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OCBC Reports Sept 2013
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PostPosted: Mon Sep 02, 2013 8:55 am    Post subject: OCBC Reports Sept 2013 Reply with quote

Raffles Medical Group: Operations to remain resilient
Raffles Medical Group’s (RMG) share price has fallen ~5%
since the start of Jul, and we believe this may have been
caused by concerns over the impact of the weakening IDR
on RMG’s Indonesian patient visits, coupled with the broad
market weakness. RMG updated us that it has not felt any
significant effects of this on its medical tourism figures. We
believe this is because a larger proportion of its foreign
patients come to RMG for the treatment of more acute
illnesses rather than elective procedures. Meanwhile, RMG
would recognise a net gain of ~S$21.4m from the disposal
of Raffles Medical Management (which owns the Thong Sia
commercial podium) for S$120m, and this would bolster its
cash balances. Maintain BUY and S$3.42 fair value
estimate on RMG.
More reports:
- Olam Int’l: HOLD with lower S$1.45 fair value
News Headlines
• US stocks declined on Fri, with the Dow and S&P 500
recording their worst month since May 2012, as Wall
Street considered a possible US strike against Syria.
• The total market capitalisation of Singapore-listed
companies suffered its steepest drop of 4.8% in over a
year as tension in Syria and anticipation of US central
bank tightening dampened sentiments in Aug.
• The Singapore banking sector's loans-to-deposits ratio
crossed 100 for the first time since the Asian financial
crisis, providing evidence that MAS recent moves to curb
excessive lending were timely.
• The Singapore government has raised development
charge rates for industrial use by around 15% on
average, while leaving the rates for commercial use
completely untouched.
• Changi Airport's mega Terminal 5 will be able to handle
50m passengers per year when it opens in the mid-
2020s. This is 75% of the capacity of the existing three
terminals.
• S i2i posted a net loss of US$11.4m for 4QFY13,
compared with a net loss of US$115.7m a year ago.
Key Singapore Indices
Close Chg % Chg
STI 3028.9 -9.1 -0.3
Catalist 179.6 -0.3 -0.2
Finance 780.8 -2.0 -0.3
Property 703.9 4.0 0.6
Electronics 691.4 -7.0 -1.0
Vol(m) 3007.9 -1170 -28.0
Val(S$m) 1736.9 415.2 31.4
World Indices
Close Chg % Chg
Dow Jones 14810.3 -30.6 -0.2
Nasdaq 3589.9 -30.4 -0.8
S&P500 1633.0 -5.2 -0.3
FTSE 6412.9 -70.1 -1.1
KLCI 1727.6 23.8 1.4
Hang Seng 21731.4 26.6 0.1
Nikkei 13388.9 -70.9 -0.5
SET 1294.3 1.8 0.1
KOSPI 1926.4 18.8 1.0
TWSE 8021.9 104.2 1.3
Market Statistics (SG)
STI 52-week range 2,932 3,465
No. of gainers 217
No. of losers 279
No. of unchanged 172
Economic Statistics
S$/US$ 1.3 0.0
Yen/US$ 98.4 0.2
3-mth S$ SIBOR 0.4 0.0
3-mth US$ SIBOR 0.3 0.0
Crude futures (US$) 105.6 -2.0
Research Team
(65) 6531 9800
e-mail: info@ocbc-research.com
OCBC Investment Research
Market Pulse
2 Sept 2013
2
Raffles Medical Group: Operations to
remain resilient
● Good entry point
● No significant impact from
weakening IDR
● Net gain of ~S$21.4m from
property sale
Concerns over weakening IDR overdone
Raffles Medical Group’s (RMG) share price
has fallen ~5% since the start of Jul, and we
believe this may have been caused by
concerns over the impact of the weakening
IDR on RMG’s Indonesian patient visits,
coupled with the broad market weakness.
RMG updated us that it has not felt any
significant effects of this on its medical
tourism figures. We believe this is because a
large proportion of its foreign patients come
to RMG for the treatment of more acute
illnesses. Demand for these cases tends to be
more price inelastic in nature. However,
there could still be some negative impact on
elective surgeries done, in our view, as
patients may choose to delay such
procedures. A mitigating factor could be
RMG’s competitive pricing vis-à-vis its local
peers, which may allow it to capture some
market share from its competitors for foreign
patients who decide to proceed with their
treatment but prefer a cheaper alternative in
Singapore without compromising on quality.
Sale of property to bolster cash pile
Raffles Medical Group (RMG) recently entered
into a sale and purchase agreement for the
disposal of Raffles Medical Management
(which owns the Thong Sia commercial
podium) for S$120m. This represents a
30.3% and 22.4% premium over its
purchase price (acquired in Apr 2011) and
latest valuation (as at 31 Dec 2012).
Proceeds would be used for RMG’s expansion
plans as it is negotiating on a collaboration
for a possible integrated international
hospital development in Shenzhen, China,
which requires ~S$150m of capex (spread
over three years). We also do not rule out
the possibility of RMG paying a special
dividend or increasing its ordinary final
dividend payout as a means of rewarding its
shareholders.
Reiterate our BUY rating
RMG would recognise a net gain of
~S$21.4m upon the completion of sale of
this asset (expected on 31 Oct 2013), which
would boost its earnings for FY13. However,
this does not affect our valuations on the
group as we view the gain as a non-recurring
item. We maintain our BUY rating and
S$3.42 fair value estimate on RMG. (Wong
Teck Ching Andy)
. . . . .
Olam Int’l: HOLD with lower S$1.45 fair
value
● Core earnings 3% above forecast
● Gearing back at 2.0x
● Margin compression still a risk
FY13 results just in line
Olam International Limited (Olam) posted
FY14 revenue of S$20.8b, up 22%, and was
around 5% ahead of our forecast, as it
continued to enjoy strong volume growth
(+49.5%). However, reported net profit
slipped 2% to S$362.6m, hit by higher
taxation. Besides higher taxation (in line with
our forecast), we also note that margins have
fallen across some business segments, core
earnings came in much lower at S$314.3m,
but still up 13%, and was about 3% ahead of
our estimate. Olam declared a final dividend
of S$0.04/share, unchanged from last year.
Profitability/ton appears to be lower
Business-wise, the Food Staples and
Packaged Foods segment contributed 36% of
total 4QFY13 revenue, as revenue jumped
53% YoY, volume +29%; but we note that
profitability has slipped, with GC/ton down
17% and NC/ton down 12%. Confectionery &
Beverage Ingredients was next with 24%
contribution in 4Q, where revenue climbed
22% YoY, volume +23%; but again we note
lower profitability, with GC/ton falling 41%
and NC/ton down 42%. Industrial Raw
Materials contributed 22% of 4Q13 revenue,
but sales slipped 4% YoY, even as volume
+30%; GC/ton was flat, but NC/ton rose
19%.
OCBC Investment Research
Market Pulse
2 Sept 2013
3
Net gearing back at 2.0x
Meanwhile, net gearing has eased somewhat
from 2.2x as of end Mar to around 2.0x as of
end Jun, and is back to the same level as last
Jun. Olam believes that it has made progress
on its strategic plan priorities and pathways
identified include taking a rebalanced
approach to growth and cash-flow generation
(aims to be FCF positive by FY14).
Lower S$1.45 fair value
In view of the eroding profitability, we pare
our FY14F core net profit figure by 16% (but
still expect to see decent earnings growth in
FY15). This also drops our fair value from
S$1.73 to S$1.45, still based on 10x FY14F
EPS. Maintain HOLD. (Carey Wong)
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PostPosted: Tue Sep 03, 2013 8:58 am    Post subject: Reply with quote

CDL Hospitality Trusts: Industry remained
challenging in July
Based on STB figures, we estimate that RevPAR for
Singapore hotels fell 8% YoY for July. 3Q13 for the sector
as a whole could well show a contraction like in 1H13. This
is disappointing as we were anticipating a possible YoY
growth in RevPAR figures for July and August, based on
industry sources. CDLHT’s hotels in Singapore are best
classified as being in the Mid-tier/Upscale categories. It is
worth highlighting that we anticipate a huge growth of
10.9% p.a. in mid-tier room supply, which means that
CDLHT’s Singapore hotels could face significant RevPAR
pressure over the medium-term. Previously using an RNAV
model, we have transitioned to a DDM model. Incorporating
a risk-free rate of 2.7% (versus 2.5% previously) into our
model, our FV drops to S$1.56 from S$1.73. We maintain a
HOLD rating on CDLHT.
More reports:
- Geo Energy Group – New kid on the mining block
- Olam Int’l: New Muddy Water report
News Headlines
• The White House’s push for congressional approval of
limited military strikes against Syria and the Aug jobs
report will dominate when investors return Tue from the
holiday weekend.
• Thai Beverage Public Co has appointed Maybank Kim Eng
as a financial adviser, as the beer brewer seeks to
integrate recently acquired Fraser and Neave.
• CNA Group's unit has landed a S$10.6m contract to
renovate, upgrade and expand the domestic terminals in
Ho Chi Minh's Tan Son Nhat International Airport.
• Rawa Investments, a wholly owned subsidiary of
Malaysia's sovereign wealth fund Khazanah Nasional, is
exercising a put option to sell a 10% stake in OUC back
to Raffles Education Corporation.
Key Singapore Indices
Close Chg % Chg
STI 3055.7 26.8 0.9
Catalist 179.6 unch unch
Finance 789.9 9.0 1.2
Property 707.9 4.0 0.6
Electronics 689.2 -2.2 -0.3
Vol(m) 4107.2 1099.3 36.5
Val(S$m) 1260.6 -476.3 -27.4
World Indices
Close Chg % Chg
Dow Jones 14810.3 -30.6 -0.2
Nasdaq 3589.9 -30.4 -0.8
S&P500 1633.0 -5.2 -0.3
FTSE 6506.2 93.3 1.5
KLCI 1717.6 -10.0 -0.6
Hang Seng 22175.3 444.0 2.0
Nikkei 13573.0 184.1 1.4
SET 1323.7 29.4 2.3
KOSPI 1924.8 -1.6 -0.1
TWSE 8038.9 17.0 0.2
Market Statistics (SG)
STI 52-week range 2,932 3,465
No. of gainers 347
No. of losers 199
No. of unchanged 144
Economic Statistics
S$/US$ 1.3 0.0
Yen/US$ 99.5 0.2
3-mth S$ SIBOR 0.4 0.0
3-mth US$ SIBOR 0.3 0.0
Crude futures (US$) 106.8 -0.8
Research Team
(65) 6531 9800
e-mail: info@ocbc-research.com
OCBC Investment Research
Market Pulse
3 Sept 2013
2
CDL Hospitality Trusts: Industry
remained challenging in July
● Huge supply growth for mid-tier
hotels
● QE tapering fears still affecting
yield plays
● Maintain HOLD
Had been hoping for a better July
In our 19 Aug Hospitality report we stated
that industry contacts indicated that July and
August may have been showing RevPAR
growth on a YoY basis for the industry as
whole. However, disappointing data for the
sector in July has just been published on
September 1. Based on STB figures, we
estimate that RevPAR fell 8% YoY for July.
We think certain players are continuing to
perform significantly better than their peers
within each category, and 3Q13 for the
sector as a whole could well show a
contraction like in 1H13.
Challenging environment continues
We believe that hotel room supply will
expand at 6.5% p.a. over 2013-2015 while
hotel room demand will grow at only 5.8%
p.a. Apart from the usual uplift in evennumbered
years like 2014 from more MICE
events, this supply-demand imbalance will
put pressure on real RevPAR growth.
CDLHT’s hotels in Singapore are best
classified as being in the Mid-tier/Upscale
categories. It is worth highlighting that we
anticipate a huge growth of 10.9% p.a. in
mid-tier room supply, which means that
CDLHT’s Singapore hotels could face
significant RevPAR pressure over the
medium-term. Recall that the 2Q13 RevPAR
for CDLHT’s Singapore hotels fell 8.5% YoY
to S$193. They were affected by increased
competition, weaker corporate demand and
the absence of a biennial event in April.
Yield plays hit by inevitable QE tapering
Concern over the timing of QE tapering by
the US Federal Reserve and its impact on
interest rate and bond yields continues to
weigh on the performance of the Asian
markets and yield plays like CDLHT since
May.
Cut FV to S$1.56
Previously using an RNAV model, we have
transitioned to a DDM model. Incorporating a
risk-free rate of 2.7% (versus 2.5%
previously) into our model, our FV drops to
S$1.56 from S$1.73. We maintain a HOLD
rating on CDLHT. (Sarah Ong)
. . . . .
Geo Energy Group: New kid on the
mining block
● Now a mine owner
● Adding five more concessions
● 15x PER vs. peers’ 36x
Geo Energy Group
Geo Energy Group (GEG) is a coal mining
specialist in Indonesia, which started as a
mining contractor, and has since moved on
to become a mine owner. It currently owns
the BEK Mining Concession (which we visited
recently) and has entered into five other
mining concessions.
Visit to BEK site
Located on a 4570ha site in Kutai Barat
Regency, East Kalimantan, BEK has a 6-year
mine life based on 12.5m tonnes of reserves
(also has 30.7m tonnes of resources and a
20-year concession from Apr 2011). We
understand that GEG has produced some
1.84m tonnes of coal from this site as of 30
Jun; and the company believes it is on track
to achieve its 2m-tonne target by year end.
While the caloric value is just above 3400
GAR, we understand that prices have been
holding up pretty well (~US$31-34/ton)
despite the slide in Newcastle coal prices;
this as end customers switch down to
cheaper inputs in wake of the still-sluggish
economies in China and India.
Also went to BJPE site
We also visited a 739.9ha site where GEG
provides mining services to the owner of the
concession, BJPE. In addition, GEG has
exclusive marketing rights over the semicoking
and high-thermal coal produced there.
According to management, GEG will continue
to secure new mining services contracts like
this. And it believes that it has an edge over
its competitors as GEG owns its own
equipment, thus giving the company greater
flexibility and cost control.
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PostPosted: Wed Sep 04, 2013 9:08 am    Post subject: Reply with quote

HPH Trust: Safe harbour
Hutchison Port Holdings Trust (HPH Trust) is the biggest container port operator in China’s Pearl River Delta region by throughput, with market shares of around 70% at Hong Kong’s main Kwai Tsing Port and 47% in Shenzhen. We believe that its market dominance in the Pearl River Delta puts the trust in a strong position to capture the region’s trade flows of manufacturing exports and raw material imports, including intra-Asia cargo. At the current price of US$0.725, we believe that the trust offers upside potential, including distributions, of more than 10% over the next 12 months as the recovery in the US and Europe gathers momentum. The main risk to our investment thesis in the short term is a renewed slowdown in these major economies. Still, we expect strong support for HPH Trust at its current price, given its attractive distribution yield of around 7%. Initiate with a BUY rating and target price of US$0.76. (Conrad Tan)

MORE REPORTS

Singapore Press Holdings: Continued headwinds for print
We see SPH’s REIT spin-off as a positive move and believe management’s decision to hold a 70% majority stake makes significant sense. However, the latest 3QFY13 figures presented a picture of contined headwinds for the group’s core print business given the cumulative impact from cooling measures on property and automobile ads. 3QFY13 ad revenues fell 4.5% YoY in 3QFY13 and circulation revenues also dipped 3.2% YoY. With current headwinds for the print business and limited visibility in terms of catalysts ahead, we believe the risk-reward proposition for the counter has turned fairly neutral. Downgrade to HOLD with a lowered fair value estimate of S$4.14, versus S$4.94 (before the REIT spin-off) previously. Our barometer for an upturn in outlook ahead consists of two key groups of operating metrics: for its print businesses - ad and circulation revenue growth; and for its retail property segment – expedient and accretive capital deployment. (Eli Lee)

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


NEWS HEADLINES

- US stocks rose modestly on Tue after upbeat data on global manufacturing and as the White House lobbied Congress for a US military response to Syria’s use of chemical weapons.

- Cordlife has proposed to acquire 19.9% interest in Malaysia listed cord blood banking service provider Stemlife Berhad.

- Liongold has signed a memorandum of understanding with a subsidiary of Chinese state-owned China National Materials Group Corporation, which it says will enable it to fast-track its production of gold.

- Interra Resources is acquiring an Indonesian company for US$78.5m in a move that would increase its reserves by 80%.

- Sinwa Limited has divested some of its chartering and engineering business to help turn it around from a loss-making year. It will now focus on its core marine supply and logistics business and expand into new markets.

- GLP J-Reit is poised to acquire nine properties from GLP Japan Income Partners I and Global Logistic Properties (GLP).
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PostPosted: Thu Sep 05, 2013 9:40 am    Post subject: Reply with quote

Sembcorp Industries: Growing wastewater business in China

Summary: Sembcorp Industries (SCI) announced last week that it will expand its water business in China’s Liaoning Province with two new wastewater treatment projects in industrial parks in Panjin City. We see the initial phases of these projects as incremental expansions in China, adding about 10% to the group’s total industrial water capacity in the country. The group’s utilities business in China has seen good growth over the years, with net profit increasing from S$6m in 2009 to a forecasted S$50m this year. With the expertise to provide utilities like energy, water and wastewater treatment which will be in demand due to China’s growth, we are optimistic on the long-term prospects of China as a key market for the group. Moreover, SCI has expertise on sustainable living with a focus on environmental protection, which should be in demand in China due to the country’s environmental problems. Maintain BUY with S$6.48 fair value estimate. (Low Pei Han)

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


NEWS HEADLINES

- US stocks gained Wed for a second straight day as Ford Motor Co. posted its best retail-sales month in seven years, while investors kept one eye trained on the debate over prospective US intervention in the Syrian civil war.

- Indofood Sukses Makmur has succeeded in its takeover of China Minzhong, even before its mandatory offer for the remaining shares not already owned opens for acceptance.

- Hiap Hoe has made its second overseas acquisition in as many months with the purchase of a A$43.8m (S$51.2m) commercial building in Melbourne's central business district.

- Synear Food Holdings has received shareholders' approval to delist from SGX, clearing two of three hurdles for an exit offer to turn unconditional.

- Tat Hong Holdings announced it would be divesting its flagship Gul Crescent site as part of its efforts to optimise operations in Singapore, and has secured a 16,100sqm plot of industrial land in Tuas for a new site.
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PostPosted: Fri Sep 06, 2013 9:18 am    Post subject: Reply with quote

Wilmar: Upgrade to BUY – decent entry level
Wilmar International Limited’s (WIL) share price has taken
a bit of a hit after it reported slightly below par 1H13
results on 7 Aug (core earnings met about 40% of our
previous full-year forecast), falling 4.5% to a recent low of
S$3.0x. But as mentioned in our 12 Aug report, we would
be buyers at S$3.10 or better, as we believe that most of
the risks would have been captured in the price. Keeping
our fair value at S$3.33 (still based on 12.5x blended
FY13/FY14F EPS), we note that there is now a decent 10%
upside from here. Hence we are upgrading our call from
Hold to BUY. Note that an appreciating USD against SGD
would also have a modest boost to our fair value
News Headlines
• US stocks climbed for a third consecutive session on Thu,
with the Dow posting its longest winning run since mid of
Jul, as investors looked to the government’s monthly job
report.
• Moody’s Investors Service has downgraded the
subordinated debt ratings of 3 Singapore banks in a
region wide exercise to reflect the increasing global trend
of bail-in risks.
• The consortium comprising Nobel Design, Lian Huat
Group and 2E Capital, which bought the freehold Hotel
Windsor in the MacPherson area last year, is converting
the hotel's office-retail podium into a strata retail
development for sale.
• SingTel’s wholly owned unit, Amobee, has conditionally
agreed to pay US$15m for Gradient X, a firm with net
tangible liabilities of about US$1.1m as at end-May.
• Asia-Pacific Strategic Investments is trying again to turn
its business around after announcing plans for a reverse
takeover deal to become a mining play.
• Hiap Hoe Limited expanded its overseas portfolio with a
A$105m (S$122.2m) acquisition of a mixed use retail
and office asset in the Central Business District of
Melbourne, Australia.
• Rex International has announced their 2QFY13 result,
with a reported net loss of US$685k, as compared to net
loss of US$287k in 2QFY12.
Key Singapore Indices
Close Chg % Chg
STI 3039.5 24.0 0.8
Catalist 182.1 unch unch
Finance 783.8 1.6 0.2
Property 702.1 -2.0 -0.3
Electronics 687.6 0.8 0.1
Vol(m) 3876.1 253.4 7.0
Val(S$m) 1176.5 -157.3 -11.8
World Indices
Close Chg % Chg
Dow Jones 14937.5 6.6 0.0
Nasdaq 3658.8 9.7 0.3
S&P500 1655.1 2.0 0.1
FTSE 6532.4 57.7 0.9
KLCI 1721.0 4.2 0.2
Hang Seng 22598.0 271.8 1.2
Nikkei 14064.8 11.0 0.1
SET 1313.5 10.3 0.8
KOSPI 1951.7 18.6 1.0
TWSE 8169.1 85.7 1.1
Market Statistics (SG)
STI 52-week range 2,932 3,465
No. of gainers 337
No. of losers 195
No. of unchanged 153
Economic Statistics
S$/US$ 1.3 0.0
Yen/US$ 100.1 0.0
3-mth S$ SIBOR 0.4 0.0
3-mth US$ SIBOR 0.3 0.0
Crude futures (US$) 108.5 0.1
Research Team
(65) 6531 9800
e-mail: info@ocbc-research.com
OCBC Investment Research
Market Pulse
6 Sept 2013
2
Wilmar: Upgrade to BUY – decent entry
level
● Enter at S$3.10 or better
● Upgrade to BUY
● Expect better 2H showing
Fallen to a decent entry level
Wilmar International Limited’s (WIL) share
price has taken a bit of a hit after it reported
slightly below par 1H13 results on 7 Aug
(core earnings met about 40% of our
previous full-year forecast), falling 4.5% to a
recent low of S$3.02. But as mentioned in
our 12 Aug report, we would be buyers at
S$3.10 or better, as we believe that most of
the risks would have been captured in the
price.
Upgrading to BUY
Keeping our fair value at S$3.33 (still based
on 12.5x blended FY13/FY14F EPS), we note
that there is now a decent 10% upside from
here. Hence we are upgrading our call from
Hold to BUY. Note that an appreciating USD
against SGD would also have a modest boost
to our fair value.
Should also expect a better 2H
performance
In addition, WIL tends to perform better in
the second half. One reason is the
seasonality of its sugar business in Australia.
That outfit will typically reverse from a lossmaking
position to a highly profitable one.
And with the sugar prices (see Exhibit 2)
already on the rebound, we believe that
2H13 would be no exception (although there
may still be lingering concerns1 over a
mystery cane disease – Yellow Canopy
Syndrome – that causes canes to turn
yellow).
Limited impact from slowing China
growth
Meanwhile, China – WIL’s largest market –
appears to be opting for slower growth this
year to allow the government to solve
fundamental problems hindering long-run
development, according to President Xi
Jinping1. However, we note that market still
expects China to expand by 7.5% this year,
which should not pose any issues for WIL’s
consumer pack business. Management had
previously said that retail packs are fairly
resilient and may even benefit from more
people choosing to cook at home rather than
dining out. (Carey Wong)
. . . . .
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PostPosted: Mon Sep 09, 2013 9:42 am    Post subject: Reply with quote

Singapore REITS: Downgrading to neutral

Summary: We now see fairly solid grounds for a base case that the Fed would taper in Sep 2013 or soon after, and we downgrade the S-REIT sector to NEUTRAL on three key reasons. First, we believe this is the beginning of a long term secular, not cyclical, trend of rising interest rates. Higher discount rates and liquidity factors, due to capital re-allocation across asset classes, would likely negatively impact REIT prices over the mid to long term. Second, we believe a limited fundamental growth outlook for the sector is unlikely to trump the negative impact of rising rates on S-REIT prices. Finally, a key proxy for cheapness – the sector’s yield spread against the SG 10Y bond – implies that the sector appears fairly priced now. Our most preferred sub-sectors are domestic retail and office where rental outlooks and valuations still appear fairly appealing. Our top picks are CapitaCommercial Trust [BUY, FV: S$1.61], Starhill Global REIT [BUY, FV: S$0.95] and Suntec REIT [BUY, FV: S$1.80]. (REITs Team)

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


NEWS HEADLINES

- US stocks finished little changed on Fri, but with the Dow halting a four-week losing streak, as Wall Street’s attention shifted from developments related to Syria to the impact of the jobs report on US monetary policy.

- Oil and gas exploration and production firm Ramba Energy has received an offer from Jakarta-listed Sugih Energy for a 51% stake in the firm.

- Sunpower Group has won an RMB85.1m (S$17.8m) contract from Shenhua Group, a coal conglomerate in China.

- The takeover of China Minzhong by food giant PT Indofood Sukses Makmur is as good as a done deal after Indofood doubled its stake in the China vegetable processor from 29% to 58% in just three days of trading.

- Based on the filings on the Singapore Exchange in the first week of Sep, buying among directors fell for the second straight week while selling remained flat.

- New mainboard listing rules for mineral, oil and gas companies are expected to add impetus to their already-growing cluster on the SGX.

- Otto Marine is unfazed by the competition from China's more cost-efficient yards in the building of offshore support vessels.
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PostPosted: Tue Sep 10, 2013 8:57 am    Post subject: Reply with quote

CapitaMalls Asia: Stabilizing fundamentals in China
Latest Chinese economic data-points has mostly been above view, painting a picture of modestly recovering fundamentals. Over the last month, the Chinese PMI, trade and inflation figures have mostly beat expectations which increasingly establishes a base case for at least a 7.5% economic growth rate this year – the target set by Chinese authorities. We look forward to Chinese industrial production and retail sales reports today, which are expected to further add to signs of recovery. We believe these are key positives for CMA and reinforces the long-term outlook of its Chinese mall portfolio, which has continued to put up firm numbers year to date. 1H13 tenants sales at CMA’s Chinese malls grew at 9.5% YoY on a psf basis; excluding tier 1 cities, tenant sales grew by 11.0% YoY. Long term tailwinds from the secular growth in Chinese retail consumption remain intact, in our view. Maintain BUY with an unchanged fair value estimate of S$2.55. (Eli Lee)

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


NEWS HEADLINES

- US stocks climbed on Mon, with the S&P 500 extending its longest win streak since Jul, after Chinese exports beat projections and as investors anticipated the unveiling of Apple’s new iPhone models.

- Tiger Airways Holdings has upped its shareholding in the capital of Indonesia's PT Mandala Airlines from 33% to 35.8%.

- Amara Holdings may sell hospitality assets as a real estate investment trust.

- Neo Group yesterday posted a net profit of S$2.77m for the six months ended 31 Jul 2013, almost four times the net profit of S$703,000 a year ago.

- XMH Holdings share price rose 2 cents, or 4.9%, to 43 cents yesterday after the diesel engine provider announced an acquisition over the weekend.

- A-Sonic Aerospace’s stock took off on high volumes yesterday, following the logistics and aerospace company's revelation last week that it has started up an aircraft-leasing division.

- Synear Food Holdings' independent shareholders have adhered to the recommendation of an independent financial adviser that shareholders approve a delisting plan.
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PostPosted: Wed Sep 11, 2013 8:58 am    Post subject: Reply with quote

UOB: Tapping on opportunities in Thailand
UOB’s core Thailand management team is generally positive on its business and growth in Thailand, supported by rising regional trades, higher transactional banking activities and higher affluence. Profit before tax grew from THB1845m in 2010 to THB2927m in 2012 or a CAGR of 26% (FY10-12). Despite this growth, its NPL ratio edged lower from 4.98% in 2010 to 2.12% in 2012. In terms of its loans breakdown, Personal Financial Services (PFS) accounted for the bulk at 45% as of Jun 2013. Some of the key areas of business emphasis include PFS (growing its market share for deposits, credit cards, personal loans, housing loans, etc), Corporates and SMEs. We are maintaining our fair value estimates of S$22.97, but as the share price has recently corrected to S$20.36m, we are upgrading to a BUY. (Carmen Lee)

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Midas Holdings: Keeping the faith
The recent public tender for 91 high-speed train sets by China Railway Corporation (CRC) was awarded to CSR Qingdao Sifang, which we believe is a disappointment for Midas Holdings since Midas is not its major supplier. However, we believe that Midas will still be able to secure high-speed contracts in 4Q13, as our channel checks reveal that CRC will also be awarding contracts for 51 high-speed train sets to China CNR via a competitive negotiation. Midas is a key supplier of aluminium alloy extrusion profiles for high-speed trains to China CNR. We estimate potential addressable market size of CNY153m for Midas for this round of procurement. We understand that there may also be another round of procurement by CRC by year end, while 2014 will likely see the bulk of high-speed train car purchases by CRC under China’s 12th Five-Year Plan (2011-2015). Maintain BUY and S$0.65 fair estimate on Midas. (Wong Teck Ching Andy)

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


NEWS HEADLINES

- US stocks rallied on Tue, with the S&P 500 continuing its longest stretch of gains since mid-Jul, after upbeat data from China and amid heightened diplomacy on Syria.

- Singapore’s local banks have been named Asia's top three safest banks for the third year running, even after Moody's lowered its outlook for the banks to "negative" for the next one to two years.

- Asia is not on the verge of financial crisis, despite the recent turmoil in regional equity and currency markets, said Prime Minister Lee Hsien Loong.

- Sound Global’s controlling shareholders is seeking the delisting of the company from the Singapore Exchange with an exit offer of 70 S cents per share.

- United Envirotech yesterday announced that it has signed a S$59m contract to acquire, upgrade and expand a wastewater treatment plant in China.

- While mindful of Japan's deep pockets, CapitaMalls Asia is not looking to spin off its assets in that country at the moment.
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PostPosted: Thu Sep 12, 2013 9:28 am    Post subject: Reply with quote

Astro: Maintain BUY with lower MYR3.21 FV
Astro Malaysia Holdings Berhad (Astro) saw 1H14 revenue
+13% at MYR2314.1m, meeting 24.5% of our full-year
forecast, while net profit eased 2% to MYR213.0m, or
21.4% of our FY14 forecast. Astro has declared another 2.0
sen interim dividend (30 Sep entitlement date/18 Oct
payment date), bringing its payout so far to 4.0 sen. While
1H14 results were tracking slightly below our forecast, we
opt to leave our estimates unchanged as we still expect
Astro to gain traction in both customer and ARPU growth.
We are also keeping our free cash-flow assumptions for
now. However, our DCF-based fair value dips slightly from
MYR3.26 to MYR3.21 due to a higher risk-free rate
assumption. But given that there is still a total return of
11%, we maintain BUY on the stock.
More reports:
- Keppel Land: Sells stake in Indonesian hotel
News Headlines
• US stocks tilted mostly higher on Wed, with the Dow
industrials tallying a third day of triple-digit gains, as
reduced worry about Syria countered Apple’s sharp drop.
• Xyec Holdings priced the first-ever Japanese IPO on
Catalist at 26 S cents per share in a S$6.5m fully placed
stock sale. The firm will close its offer of 25m new
placement on 16 Sep and list on 18 Sep.
• SingTel and Optus Business announced they have signed
a A$530m agreement with ANZ to provide
telecommunication and managed services for a further
five years.
• Impairment loss of S$3.1m saw the fiscal first-quarter
net profit of Popular Holdings fall 18.8% year on year to
S$5.32m from S$6.56m.
• Halcyon Agri has signed a term sheet to acquire PT
Golden Energi, an Indonesian rubber producer, for
US$7m.
• Thailand's largest energy firm, PTT Pcl, plans to sell its
palm oil business in Indonesia worth an estimated
US$300-400m as part of moves to divest non-core
businesses.
Key Singapore Indices
Close Chg % Chg
STI 3108.2 -15.7 -0.5
Catalist 190.7 2.9 1.6
Finance 794.2 -1.9 -0.2
Property 710.5 -0.3 0.0
Electronics 692.6 1.4 0.2
Vol(m) 3710.6 -1540 -29.3
Val(S$m) 1337.8 -146.5 -9.9
World Indices
Close Chg % Chg
Dow Jones 15326.6 135.5 0.9
Nasdaq 3725.0 -4.0 -0.1
S&P500 1689.1 5.1 0.3
FTSE 6588.4 4.4 0.1
KLCI 1768.5 3.5 0.2
Hang Seng 22937.1 -39.5 -0.2
Nikkei 14425.1 1.7 0.0
SET 1411.2 18.0 1.3
KOSPI 2003.9 9.8 0.5
TWSE 8209.0 0.2 0.0
Market Statistics (SG)
STI 52-week range 2,932 3,465
No. of gainers 360
No. of losers 233
No. of unchanged 178
Economic Statistics
S$/US$ 1.3 0.0
Yen/US$ 99.9 0.0
3-mth S$ SIBOR 0.4 0.0
3-mth US$ SIBOR 0.3 0.0
Crude futures (US$) 107.7 0.1
Research Team
(65) 6531 9800
e-mail: info@ocbc-research.com
OCBC Investment Research
Market Pulse
12 Sept 2013
2
Astro: Maintain BUY with lower MYR3.21
FV
● 1H slightly before forecast
● Still highly cash generative
● BUY with lower MYR3.21 FV
1H tracking slightly below forecast
Astro Malaysia Holdings Berhad (Astro)
reported 2QFY14 revenue of MYR1188.3m,
+11% YoY, as the Pay TV subscription
revenue climbed 10% YoY to MYR991.2m,
while TV Ad revenue improved 7% YoY to
MYR87.0m. But net profit grew at a slower
5% YoY to MYR98.9m, as EBITDA margin
eased from 34.7% in 2Q13 to 33.8% in
2Q14. Management noted that the recent
central bank measures to combat higher
inflation had affected the disposable income
of viewers slightly. For 1H14, revenue
gained 13% to MYR2314.1m, meeting 24.5%
of our full-year forecast, while net profit
eased 2% to MYR213.0m, or 21.4% of our
FY14 forecast. Astro has declared another
2.0 sen interim dividend (30 Sep entitlement
date/18 Oct payment date), bringing its
payout so far to 4.0 sen.
Capex cycle to peak in FY15
As before, management remains relatively
upbeat about its prospects, as customer and
ARPU growth continue, with increased
momentum on Astro B.yond STB swap
(replacing the older legacy boxes). With
current ARPU hovering around MYR95
(+3.4% YoY), we think it should be on track
to achieve its MYR130 ARPU target by FY18.
As before, management expects operating
expenses to peak in FY14. Furthermore,
Astro expects its capex to peak in FY15,
further strengthening its highly cashgenerative
case (which implies room for
better-than-expected dividend payout in our
view).
Maintain BUY with lower MYR3.21 FV
While 1H14 results were tracking slightly
below our forecast, we opt to leave our
estimates unchanged as we still expect Astro
to gain traction in both customer and ARPU
growth. We are also making no changes to
our free cash-flow assumptions for now.
However, our DCF-based fair value dips
slightly from MYR3.26 to MYR3.21 due to a
higher risk-free rate assumption. But given
that there is still a total return of 11%, we
maintain BUY on the stock. (Carey Wong)
. . . . .
Keppel Land: Sells stake in Indonesian
hotel
KPLD reported that it has entered into an
agreement for a subsidiary to sell its 50%
stake in PT Pantai Indah Tateli, a Indonesian
company which owns Hotel Sedona Manado
in Indonesia, for USD 7.0m (S$8.8m). The
price was arrived at on a willing-buyer,
willing seller basis and took into account
prices of comparable properties in the
vicinity. We expect some divestment gains in
the ballpark of S$3.0-5.0m from this sale,
given that the unaudited book value
attributable to KPLD’s stake was S$3.2m as
at 31 Aug 2013. Given the size of the
transaction, however, the impact on RNAV is
likely to be limited. Maintain BUY with an
unchanged fair value estimate of S$4.09
(30% RNAV disc.) (Eli Lee)
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PostPosted: Fri Sep 13, 2013 9:13 am    Post subject: Reply with quote

OUE Hospitality Trust: The only pure Orchard Road play
OUE Hospitality Trust (OUEHT) is a stapled group consisting of OUE Hospitality Real Estate Investment Trust (OUE H-REIT), a REIT under which the initial portfolio is held, and OUE Hospitality Business Trust (OUE H-BT), a dormant business trust. The initial portfolio of OUE H-REIT comprises Orchard Road area’s largest hotel, the 1,051-room Mandarin Orchard Singapore (MOS) and the 196,336 sq ft GFA Mandarin Gallery (MG). These assets make OUEHT the only pure Orchard Road play in the REITs/Business Trust space. This initial portfolio has an aggregate value range of S$1,705m-S$1,756m, based on independent valuation estimates. Approximately 69% of the valuation is from MOS. The current oversupply situation in the Singapore hospitality sector is a known concern. Given this, we are pleased to note that MOS clocked 3.3% RevPAR growth for pro forma 1Q13. It is also worthwhile noting that 46.7% of MG’s leases by NLA have attractive step-up rental increases of 5.5% p.a., with only 20.7% of all leases by NLA expiring in FY13 and FY14. Based on a dividend discount model, we arrive at a fair value of S$0.94 for OUE Hospitality Trust and initiate our coverage with a BUY. (Sarah Ong)

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Suntec REIT: Unveils Suntec City’s new look
Suntec REIT announced yesterday that its major enhancement of Suntec City has reached a milestone with the opening of Phase 1 and Suntec Singapore. Management reported that Suntec Singapore has hosted 96 events and 650k visitors since opening in Jun 2013, affirming its status as an attractive Meetings, Incentives, Conventions and Exhibitions (MICE) destination, and expects a full calendar ahead for 2013 with customers like Spikes Asia, IFLA etc. The newly created retail space at Phase 1 now houses ~100 retail outlets and 50 F&B restaurants, including UNIQLO’s largest outlet in Singapore. We continue to believe that the outlook and valuation remains attractive for Suntec REIT. Maintain BUY with an unchanged fair value estimate of S$1.80. (Kevin Tan)

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


NEWS HEADLINES

- US stocks declined on Thu, with the S&P 500 snapping its seven-session winning streak, as investors worried about development related to Syria and Federal Reserve policy moves.

- Indonesian businessmen Anthoni Salim and Putra Masagung have succeeded in their bid to take property and engineering group Guthrie GTS private.

- Sembcorp Marine announced yesterday that its subsidiary, Jurong Shipyard, has secured a US$346m contract to build a rig, putting it close to its rival, Keppel Offshore & Marine (O&M), in terms of new deals won this year.

- Cosco Corporation (Singapore)'s shipyard business has secured offshore and shipbuilding contracts totalling US$366m.

- See Hup Seng has entered a conditional agreement to buy Hetat Holdings, which primarily deals in designing, engineering and construction of steel, aluminium and glass structures, for S$42.4m.

- Singtel’s Optus Business has signed a A$530m (S$625m) deal with ANZ that will see the telco provide the banking group with telecommunications and managed services for another five years.
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PostPosted: Mon Sep 16, 2013 9:14 am    Post subject: Reply with quote

First REIT: Upgrade to BUY on valuation grounds

Summary: We visited five of First REIT’s (FREIT) properties (four hospitals and one hotel and country club) in Indonesia over a two-day period last week. The hospitals are operated by Siloam International Hospitals (subsidiary of Lippo Karawaci) and are generally well-maintained and equipped with modern medical equipment from international brands such as Siemens and Philips. Meanwhile, FREIT recently lowered its floating rate exposure from 72% to 46% of its total debt following a refinancing exercise. Its next refinancing need will only come in 2016. We believe that FREIT’s sharp share price correction has been overdone, as it has minimal exposure to the volatility in the IDR thanks to its lease structure. Hence we upgrade FREIT from Hold to BUY on valuation grounds, with an unchanged fair value estimate of S$1.20. FREIT also offers an attractive forecasted distribution yield of 7.6% in FY13 and 8.3% in FY14. (Wong Teck Ching Andy)

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


NEWS HEADLINES

- US stock markets are pricing in a decision by the Federal Reserve to start scaling back its bond purchase when it concludes a two-day policy meeting Wed. The consensus view among economists is a reduction in Fed’s monthly bond purchase starting in September of US$15b per month.

- Former Treasury Secretary Lawrence Summers has withdrawn his name from consideration to be chairman of the Federal Reserve.

- Datapulse Technology announced a proposed capital reduction exercise involving a cash distribution of S$0.035 each share.

- CSC Holdings awarded foundation contract for Changi Airport’s Terminal 4, providing expertise to construct foundations for airport terminal, building terminal, ancillary buildings and infrastructure.

- Singapore Kitchen revenue soared 42.5% to S$7.8m in 1H 2013.

- UOL Group says Amedeo Patrick Imbardelli has resigned as president/director and CEO of Pan Pacific Hotels Group to pursue other career opportunities.

- Freight Links reported 1Q 2013 net income S$3.6m vs S$6.6m a year earlier.
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PostPosted: Tue Sep 17, 2013 8:47 am    Post subject: Reply with quote

Golden Agri-Resources: Downside risk remains
Golden Agri-Resources (GAR), being one of the largest palm oil plantation owners in the world, is likely to feel the negative impact of further pullback in CPO (crude palm oil) prices, especially after the recent rebounds in prices of CPO and GAR shares. With demand from both China and India – two of the world’s largest import markets for CPO – likely to remain soft, we believe that the worst is not over yet for the upstream players. Hence we maintain our SELLrating and S$0.465 fair value (still based on 11x blended FY13/FY14F EPS). (Carey Wong)

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Singapore Residential Property: Buyers moving to EC market
A headline total of 1,468 new private homes (including 726 EC units) were sold in Aug 2013, up 147% MoM and down 5% YoY. Excluding EC and landed-units, however, only 793 units were sold - up 53% MoM and down 47% YoY with a softer take-up rate of 80% (versus 85% in Jul 13). We believe the market is still finding its legs after the TDSR measures which have moved buyers to further focus on issues of availability of credit and affordability. One key impact is that significant demand has moved to the EC segment, which allows for HDB upgraders to access larger amounts of credit versus private property. EC sales were bullish in Aug 13 with 726 units sold – this constituted 49% of the 1,468 headline number and increased a whopping 548% MoM and 515% YoY. Maintain NEUTRALon the SG residential sector. Our top picks are CapitaLand [BUY, S$3.77], Keppel Land [BUY, S$4.09] and CapitaMalls Asia [BUY, S$2.55]. (Eli Lee)

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


NEWS HEADLINES

- US stocks mostly rose on Mon, lifting the S&P 500 index within reach of its record after Larry Summers took his name out of the running to head the Federal Reserve.

- Blumont Group announced yesterday a move to take a 15% interest in Resource Generation Limited - a coal-miner in which Noble Group also has a stake - for up to A$22.11m.

- Logistics Holdings intended to invest about S$5m in a joint venture to build a pre-cast products manufacturing plant in Iskandar.

- FSL Trust Management, the trustee manager of First Ship Lease Trust, said yesterday that Omni Ships, the lessee of its two dry bulk carriers, has defaulted on its lease payments.

- Chip Eng Seng Corporation's subsidiary has won a S$103.8m contract from the HDB to build six blocks of residential buildings with 700 units and other community facilities in Jurong West Neighbourhood 6.
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PostPosted: Wed Sep 18, 2013 8:53 am    Post subject: Reply with quote

Ezra Holdings: No change in fundamentals
The share price of Ezra Holdings has seen an astounding increase of about 40% in the past week. Though Ezra has clarified earlier that it was not aware nor has it been engaged on a takeover by Samsung Heavy Industries, there could possibly be other offers by potential acquirers along the way. Still, there has been no change to the company’s fundamentals since its disappointing 3QFY13 results. Looking ahead, we believe that execution risks are still not over for Ezra, despite an order book of more than US$2b, as this is susceptible to project delays and cost overruns. Without any official offer or significant contract wins, the recent price gain appears overdone. Based on fundamentals, we are retaining our fair value estimates of S$0.99, and at current price, we downgrade our rating to SELL. (Low Pei Han)

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


NEWS HEADLINES

- US stocks rose on Tue, with the S&P 500 index finishing above 1,700 for the first time since early Aug, after Microsoft hiked its dividend and as Wall Street awaited the next day’s monetary-policy decision from the Federal Reserve.

- Asiasons Capital breaks into Oil & Gas sector by acquiring 27.5% stake of US-based Black Elk for S$218m. Acquisition will be funded by the issuance of 194,642,712 new ordinary shares at S$1.1948 per share.

- Rex International Holding announced the acquisition of stakes in two more licences in Norway, with total number of licences increases to 15 in four regions from initial 10 as at listing on 31 Jul.

- Parkway Life REIT announced that the acquisition of five Japanese nursing home properties generates accretive net property yield of 7.0%.

- SingTel has beaten StarHub and M1 to the punch for new iPhone price plans.
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PostPosted: Wed Sep 18, 2013 10:39 am    Post subject: Reply with quote

Hi Guys and Gals,

With effect from 1 Oct 13, I will cease posting Stock market news and reports in this forum. All postings will be in www.redbeanforumsg.blogspot.sg.

Cheers.

Redbean
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PostPosted: Thu Sep 19, 2013 9:15 am    Post subject: Reply with quote

Soilbuild Business Space REIT: Best proxy to Singapore industrial market
We are initiating coverage on Soilbuild Business Space REIT (Soilbuild REIT) with a BUY rating. Soilbuild REIT currently owns a young portfolio of seven modern business space properties in Singapore and has the largest exposure to the business park segment. We like Soilbuild REIT’s exposure in this space because demand in the local scene has been growing steadily throughout the years. We also believe that Soilbuild REIT is able to leverage on the capabilities of its Sponsor, Soilbuild Group, to grow its income given its track record and expertise. Soilbuild REIT is granted Right of First Refusal (ROFR) by its Sponsor over all its income-producing business space assets in Singapore. The ROFR currently covers four industrial properties, providing Soilbuild REIT with a clear acquisition pipeline. As of the listing date, Soilbuild REIT is sitting at healthy gearing ratio of 29.9%, while 75.0% of its interest rates are fixed. This not only gives Soilbuild REIT ample debt headroom to pursue its growth plans but also limits its exposure to rising interest costs. Our fair value of S$0.82 implies an attractive total expected return of 20.1%. At current price, Soilbuild REIT is also trading at the steepest discount of 8.8% to its book value, compared to its subsector peers. This is unjustified in our view given Soilbuild REIT’s quality portfolio assets, growth potential and respectable FY14F yield of 7.8%. (Kevin Tan)

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BreadTalk Group: Why the rush?
With BreadTalk’s share price seemingly poised to cross the S$1 barrier again, we remain steadfast in our analysis and assertion that valuations are stretched at current levels. While the group’s growth proposition appears attractive, realizing future potential takes time, and more importantly, carries significant operating and execution risks. Its operating margins have also remained in the low single-digit region. Furthermore, the group’s valuation is expensive when compared to more established regional peers that compete in the same markets. We maintain our SELL rating with an unchanged fair value at S$0.77, and will look to re-rate the stock only when its margins arrest their decline and operations approach a steady-state. A takeover angle at this juncture is also unlikely as we do not envision MINT launching a takeover bid anytime soon in the coming quarters at current price levels. (Lim Siyi)

Singapore REITS: Expect bounce from no Fed tapering
This morning, the Fed announced that it would not reduce asset purchases in Sep-13 and reiterated that the job market remains a key economic concern. This outcome is above view, given that the consensus was for a tapering of US$5b-S$10b. In addition, we note Chairman Bernanke also indicated that, even after winding down assets purchases ahead, the “Fed’s rate guidance and its ongoing holdings of securities will ensure that monetary policy remains highly accommodative, consistent with an aggressive pursuit of our mandated objectives of maximum employment and price stability.” As a result of this dovish stance, the yield on the 10Y Treasury note dipped 15bp to 2.7% and the S&P500 rallied 1.22% overnight. While our rating on the sector is NEUTRAL, we believe the REIT sector would likely see a short-term bounce ahead and continue to advocate counters that show significant value at current prices. Our top picks in the sector are CapitaCommercial Trust [BUY, FV: S$1.61], Starhill Global REIT [BUY, FV: S$0.95] and Suntec REIT [BUY, FV: S$1.80]. (Eli Lee)

OUE Hospitality Trust: Declined stakes in Chinese hotels from sponsor
OUE Hospitality Trust (OUEHT) has declined an offer from its sponsor, OUE Limited, for the acquisition of a 100% stake in Meritus Mandarin Haikou and an 80% stake Meritus Shantou China for purchase considerations of S$58.7m and S$49.3m, respectively. These stakes were part of the sponsor’s ROFR pipeline. The offer was declined as the acquisition would not have been accretive to the distribution per stapled security of OUEHT. Our current model does not assume any acquisitions and this development does not affect our valuation. We believe a number of investors like OUEHT because of its Singapore-based assets, and are interested in the last asset in the ROFR pipeline – the 100% stake in Crowne Plaza Changi Airport, for which an additional 200 rooms are expected to be developed by the end of 2015, which means any offer by the sponsor would likely come after that. We maintain our fair value of S$0.94 on OUE Hospitality Trust and our BUYrating. (Sarah Ong)

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


NEWS HEADLINES

- US stocks climbed to record highs on Wed and the benchmark 10-year Treasury yield fell sharply after the Federal Reserve abstained from reducing its bond buys.

- Keppel Shipyard has secured two FPSO conversion contracts from repeat customers worth a total of S$190m.

- Yanlord Land Group has achieved about CNY2.607b (S$536m) in sales in the first two weeks of this month.

- Hyflux has officially opened Singapore’s second desalination plant with a capacity to process 70m gallons of seawater daily.
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