2018 and an earnings CAGR of 30% over the next 3 years, but these positives appear to be priced in. 
• We have a target price of S$2.34, based on the sector’s FY16F PE of 19.4x. 
• Entry price: S$2.10. 

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Property Singapore - UOB Kay Hian Research 2015-11-30: 1H16 Strategy ~ Interest-ing Times For Real Estate

Singapore Property WING TAI HLDGS LTD W05.SI  CITY DEVELOPMENTS LIMITEDC09.SI  ASCOTT RESIDENCE TRUST A68U.SI  MAPLETREE LOGISTICS TRUST M44U.SI  CAPITALAND COMMERCIAL TRUST C61U.SI 

Property – Singapore 1H16 Strategy: Interest-ing Times For Real Estate 

• We recommend an OVERWEIGHT stance on the sector as we believe concerns over a rise in interest rates have been overblown. 
• We prefer developers over REITs. 
• Developers are trading near undeserving crisis valuations and offer an attractive 6:1 reward-to-risk proposition. S-REIT yield spreads remain the most attractive regionally, with upcycle yield spreads indicating 30% upside potential. 
• Our top picks are CDL, Wing Tai, ART, MLT and CCT which offer deep-value and diversification. 

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Plantation - UOB Kay Hian 2015-11-30: A Boost From El Nino And Biodiesel

Plantation Sector WILMAR INTERNATIONAL LIMITED F34.SI  FIRST RESOURCES LIMITED EB5.SI  GOLDEN AGRI-RESOURCES LTD E5H.SI  BUMITAMA AGRI LTD P8Z.SI 

Plantation - A Boost From El Nino And Biodiesel 

• The plantation sector’s outlook is turning positive. CPO prices are expected to be supported by a stronger-than-expected El Nino and higher demand on Indonesia’s higher biodiesel blending mandate. 
• We raise our ASP assumptions to RM2,500-2,600 for 2015-16. Among the three markets, we prefer Singapore-listed companies as FR and BAL have a young age profile and will benefit from Indonesia’s biodiesel policies. 
• Maintain OVERWEIGHT. 

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JUMBO GROUP - UOB Kay Hian 2015-11-30: Looking Forward To FY16

JUMBO GROUP LIMITED 42R.SI 

JUMBO GROUP (JUMBO SP) - Looking Forward To FY16 

VALUATION 

 Maintain BUY and target price of S$0.49. 

• Our target price has an implied FY16F PE of 20.5x which is comparable to its regional peers such as Cafe De Coral and Breadtalk. 

RESULTS 

 FY15 adjusted net profit comparable to FY14. 

• Assuming the restructuring exercise had been completed at start of FY15, FY15 proforma profit to owners would have been S$13.1m, forming 103% of our full-year forecast. After excluding one-off IPO expenses, FY15 adjusted net profit will have been about S$14.0m and fairly comparable to FY14. 

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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. 

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