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OCBC Reports July 2013
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PostPosted: Mon Jul 01, 2013 9:28 am    Post subject: OCBC Reports July 2013 Reply with quote

SG Residential Property: A total debt profile framework

Summary: MAS announced a set of Total Debt Servicing Ratio (TDSR) requirements whereby FIs will now account for borrowers’ other debt obligations when granting property loans. A TDSR limit of 60% will be imposed. We see an immediate impact that borrowers now cannot circumvent LTV and ABSD rules by purchasing homes under others while acting as loan guarantors. In addition, the TDSR framework would also be applied to the refinancing of loans. From our channel checks, this could affect, off the bat, 5%-20% of the current cross-section of buyer profiles. Over the mid-to-longer term, we see these measures further constricting financing for buyers with existing property loans. That said, the current 60% TDSR limit appears to be fairly reasonable and is not intended to cool down the property market as much as to encourage financial prudence. Maintain NEUTRAL on the domestic residential sector. We continue to prefer developers with diversified portfolio exposure and strong balance sheets. Maintain BUY on CapitaLand [BUY, FV: S$3.77], Keppel Land [BUY, FV: S$4.59] and CapitaMalls Asia [BUY, FV: S$2.55].

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SATS Ltd – Middle-East exit for now

Summary: SATS announced that it will sell its 40% equity interest in its Adel Abuljadayel Flight Catering Company joint venture for a cash consideration of US$18.4m (~S$23.4m), which is slightly below the book value of the asset as of 31 Mar (S$24.1m). Despite the short two-year tenure of the JV, the exit does not signal a change in management intent regarding the region. Management still intends to re-enter the Middle East, and will continue to pursue other attractive investment opportunities. In the interim, the outlook for SATS remains positive and we believe the counter’s earnings stability and healthy dividends will allow it to stay resilient amidst recent market volatility. Maintain HOLD with an unchanged fair value of S$3.15. (Lim Siyi)

Vard Holdings: Profit Guidance

Summary: Vard Holdings warned that its 2Q2013 financial results are likely to be below current consensus estimates due to difficulties in its operations in Brazil. The group had previously guided that its Brazil operations are coming under control and would stabilize by year-end. However, after a recent assessment, management found further delays, cost over-runs at its Niteroi yard due to lower-than-expected productivity, additional costs for outsourcing and higher start-up costs at the Promar yard. These issues have adversely impacted its 2Q margin. Operations elsewhere are stable and Vard Holdings as a group remains profitable. Our FY13F net profit estimate is 6% below consensus, but we would likely revise lower after speaking with management later to get more colour. Thus, we put our Buy rating and S$1.52 fair value UNDER REVIEW. (Chia Jiunyang)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.


NEWS HEADLINES

- Fraser & Neave will appoint advisers to study and review alternative strategic options available to unlock shareholder value, which may involve a segregation of its property and non-property businesses.

- Sound Global says controlling shareholders are exploring a delisting proposal from the SGX, including acquiring shares not already owned for no less than S$0.70 per share.

- Low Keng Huat has been awarded a S$114.3m construction contract for the design and construction of one block of a hotel development; the project expected to be completed in 1H 2015.

- Singhaiyi Group shareholders approve the raising of up to S$226.5m for investing in US real estate via a rights issue and placement.

- Goodland Group agrees to buy a 49% stake in a Cambodian company to undertake residential property development in Siam Reap, Cambodia.

- The yen continued to appreciate against the dollar while Japanese stock futures rose after US equities and Treasuries fell at the end of last week on concerns of QE tapering measures kicking in as early as Sep.
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PostPosted: Tue Jul 02, 2013 9:19 am    Post subject: Reply with quote

Mapletree Logistics Trust: Strong take-up rates at MBLH
Mapletree Logistics Trust (MLT) announced that Menlo Worldwide Logistics has signed a binding commitment to lease 48,700sqm at MLT’s Mapletree Benoi Logistics Hub (MBLH) for a period of 10 years. Together with Menlo’s commitment which accounts for 55% of MBLH’s NLA, we understand the property is now 75% pre-leased, with the balance in the advanced stage of negotiation. We are positive on this development as it reflects continued healthy leasing demand and strong interest from major third-party logistics service providers. Judging from the strong pre-commitment levels, we believe that MLT will be able to meet its estimated yield-on-cost of 8-9%. In addition, we expect the long lease to further enhance MLT’s already resilient lease structure. However, as we have previously factored in the redevelopment project, we make no change to our forecasts. We maintain HOLD on MLT with an unchanged fair value of S$1.15. (Kevin Tan)

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Vard Holdings: Lower profit guidance
Vard Holdings warned that its 2Q2013 financial results (due 11/7/2013) are likely to be below current consensus estimates due to difficulties in its operations in Brazil. After a recent assessment, management found further delays, cost over-runs at its Niteroi yard due to lower-than-expected productivity, additional costs for outsourcing and higher start-up costs at the Promar yard. This comes as a surprise as the group had previously guided that its Brazil operations are coming under control and would stabilize by year-end, suggesting that the situation is more fluid than initially thought. In view of the poor earnings visibility, we switched our valuation methodology to PBR. We also cut our FY13F/14F net profit estimates by 20-25%. Downgrade to HOLD with lower FV estimate of S$0.93 (previously S$1.52) using 1.5x PBR (2 std dev below). (Chia Jiunyang)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.


NEWS HEADLINES

- Equity futures in Japan and Australia rose, following a rebound in US stocks on hints of improving manufacturing outlook for some of the world’s biggest economies.

- OKP Holdings says gross order book currently amounts to S$415.2m after it has secured an S$6.7m contract by the national water agency to carry out improvement works to Stamford Canal from Napier Road to Marina Reservoir.

- CNA Group has announced and inked a Memorandum of Understanding (MOU) with TAMA Home to develop homes for the Japanese community in Thailand.

- ISDN Holdings Limited has, through its 80 per cent ownership of PT Potensia Tomini Energi, been invited by the Governor of Central Sulawesi, Indonesia to develop a 126 MW hydropower plant at the Laa River in Central Sulawesi, Indonesia.
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PostPosted: Wed Jul 03, 2013 9:03 am    Post subject: Reply with quote

Fortune REIT: Affected by rising discount rates
The prospect of an early tapering of US Federal Reserve’s quantitative easing program has driven up bond yields and, as a result, high-yield counters such as Fortune REIT (FRT) have seen a correction in their prices. FRT’s unit price has fallen 15.1% since the peak of HK$8.43 on 15th May this year (but still up 12.4% YTD). We note that rising risk-free rates will not have much impact on cost of debt for FRT given that interest cost for ~76% of FRT's debt exposure has been hedged to fixed rates with effective interest cost at 2.76%. FRT has no refinancing needs till 2015 and has a weighted term to maturity of 2.7 years. FRT's gearing continues to remain low at 23%. Accounting for the higher HK 10-year government risk-free rate (which climbed from 0.8% at the beginning of May to 2.0% currently), we raise our cost of equity assumption to 7.5% from 6.6%. We also raise our LT nominal growth rate for dividends from 1.75% to 2.0%. Our FV falls to HK$7.51 from HK$8.64. We maintain a BUY rating on FRT. (Sarah Ong)

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OSIM International: 2Q13 results preview
OSIM International Ltd (OSIM) is scheduled to report its 2Q13 results on 30 Jul after trading hours. We forecast a 9.5% and 11.0% YoY growth in its revenue and PATMI to S$169m and S$25m, respectively. This would be driven largely by a full quarter of contribution from its recently launched uAngel Sofa-Tranzformer massage chair. We see OSIM as a beneficiary of China’s immense consumer market, underpinned by a rising middle-class population and affluence. The group has established a strong brand profile in China given its near 20 years of experience there. Its share price has also remained fairly resilient despite the recent global equities sell-down, supported by its solid financial performance and decent FY13F yield of 3.0%. Maintain our BUY rating and S$2.21 fair value estimate on OSIM. (Wong Teck Ching Andy)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.


NEWS HEADLINES

- Asiamedic will start Singapore's third private cord blood bank in a S$1.8m JV backed by Indian conglomerate RJ Corp chairman Ravi Jaipura and Modern Montessori International Group chairman T Chandroo.

- Sinjia Land reports the signing of a Letter of Intent for participation in a development project with a total estimated gross development value of RM2.5b in Iskandar, Malaysia.

- Transcu Group said S L Development Pte Ltd, which had served its unit Transcu Ltd a writ of summons last September for rental arrears and damages, has since agreed to a standstill on the enforcement of its judgment debt until July 17.

- Far East Orchard is planning to expand into Australia through JVs with the Toga Group and Straits Trading Company.

- Equity futures in Japan and Hong Kong rose, brushing off a decline in US stocks as the yen was supported at its one-month low and investors await reports on US employment to assess the outlook for monetary stimulus.
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PostPosted: Thu Jul 04, 2013 10:01 am    Post subject: Reply with quote

SingTel: No Myanmar, no problem
SingTel, despite being widely touted as a front-runner, was not among the two winners of the 15-year telecommunications licences in Myanmar. But not winning it may not be a bad thing, given the massive scale of the infrastructure roll-out, and the still uncertain regulatory environment in the nascent mobile market. However, we believe that there are still opportunities for SingTel to get involved at a later stage when the industry is more settled and the regulatory environment is more established. Separately, we see the recent volatility in the regional currencies as the biggest risk factor, as SingTel is especially exposed to AUD/SGD movements because of Optus. However, we do note that some value is starting to emerge around current levels, as SingTel has fallen back to below our SOTP fair value of S$3.83. Hence we maintain our HOLD rating and would be buyers closer to S$3.50. (Carey Wong)

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ST Engineering: Reducing peg from 22x to 20x
The share price of Singapore Technologies Engineering (STE) has fallen 12.1% since the peak of S$4.56 on 24 Apr 2013. But we note recent contract wins that attest to the group’s market leading positions. Just yesterday, ST Aerospace announced that it has signed a long-term agreement with UTC Aerospace Systems to provide maintenance, repair and overhaul (MRO) services on the Boeing 787 Dreamliner nacelle systems for the Rolls-Royce Trent 1000 and General Electric GEnx engines. Nevertheless, as the market seems to be taking a more “risk off” approach, we are now using a lower 20x peg (versus 22x previously) against our FY13F EPS, which results in our fair value easing from to S$3.97 from S$4.36. We maintain a HOLD rating on STE, supported by an estimated FY13 dividend yield of 4.5%. (Sarah Ong)

Midas Holdings: Wins CNY44.3m metro contract
Midas Holdings (Midas) announced last evening that it has secured a CNY44.3m metro contract for the Changchun Metro Lines 1 and 2. This involves the supply of aluminium alloy extrusion profiles for 44 train sets (or 264 train cars), with delivery slated to occur from 2013 to 2015. This latest development brings total YTD contract wins by Midas to ~CNY423.2m and also illustrates the positive momentum in China’s metro industry, given the development of new metro lines and upgrading of existing systems. We are keeping our estimates intact as our projections allow for such contract wins. Maintain BUY and S$0.54 fair value estimate on Midas, based on 1.1x FY13F P/B. (Wong Teck Ching Andy)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.


NEWS HEADLINES

- US stocks rose, sending the S&P 500 Index to the highest level in two weeks on better-than-estimated labor data despite concerns over Greece’s ability to obtain its next bailout tranche and political developments in Egypt and Portugal.

- Croesus Retail Trust sees about 3.5% growth in variable rent in FY14-15, according to its investor presentation.

- Parkway Life REIT continues building up its Japanese portfolio with the purchase of another two nursing homes for S$23.1m.

- Intraco Limited's mandatory conditional cash offer for its listed associated company Dynamic Colours fell through due to lack of acceptances to make its offer unconditional.

- KXD Digital Entertainment manages to extend deadline for the submission of its resumption of trading proposal to 31 Jul.
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PostPosted: Fri Jul 05, 2013 9:46 am    Post subject: Reply with quote

COSCO Corp (Singapore): Don’t catch a falling knife
COSCO Corp (Singapore)’s share price has fallen by about 14% since our last update (“Downgrade to Sell – Missed Expectations”, 6/5/2013) such that it is close to our previous S$0.76 FV. However, we do not think it is time to upgrade our call. The macro environment is looking increasingly gloomy. In China, an unexpected credit squeeze in the Chinese interbank market raised concerns over the fragility of the Chinese banking system. The surprise was that the PBOC took an unusually tough line by refusing to inject liquidity, at least for a few days. Should the credit conditions deteriorate, we think that COSCO, with its large debt burden, will be vulnerable. The group’s net gearing climbed to 131% as of end 1Q13, from just 10% as of end FY10. We estimate about half of its existing debt (S$3.4b) would need to be refinanced within the next 12 months. Considering the risks, we cut our PBR peg to 1.0x (or 2 std dev below) and FV to S$0.60 (previously S$0.76). Maintain SELL. (Chia Jiunyang)

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Petra Foods: Fully valued ahead of 2Q results
Since our sell call a month ago, Petra Foods’ share price has fallen by as much as 17.9% before recovering to close about 7% lower. Although the outlook is still challenging for Petra – the World Bank recently trimmed its forecast for Indonesia’s economic growth this year to 5.9% from 6.2% previously – we believe that the sell-offs are about done and Petra is fairly valued at this point. Ahead of its 2Q13 results release, we upgrade Petra to HOLD on valuation grounds, with an unchanged fair value estimate of S$3.88. Investors should also expect a larger than expected loss from the divested cocoa ingredients segment in 2Q13. (Lim Siyi)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.


NEWS HEADLINES

- Asian stock futures rose, hinting further optimism amongst the regional equities as European policy makers signaled they will keep borrowing costs low for longer.

- Yangzijiang Shipbuilding Holdings says the group has secured additional shipbuilding contracts for 15 vessels valued at US$414m.

- FJ Benjamin has signed a franchise agreement to open the first standalone Raoul store in Colombo, Sri Lanka, this Dec, just two months after it sealed a similar deal in China.

- AGC Industries, a subsidiary of AusGroup Limited, has been awarded a three-year plus three-month extension on its calciner overhaul and maintenance contract with Alcoa of Australia.

- Yanlord Group has sold 94.3%, or 336 of its 356 apartment units for the third phase of the Yanlord Yangtze Riverbay Town project in the first two days of the launch last week.
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PostPosted: Mon Jul 08, 2013 8:48 am    Post subject: Reply with quote

Viz Branz Limited – Finally, a GO


Summary: Viz Branz finally announced that its current CEO will launch a general offer for the company at S$0.78/share, which represents a 15.5% premium over the one-month weighted average trading price. The CEO already has a majority stake of 58.1% after acquiring his father’s 38.3% share, so Lam Soon is not expected to launch a counter-offer. As the offer price is above with our long-stated target price of S$0.74, we deem the offer to be fair and urge investors to ACCEPT THE OFFER. Furthermore, the CEO intends to take Viz Branz private and delist from SGX, which would result in limited upside and recourse for minority shareholders going forward. (Lim Siyi)

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CapitaRetail China Trust: Time to enter on overselling

Summary: As part of the general sell-down in the markets, CRCT's unit price has fallen 25.2% since the peak of S$1.865 on 11 April 2013. Apart from the prospect of early tapering of QE by the Fed, CRCT has been affected by concerns of a moderation in retail sales growth from: 1) a de-acceleration of China’s economy and 2) President Xi Jinping’s campaign against conspicuous consumption. According to media reports, some Chinese retail landlords have recently begun offering preferential leasing terms for mass-market fashion brands, whereas previously such terms were only reserved for luxury brands. The malls which are facing such pressure typically have poorer locations in second-tier and third-tier cities. We note that CRCT’s malls are in good locations, with the bulk of assets in Beijing. Furthermore, the occupancies in CRCT’s malls are healthy (96%-100%, excluding those which are undergoing tenancy adjustments and AEI). CapitaMalls Asia, which runs the CRCT malls, has the experience and size to better weather the slowdown in China. Factoring in the more challenging operating environment, we reduce our fair value from S$1.76 to S$1.58 but upgrade CRCT to BUY from hold on valuation grounds. (Sarah Ong)


ST Engineering: ST Electronics won S$206.8m of contracts in 2Q13

Summary: ST Engineering (STE) announced that its electronics arm, Singapore Technologies has secured new contracts worth about S$206.8m in 2Q13. This includes a number of rail electronics contracts worth some S$24.8m, with S$18m worth of the contracts awarded by the LTA. Work on the projects has begun and are expected to be completed by 2016. ST Electronics also secured contracts worth about S$182m for the supply of satcoms solutions and communications systems projects to local and international customers. The magnitude of the contract wins is in line with our expectations. We maintain our fair value estimate of S$3.97 and HOLD rating on STE. (Sarah Ong)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.

NEWS HEADLINES
- US stocks closed with sizable gains Friday following a choppy, post-holiday session, as a stronger-than-expected jobs report helped the main indexes achieve a second up week in a row.

- Purchase activity by directors of SGX listed companies plunged after three weeks of heavy buying, with 10 companies that recorded 22 purchases worth S$9.9m, according to SGX filings in the first week of Jul.

- Cambridge Industrial Trust is selling its stake in a light industrial building in Hillview Avenue for S$140.8m.

- First Ship Lease Trust has taken redelivery of Aqua, a crude oil tanker leased to Turkey's Geden Holdings, which has defaulted on lease payments.

- The Ong family of Armstrong Industrial Corporation and a Japanese group have teamed up to take the company private with an exit offer of 40 S cents per share.

- Boustead Singapore's industrial real estate arm, Boustead Projects, will design and build technology firm Seagate's R&D centre at the Fusionopolis, in a deal valued at over S$100m.

- Advanced Integrated reported the purchase of a vacant bungalow lot and three super penthouse units in Penang, Malaysia.
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PostPosted: Tue Jul 09, 2013 9:10 am    Post subject: Reply with quote

Ascendas REIT: Under-rated industrial blue chip
We are turning positive on Ascendas REIT (A-REIT). Its unit price has fallen by 22.7% from its peak of S$2.86 on 15 Apr, due partly to concerns on an early tapering of US Federal Reserve’s quantitative easing programme and an accompanying hike in interest rates. Based on our analysis on interest rates, however, we believe that the impact on A-REIT’s DPU and book value is likely to be limited, as a considerable 74.8% of its total debt is fixed and the weighted average term of debt is a long 3.9 years. At present, A-REIT is trading at 1.14x P/B, even lower than some of its peers’ P/B ratios in the industrial REIT space, which are hovering around the 1.2x mark. In addition, A-REIT’s forward DPU yield of 7.2% is comparable to the subsector average yield of 7.5%. This is despite the fact that A-REIT is the largest Singapore-listed industrial landlord by market cap and portfolio size. We revise our fair value from S$2.63 to S$2.45 to reflect current higher risk-free rates but upgrade A-REIT from Hold to BUY on attractive upside potential. (Kevin Tan)

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Midas Holdings: Seeking more contract wins
Midas Holdings (Midas) recently clinched a CNY44.3m metro contract, thus bringing total YTD order wins to ~CNY423.2m. Looking ahead, Midas will continue to strive for potential new metro and international railway contract wins of ~CNY380-580m for the rest of 2013. We are buoyed by the positive news flow happening in China’s metro industry, and see Midas as a key beneficiary given its track record as a supplier to major Chinese train manufacturers. However, the time frame for new high-speed railway train car tenders by the China Railway Corporation remains uncertain, although there is optimism that it could be resumed in 3Q13. Maintain our BUY rating and S$0.54 fair value estimate on Midas, pegged to 1.1x FY13F P/B. (Wong Teck Ching Andy)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.


NEWS HEADLINES

- US stocks rose, giving the S&P500 Index a third straight day of gains, as the start of corporate earnings season fueled increased optimism about growth in the world’s largest economy.

- Chew's Group has signed an agreement last month to lease a piece of land in China’s Hainan province for a high-technology seafood research centre, marine seafood reproduction facilities and an eco-tourism project.

- Q&M Dental Group has completed the purchase of 70% of AR Dental Supplies.

- Retail Holdings NV is said to seek as much as S$200m from Singapore IPO of Singer Asia, according to three people with knowledge of the matter; IPO may take place as early as in Sep.
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PostPosted: Wed Jul 10, 2013 9:53 am    Post subject: Reply with quote

Roxy-Pacific Holdings: Acquiring KL site near upcoming Quill City
ROXY announced that it has acquired, for RM470k, a 47% stake in Macly Equity Sdn Bhd (Macly) which owns a 70k sq ft land site in Kuala Lumpur, Malaysia at Jalan Dewan Sultan Sulaiman. We understand this land site was acquired for RM89.8m by Macly and that ROXY is finalizing a JV agreement whereby it would likely fund the remaining commitment via a shareholder loan with the site valued at cost. This site has a total GFA of 686k sq ft and is strategically located beside the upcoming Quill City (a 7-acre mixed development on Jalan Sultan Ismail), the Sheraton Imperial Hotel and monorail Stations to Bukit Bintang. From our calculations, this acquisition would likely accrete 2.4 S-cents to ROXY’s RNAV. Maintain BUY with a higher fair value of S$0.76 (30% RNAV disc.) from this acquisition, versus S$0.74 previously. (Eli Lee)

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Bumi Armada Berhad: Pipelay contract from Lukoil
Bumi Armada Berhad has signed a MYR567.6m (USD178.5m) contract with OAO Lukoil for pipelay work in the Filanovsky and Korchagin fields of the Caspian Sea. The work will be carried out using Bumi Armada’s derrick pipelay barge, the Armada Installer. Majority of the construction is expected to be carried out and completed in 2015. With the new contract, the group’s T&I order backlog increases to over MYR2b (USD 629.4m). As the new contract already forms part of our previous contract win assumptions, we will be keeping our forecast unchanged. Maintain HOLD with unchanged fair value estimate of MYR3.74. (Chia Jiunyang)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.


NEWS HEADLINES

- US stocks rose for a fourth day amidst optimism that companies will report better-than-forecast earnings and that economic growth is strong enough to withstand any reduction in Federal Reserve stimulus.

- Yancoal Australia Limited, of which Singapore-listed Noble Group owns 13%, has received a privatisation proposal from its holding company Yanzhou Coal Mining Company.

- Rotary Engineering has clinched S$60m worth of jobs from petrochemical players in Singapore in 2Q13, bringing its total in the first half of this year to over S$400m.

- Unionmet (Singapore) Ltd returned to the black in the fiscal second quarter ended May 31, with a profit of US$300k on turnover of US$8.82m.
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PostPosted: Thu Jul 11, 2013 10:20 am    Post subject: Reply with quote

Ascott Residence Trust: Cut FV to S$1.31
The unit price of Ascott Residence Trust (ART) has fallen 13.3% since the high of S$1.50 on 22 May 2013 along with the general market pull-back over concerns about an early tapering of the Fed’s QE program. In this context, it is worthwhile highlighting that ART’s gearing has increased from 36% to 41% following the completion of the acquisition of three prime serviced residences in China and a portfolio of 11 rental housing properties in Japan for S$287.4m on 28 June 2013. The new gearing level is high compared to hospitality REIT peers, e.g. 28% for CDLHT and 29% for FEHT, and may be viewed less favorably by investors given an environment of higher interest rates. In addition, we expect fairly mute operational performance for ART’s assets in multiple geographies for the rest of the year. Given the increase in risk-free rates, we reduce our FV to S$1.31 from S$1.35 and maintain a HOLD rating on ART. (Sarah Ong)

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Wilmar: No boost from Clariant JV
Wilmar international Limited (WIL) has just announced that it has received the relevant merger clearances for the establishment of a 50-50 JV called “the global amines company” with Clariant International Ltd (CIL), a world leader in Specialty Chemicals. However, WIL’s share price did not show any positive reaction to the news. Instead, sentiments were likely depressed by continued concerns over the slowing economy in China. Nevertheless, we opt to keep our forecasts for FY13 and FY14 intact for now; this as any downside risk is likely to be mitigated by a firmer USD. Maintain HOLDwith an unchanged S$3.25 fair value (based on 12.5x FY13F EPS). (Carey Wong)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.


NEWS HEADLINES

- US stocks ended little changed on Wed after minutes from the Federal Reserve’s last meeting had multiple members looking for more improvement in the labor market before cutting the pace of central-bank bond purchases.

- China is likely to miss its 10% trade growth target for the second straight year amid tighter scrutiny of trade bills, economists said.

- PS Group Holdings Ltd announced that its IPO with a placement of 20.4m new shares at S$0.25 each has received strong interest from investors.

- Global Logistic Properties announced an agreement to develop BMW's largest distribution centre in China. Construction will commence this year.

- Tigerair Singapore posted a 22% YoY rise in passenger traffic in Jun, while capacity was boosted by 21.7%, giving rise to a 0.3ppt increase in load factor to 86.5% for the month.
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PostPosted: Fri Jul 12, 2013 9:04 am    Post subject: Reply with quote

Triyards Holdings: Awaiting new orders

Summary: Triyards Holdings (Triyards) reported a 61% YoY drop in revenue to US$65.7m and a 55% decrease in net profit to US$7.5m in 3QFY13, bringing 9MFY13 net profit to 72% of our full year estimate, and in line with expectations. The fall in revenue was mainly due to lower revenue recognized for the Lewek Constellation – construction progress for this vessel had peaked in 2HFY12. Meanwhile, gross profit margin was higher at 19.2% in 3QFY13 vs 12.5% in 3QFY12. Management reiterated that it is receiving healthy enquiries for the construction of SEUs, and received favourable feedback during its roadshows of its 3rdgeneration SEU. We await new orders and news of a potential yard acquisition as the group pares down its debt. Maintain BUY with S$1.07 fair value estimate. (Low Pei Han)

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Vard Holdings: Continued difficulties in Brazil

Summary: Vard Holdings Limited (VARD)’s 2Q13 results came in below ours and the street’s expectations, despite issuing a profit warning earlier. The group reported a net loss of NOK20m for 2Q, bringing its 1H13 net profit to NOK168m – just 28% and 23% of ours and the consensus FY13F estimate. The poor performance was mainly due to operational challenges in its Niteroi and Promar yards in Brazil, which would likely need more time to stabilize. Its order-book also declined by about 11% to NOK14.0b. Downgrade from Hold to SELL with lower FV of S$0.80 (previously S$0.93). (Chia Jiunyang)

ST Engineering: ST Aerospace won S$430m of contracts in 2Q13

Summary: ST Engineering (STE) announced that its aerospace arm, ST Aerospace, has secured new contracts worth about S$430m in 2Q13. This includes the exclusive component Maintenance-By-the-Hour contract worth S$32.25m awarded by Spring Airlines Japan, and the five-year Multi-crew Pilot Licence training contract from Qatar Airways announced in June 2013. In the VIP cabin reconfiguration business, ST Aerospace secured three deals involving Boeing Business Jets (BBJ): a cabin design contract in Eastern Europe, a 12-year maintenance check and interior refurbishment project on a Boeing 737 belonging to a returning Middle Eastern customer, and a maintenance and interior modification contract awarded by a US customer. The magnitude of the contract wins is in line with our expectations. We maintain our fair value estimate of S$3.97 and HOLD rating on STE. (Sarah Ong)

Ezra Holdings: Profit bumped up by one-off items

Summary: Ezra Holdings (Ezra) reported a 19% YoY rise in revenue to US$317.1m but saw a 68% drop in net profit to US$7.2m in 3QFY13, such that 9MFY13 revenue and net profit accounted for 75% and 72% of our full year estimates, respectively. However, if we were to strip out one-off items such as the disposal of Ezion shares which contributed to a US$67.4m gain, we estimate core net loss of US$54m for the quarter. Gross profit margin was only 1% vs 17% in 3QFY12. Meanwhile, the group announced it has won new contracts worth more than US$450m since its last quarterly results, bringing its order book to more than US$2b. Pending details from management, we put our Hold rating and fair value estimate of S$1.10 under review. (Low Pei Han)

Dyna-Mac Holdings: Secures S$135m fabrication orders

Summary: Dyna-Mac Holdings has secured a new order worth about S$135m from a regular client for the fabrication of topside modules, manifolds and flare towers for two FPSOs to be carried out in its Singapore and Guangzhou yards. Production will commence in late 3Q2013. As the group is expected to report its 2Q results in the coming weeks, we put off adjusting our FY13F estimates for now. Maintain HOLDrating with an unchanged fair value estimate of S$0.44. (Chia Jiunyang)

Singapore Economy: 2Q13 GDP grows 15.2% QoQ, boosted by manufacturing

Summary: Based on advance estimates from the MTI, the Singapore economy grew 3.7% YoY in 2Q13, compared to 0.2% in 1Q13. On a QoQ seasonally-adjusted annualized basis, the economy grew by 15.2%, faster than the 1.8% growth in the previous quarter. This also beat street’s expectations for a 8.1% expansion, based on a Bloomberg survey. Manufacturing expanded by 37.6% QoQ, reversing the 12.7% contraction in 1Q13, mainly due to strong growth in the biomedical and electronics clusters. Construction grew by 9.0% QoQ, moderating from the 14.3% expansion in 1Q13. Meanwhile, services rose 9.0% vs 8.1% in the previous quarter, primarily supported by a robust recovery in the wholesale & retail trade sector and the transportation & storage sector. (Low Pei Han)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.


NEWS HEADLINES

- US stocks leapt on Thursday, with the S&P 500 up for a sixth day and setting a record finish, after Federal Reserve Chairman Ben Bernanke said the Fed would remain accommodative.

- Companies continue to consider Iskandar Malaysia as an alternative even though a shortage of skilled labour may pose other challenges, including spiralling wages.

- AusGroup has signed a sale-and-leaseback deal with Boustead Trustees Pte Ltd to sell the latter its Singapore fabrication facilities at 36 Tuas Road for S$39.4m.

- Retailer Courts Asia's first "big-box" megastore in Malaysia, which is expected to contribute to earnings for the current financial year, has opened ahead of its Aug schedule.

- Genting Singapore yesterday broke ground on what is slated to be the first hotel to open in the Jurong Lake District.
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PostPosted: Mon Jul 15, 2013 10:02 am    Post subject: Reply with quote

Technology Sector: PC slump continues

Summary: The worldwide shipment of PCs remained sluggish, falling 10.9% YoY to 76.0m units in 2Q13, according to research firm Gartner Inc. This was the fifth consecutive quarter of YoY decline. Besides the cannibalisation of PCs by mobile devices, we believe that the still uncertain macroeconomic backdrop has also played an inherent role in causing the sluggish demand for PCs. Just last week, the IMF trimmed its global economic growth forecasts for both 2013 and 2014. Although Singapore’s 2Q13 GDP growth managed to exceed the street’s expectations, we remain cautious on the downside risks on the tech sector given heightened concerns over China’s economy and persistent weakness in the eurozone area. Hence, we maintain NEUTRAL on the sector. We replace Venture Corp [HOLD; FV: S$7.37] with ECS [BUY; FV: S$0.57] as our top pick in the sector following our downgrade of the former after its weak 1Q13 results. (Wong Teck Ching Andy)

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Ezra Holdings: Time needed for subsea to deliver sustainable earnings

Summary: Ezra Holdings (Ezra) reported a 19% YoY rise in revenue to US$317.1m but saw a 68% drop in net profit to US$7.2m in 3QFY13, such that 9MFY13 revenue and net profit accounted for close to 75% of our full-year estimates. However, stripping out one-off items, we estimate core net loss of US$54m for the quarter. Gross profit margin was only 1% vs. 17% in 3QFY12. The main reason for the poor performance was the subsea segment, which went into the red with delays in project executions and unforeseen costs. As highlighted in our earlier reports, we have been waiting for evidence of smooth execution in this business before we turn more positive on the company. In view of the lack of sustainable core earnings for now, we value Ezra using a P/B of 0.7x, such that our fair value estimate drops from S$1.10 to S$0.99. Maintain HOLD. (Low Pei Han)
CapitaRetail China Trust: Acquiring Grand Canyon Mall in Beijing

Summary: CRCT has announced this morning that it has entered into a conditional call option agreement with CMA to acquire Grand Canyon Mall in Beijing. Including acquisition expenses, the total investment cost for the mall is expected to be about RMB1.82b (S$373.0m), or about RMB26k (S$5,329) psm, based on GFA (excluding the car park). The mall has been valued at RMB1.83b as at 15 April 2013 by CBRE. The mall currently has an annualised net property income (NPI) yield of about 3.5%, based on the purchase price. The committed occupancy rate (92.7% as of April 2013) is expected to reach close to 100.0% next year. Leases accounting for about 27.0% of the mall’s monthly gross rent are expiring between this month and the end of the year. In management’s view, these leases allow for significant improvement in rental income when their average rent, currently over 90.0% lower than the market rate, is adjusted closer to the market rate. Furthermore, leases accounting for another 25.0% of the mall’s monthly gross rent will be expiring in 2014 and 2015. The proposed acquisition of Grand Canyon Mall is thus expected to be yield-accretive once the acquisition is completed. The target NPI yield is about 7.0% to 8.0% in the longer term. CRCT intends to fund the acquisition using its existing cash and new debt of between S$286.9m and S$327.9m, with the balance from new equity financing. The transaction is expected to be completed by 2Q14. Given that CRCT will release its 2Q13 results soon, we maintain our fair value of S$1.58 and BUY rating for now. (Sarah Ong)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.


NEWS HEADLINES

- The Singapore government is clamping down on a common practice where developers and agents tie up with banks. It has introduced a rule that will stop banks from offering preferential interest rates for property loans.

- The MAS is looking at possibly giving more teeth to credit bureaus so that banks can quickly comply with the new TDSR ruling when granting loans.

- Tiong Seng Holdings Limited has formed a S$10m JV with High Tech Concrete Technology Co. Ltd and Sin Mian Development Pte Ltd to set up a precast plant in Myanmar.

- Oxley Holdings has agreed to purchase a 6,625 sqm freehold plot of land in Phnom Penh, Cambodia for about US$11.26m.

- Kingsmen Creatives has secured contracts valued at S$75.4m, including five contracts for Formula 1.
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PostPosted: Tue Jul 16, 2013 9:17 am    Post subject: Reply with quote

Singapore Residential Property: Record launch at J Gateway
A headline total of 2,119 new private homes (incl. 313 EC units) were sold in Jun 13, up 11% MoM and 23% YoY. The highlight of the month was undoubtedly the launch of 738-unit J Gateway near Jurong East MRT station, which saw 737 units snapped up at a median price of S$1,486 psf. Our current base case is for FY13 primary sales (excluding EC) to slow to 16k-18k units sold – an 18% to 27% dip versus 22k units in FY12. With 10k units sold in 1H13, we expect sales to further ease as the market digests the impact of latest curbs. Maintain NEUTRAL on the residential property sector. We prefer developers with strong balance sheets and diversified exposure, such as CapitaLand [BUY, S$3.77] and Keppel Land [BUY, S$4.53]. In the mid-small cap space, we prefer Roxy-Pacific [BUY, S$0.76] which is sitting on a substantially sold development portfolio and has a track record of prudent execution. (Eli Lee)

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Fortune REIT: Solid 2Q13
FRT reported income available for distribution of HK$153.7m (+12.6% YoY), driven by a 10.7% YoY increase in revenue to HK$307.9m and a 11.6% YoY rise in net property income to HK$219.6m. DPU was the same as 1Q13 at 9.00 HK cents (+11.9% YoY). The results were in line with ours and the street's expectations. The portfolio valuation as of 30 June stood at HK$22.2B, up 9.8% from Dec 2012. The increase was mainly driven by improved asset performance, with cap rates of 4.3%-5.1%. The increase in asset valuation pushed the gearing ratio down to 20.9%. FRT is trading at a P/B of 0.71x (NAV of HK$10.01). We maintain our FV of HK$7.51 and BUY rating on FRT. (Sarah Ong)

Keppel Corporation: Secures another Mexican order
Keppel Corporation’s O&M arm has secured a contract to build a jack-up rig worth US$206m from Grupo R, a Mexican drilling company. Scheduled for delivery in 4Q15, the unit will be built to Keppel’s proprietary KFELS B Class design. Grupo R is a repeat customer, having ordered four similar units for US$205m each in Mar this year. With this new contract, Keppel currently has on order nine KFELS B Class jack-up rigs from Mexican customers. We expect more orders as Mexico aims to boost oil production through increased exploration and production activity. Keppel has won contracts worth about S$3.7b YTD, accounting for 73% of our full year estimate. Maintain BUY with S$12.68 fair value estimate. The group is releasing 2Q13 results this Thursday. (Low Pei Han)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.


NEWS HEADLINES

- US stocks climbed modestly on Mon, with the S&P 500 and the Dow industrials rising to record closing highs again, after Citigroup Inc. reported better-than-expected earnings.

- Moody's Investors Service has downgraded the outlook for Singapore's banking system to negative from stable, owing to rapid loan growth and rising real estate prices.

- Retail sales in Singapore rebounded in May, rising 3.2% YoY, as most categories registered growth.

- Keppel REIT posted a distribution per unit of 1.97 S cents for the three months ended June, up 1.5% from the 1.94 S cents posted a year ago.

- Qian Hu Corporation’s net profit for 2Q13 plunged 84.4% to $83,000 due to lower takings in its ornamental fish division as well as by higher raw materials prices.
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PostPosted: Thu Jul 18, 2013 9:50 am    Post subject: Reply with quote

Keppel Land: Steady as she goes
KPLD reported 2Q13 PATMI of S$95.6m which increased 0.9% YoY. 1H13 PATMI now cumulates to S$192.1m, forming 42% of our FY13 forecast which we judge to be within expectations. Looking ahead to 3Q13, the group expects to launch a 726-unit development, The Glades, located beside the Tanah Merah MRT station. KPLD also reported that MBFC T3’s commitment level is ~90% as at end Jun 2013, versus ~79% as at end FY12. Maintain BUY with a lower fair value estimate of S$4.09 (30% RNAV disc.), versus S$4.59 previously, as we update our model and increase our RNAV discount marginally from 25% to 30% to reflect increased residential uncertainty following incremental curbs in Singapore and heightened macro-economic risks in China. (Eli Lee)

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CapitaCommercial Trust: Positive rental reversions in place
CCT reported 2Q13 distributable income of S$59.6m, up 1.9% YoY mainly due to higher revenue contributions across portfolio properties, except Capital Tower, and reduced finance costs which dipped S$3.4m QoQ. Total distributable income in 1H13 cumulates to S$115.3m, up 2.6% YoY, which is within expectations and make up 50.3% of our FY13 forecast. Overall portfolio occupancy remained stable at 95.8% as of end 2Q13, versus 95.3% in the previous quarter. Due to positive rental reversions, CCT’s average committed office portfolio rentals increased QoQ from S$7.83 psf to S$7.96 psf. We estimate a negative impact of S$8.0m - S$8.5m from the absence of yield protection income at OGS in 2H13 but expect this to be offset by positive rental reversions, reduced interest costs and some distribution of retained income (S$10.8m) from Quill Capita Trust. Maintain BUY on CCT. Our fair value estimate, however, falls to S$1.61, versus S$1.80 previously, due to higher discount rates now employed in our valuation model. (Eli Lee)

CapitaRetail China Trust: 2Q13 results in line
CRCT’s 2Q13 results were in line with ours and the street’s expectations. Gross revenue climbed by 4.9% YoY to S$40.0m, net property income rose by 6.0% to S$26.4m and income available for distribution was 7.5% higher at S$17.9m. DPU fell 1.2% YoY to 2.38 S cents, however, excluding the 57m units issued through private placement in Oct 2012, 2Q13 DPU would have been 2.58 cents, up 7.1%. The portfolio valuation rose 4.4% from Dec 2012 to RMB7.9b as at 30 Jun. The REIT manager has elected to apply the Distribution Reinvestment Plan (DRP) established on 21 Mar 2013 to the distribution for 1H13. The plan provides unitholders with the opportunity to receive distributions in the form of fully-paid new units in CRCT, instead of cash. To encourage participation in this first DRP roll-out, CRCT will offer a 4.0% discount to the volume-weighted average trade price per unit of 10 market days up to the Books Closure Date on 12 Au 2013. We maintain our BUY rating but place our fair value of S$1.58 under review. (Sarah Ong)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.


NEWS HEADLINES

- US stocks posted tepid gains on Wed, with the S&P 500 up for a ninth session in ten after Federal Reserve Chairman Ben Bernanke said the rate of bond purchases is flexible.

- Singapore's non-oil domestic exports extended its fall in Jun with a steeper-than-expected 8.8% tumble from a year ago.

- Global fund managers have become cautious about equities, and their emerging market allocations are the lowest in 12 years, according to a Bank of America Merrill Lynch survey.

- Sabana REIT posted a DPU of 2.40 S cents for 2Q13, a 5.7% improvement from 2.27 S cents a year earlier.

- Cosco Corporation’s subsidiary, Cosco (Nantong) Shipyard, secured a US$200m contract to build a harsh-environment semi-submersible accommodation vessel from Mexico-incorporated Cotemar SA de CV.

- Local construction firm Ley Choon Group Holdings has secured new contracts in Brunei worth S$29.6m.
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PostPosted: Fri Jul 19, 2013 9:59 am    Post subject: Reply with quote

Keppel Corporation: Group CEO and O&M CEO to retire in early 2014
Keppel Corporation (KEP) reported a 11.7% YoY decrease in revenue to S$3.08b and a 33.4% drop in net profit to S$346.8m in 2Q13. However, excluding the lumpy profits from the sale of Reflections at Keppel Bay and the one-time gain from sale of investment shares, net profit in 1H13 was in line with last year’s results, within our expectations. Operating margin in the O&M segment continued to hold up. The group CEO as well as the CEO of Keppel O&M will be retiring early next year and successors have been identified. An interim cash dividend and in-specie distribution of Keppel REIT units brings the total interim distribution to S$0.208/share. Maintain BUY with a slightly lower fair value estimate of S$12.53 (prev. S$12.6Cool. (Low Pei Han)

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CapitaRetail China Trust: Improved debt profile in 2Q13
CRCT’s 2Q13 results were in line with ours and the street’s expectations. Net property income rose by 6.0% to S$26.4m and income available for distribution was 7.5% higher at S$17.9m. NPI would have grown 9.5% YoY excluding CapitaMall Minzhongleyuan, which is undergoing AEI. CRCT has refinanced the S$150.5m due in June 2013 and significantly improved the average term to maturity of its debt to 2.52 years as at 30 June from 1.30 years as at 31 March. The fixed rate proportion of CRCT's debt is 78%. Apart from the CapitaMall Anzhen unsecured onshore loan maturing next year, all other loans are offshore, and the average cost of debt for 2Q13 was at 2.58%. Gearing stands at 23.5% and all assets are unencumbered. We maintain our BUY rating and fair value of S$1.58. (Sarah Ong)

CapitaMall Trust: Robust growth in 2Q13
CapitaMall Trust (CMT) released its 2Q13 results this morning. NPI grew by 12.2% YoY to S$125.6m while distributable income to unitholders rose by 10.2% to S$87.7m. The completed asset enhancement works at JCube, Bugis+ and The Atrium@Orchard last year, together with the rental rates achieved from the portfolio’s new and renewed leases, were the key drivers for the quarter. DPU was up 6.3% YoY to 2.53 S cents, and was consistent with our expectations given that 1H13 DPU of 4.99 S cents formed 50.9% of FY13F DPU. As at 30 Jun, CMT’s portfolio occupancy stood at 99.1%, representing an improvement from 1Q occupancy of 98.3%. In addition, positive rental reversion of 6.4% was also slightly higher than last quarter’s reversion of 6.2%. We will be attending CMT’s analyst briefing later in the morning. For now, we maintain BUY on CMT but put our fair value of S$2.43 under review. (Kevin Tan)

Mapletree Logistics Trust: 1QFY14 DPU gained 5.9% YoY
Mapletree Logistics Trust (MLT) reported 1QFY14 gross revenue of S$75.4m and NPI of S$65.3m, down 2% and 3% respectively. The decline was mainly due to a weaker JPY against the SGD. Excluding the forex impact, gross revenue and NPI would have increased by 3% and 2%, respectively. The impact of the depreciating JPY on distributable income was mitigated by currency hedges. During the quarter, MLT also benefitted from lower borrowing costs and a partial distribution of the net gain from the divestment of 30 Woodlands Loop. As a result, amount distributable to unitholders rose 6.9% YoY to S$44.0m while DPU grew 5.9% to 1.80 S cents. Stripping out the divestment gains, DPU would be up 4.7% YoY. The results were in line with expectations, as 1Q DPU have met 24.8% and 25.4% of our and consensus full-year DPU projections. We will be attending the analyst briefing later this morning. In the meanwhile, we keep our HOLDrating but place our S$1.15 fair value under review. (Kevin Tan)
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PostPosted: Mon Jul 22, 2013 9:05 am    Post subject: Reply with quote

KEY IDEA

CapitaMall Trust: Another promising quarter
CapitaMall Trust (CMT) reported DPU of 2.53 S cents, up 6.3% YoY. Together with 1Q DPU of 2.46 S cents, 1H13 DPU totaled 4.99 S cents (+6.6%), forming 50.9% of FY13F DPU. This is above our expectations given that a total of S$12.3m or c.0.36 S cents retained over 1H is available for distribution in 2H13. As at 30 Jun, CMT’s portfolio occupancy stood at 99.1%, up 0.9ppt QoQ, while positive rental reversion of 6.4% achieved in 1H was slightly higher than 1Q’s growth of 6.2%. CMT’s financial position also improved during the quarter, with gearing ratio down to 34.9% from 35.2% in 1Q. On 2 Jul, CMT redeemed all its outstanding convertible bonds due 2013, thereby fully addressing its refinancing needs for 2013. All 14 properties held directly by CMT, we note, are also unencumbered as a result. We now update our model to incorporate the better results and higher risk free rate assumptions. Consequently, our fair value eases from S$2.43 to S$2.35. However, given the strong upside potential, we maintain BUY on CMT. (Kevin Tan)

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Mapletree Logistics Trust: Strength despite uncertain backdrop
Mapletree Logistics Trust (MLT) reported 1QFY14 DPU of 1.80 S cents, up 5.9% YoY. Stripping out divestment gain from 30 Woodlands Loop, DPU would be up 4.7%. The results were in line with expectations, as 1Q DPU have met 24.8%/25.4% of our/consensus full-year DPU projections. Overall occupancy stood at 98.2%, largely stable from 98.5% seen in previous quarter. In addition, positive rental reversion of 17% was achieved. This is higher than prior quarter’s growth of 14%, although MLT maintains its view that the rate is set to moderate going forward. MLT also updated that its redevelopment project at 21 Benoi Sector in Singapore is on track for completion in 3QFY14, and that the property is currently 94% pre-leased. In the coming quarter, The Box Centre in Korea (acquired in Jul at NPI yield of 8.4%) will start contributing to MLT’s topline. We are keeping our forecasts intact for now as the results were within expectations. Maintain HOLD with an unchanged fair value of S$1.15 on MLT. (Kevin Tan)

Suntec REIT: Recovery possibly in sight
Suntec REIT’s 2Q13 DPU was up 0.9% QoQ (-4.7% YoY) to 2.249 S cents, helped by a S$7.8m capital distribution from Chijmes sale proceeds. For 1H13, DPU amounted to 4.477 S cents, down 7.0% YoY and 4.3% HoH, and formed 48.1% of our full-year DPU forecasts. This is broadly in line with our expectations, as Suntec REIT’s financial performance is likely to improve going forward now that the Phase 1 space has become operational in Jun. For the first time, Suntec REIT shared that SCM Phase 1 has achieved a passing rent of S$13.09 psf pm. This, we note, is higher than the rates of S$11.31 secured at the rest of SCM and S$12.59 projected for the AEI project. Committed occupancy at SCM Phase 1 now stands at 99.6%, while pre-commitment at Phase 2 has risen from 53.0% in 1Q to 70.1%. We tweak our model to incorporate the results and higher market risk free rates. While our fair value drops to S$1.85 from S$2.16, we view that current valuations are compelling. Maintain BUY on Suntec REIT. (Kevin Tan)

Raffles Medical Group: 2Q13 results in-line with expectations
Raffles Medical Group (RMG) reported its 2Q13 results this morning which were within our expectations. Revenue rose 12.9% YoY and 7.1% QoQ to S$86.8m. PATMI was up 15.9% YoY and 6.8% QoQ to S$14.4m. Growth during the quarter was driven by higher patient acuity and an increased depth and breadth of medical services on offer. Both RMG’s core divisions contributed to its topline increase, with its Hospital Services and Healthcare Services segments growing 16.8% and 6.5% YoY, respectively. For 1H13, revenue increased 12.1% YoY to S$167.9m, forming 48.3% of our full-year estimates; while PATMI jumped 16.0% to S$27.9m, or 45.9% of our FY13 forecast. This is unsurprising, as 2H is seasonally a much stronger half for RMG, and we expect this trend to be maintained this year. An interim dividend of 1 S cent/share was declared (payable on 29 Aug 2013), similar to 2Q12 and our forecast. We will provide more details after the analyst briefing. We maintain our BUY rating and S$3.42 fair value estimate (29x blended FY13/14F). (Wong Teck Ching Andy)
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