Thursday, October 19, 2017

SG Market (19 Oct 17)

MARKET OVERVIEW
- The market is likely to trade in range, as investors await 3Q earnings releases from Keppel Corp tonight, as well as CapitaLand Commercial Trust and Frasers Commercial Trust tomorrow.
- Technically, the STI sees the next upside resistance at 3,355, with support at 3,280.

CORPORATE RESULTS
*Keppel REIT
- Weak 3Q17 as DPU slumped 12.5% to 1.4¢, taking 9M17 DPU of 4.27¢ (-12.7%) below street FY17 estimate.
- Distributable income fell 10.4% to $47m on reduced rental support (-22.4%), lower interest income (-2.6%), higher borrowing cost (+6%) and a drop in associate income (-17.1%).
- Gross income inched 2.3% higher to $40.4m from increased takings at 8 Exhibition Street (+20.4%), but was pared by a 0.7% slip in income from Ocean Financial Centre.
- However, NPI was flat at $31.7m (+0.3%) as property expenses jumped 10.3% from a 28% spike in property tax.
- Portfolio occupancy slipped 0.2ppt q/q to 99.6%, while aggregate leverage ticked higher to 38.8% (+0.3ppt q/q).
- Trades at 3Q17 annualised yield of 4.7% and 0.84x P/B.

*Keppel T&T
- 3Q17 net profit crashed 81.7% to $12.8m, mainly dragged by the absence of divestment gains (3Q16: $55.8m).
- Otherwise, core 3Q17 net profit slumped 27%, as revenue slipped 3% to $45m due to weak warehousing turnover in the logistics division and zero contribution from Keppel DC Singapore 3 and Keppel DC Reit Management following the sale.
- Bottom line was also impacted by higher operating expenses (+7.8%) from increased transportation costs, contract labour and subcontract costs in the logistics division.
- Net gearing reduced 8ppt to 38%.
- NAV/share at $1.45.

*ESR-REIT (former Cambridge REIT)
- 3Q17 DPU dipped 2.3% to 0.964¢, taking 9M17 DPU of 2.924¢ (-8.0%) to 73% of FY17 estimate.
- For the quarter, gross revenue slipped 1.9% to $27.1m amid income loss during the transition of properties from single-tenanted to multi-tenanted.
- NPI of $19.6m (-1.6%) also fell on higher expenses and increased maintenance cost.
- Portfolio occupancy narrowed 4.3ppt q/q to 91.1%, while aggregate leverage contracted 1.2ppt q/q to 36.7%.
- Separately, the REIT proposed to acquire an industrial property at 8 Tuas South Lane for $95m, 17% below market valuation.
- Pro forma FY16 DPU post-deal is expected to jump 8.5% to 4.527¢.
- NAV/unit at $0.633.

POSITIVE NEWS
*SGX
- Launched SGX America in Chicago to better serve the growing demand for North American investors who are looking East for growth opportunities across asset classes.
- Separately, SGX established a collaborative listing agreement with Nasdaq to tap corporate demand for a concurrent or sequential listing on both exchanges.
- Trades at 21.9x forward P/E.

*SATS
- Entered agreement with Turkish Airlines (THY) to provide in-flight catering services to THY and other airlines at Istanbul New Airport.
- As a gauge, THY has a fleet of 329 (passenger and cargo) aircraft.

NEGATIVE NEWS
*Ezion
- Served an originating summons taken by Ravi Murarka, one of the noteholders for its $120m 3.65% notes due in 2020.
- The noteholder is requesting the group to redeem his notes on the basis that shares have ceased trading and could be in violation of the terms of the notes.
- Ezion believes otherwise, citing that its shares are merely suspended on its own request, and is currently seeking legal advice on the summons.

*Lippo Malls Indonesia Retail Trust
- Leasing 67,261 sqm of retail space to a party related to its sponsor for three years upon the expiry of existing leases on 18 Nov '17.
- Aggregate rental of $21.4m is in line with market rates, but will result in a 4.5% drop in 1H17 pro forma DPU to 1.71¢.
- Based on last close, this reduces 1H17 annualised yield from 8.2% to 7.9%.

*NSL
- Guided for 3Q17 loss due to continued poor performance within the precast & PBU division.
- This was compounded by losses suffered by waste management services following a fire incident in Mar '17.
- Trades at 0.9x P/B.

NEUTRAL NEWS
*CapitaLand
- Investing $81.5m to acquire and refurbish a freehold hotel in Silicon Valley.
- The 136-unit hotel, The Domain Hotel, will be rebranded to Citadines Cupertino Sunnyvale in 4Q18.
- This will be Ascott's second Citadines-branded property in the US following the acquisition of Hotel Central Fifth Avenue New York in May '17.
- Trades at 17.9x forward P/E.

*UMS
- Book will close on 26 Oct for its 1-for-4 bonus share issue.

Tuesday, October 17, 2017

SG Market (17 Oct 17)

MARKET OVERVIEW
- The market will likely stay relatively subdued ahead of the commencement of the China Communist Party congress tomorrow.
- Technically, the STI sees upside resistance at 3,355, with support at 3,275.

SECTOR WATCH
*Property
- Sep new home sales slowed sequentially to 657 units (Aug: 1,246) due to seasonal factors, but still above 509 homes sold last year.
- Maybank KE expects slower sales in the coming months as developers raise prices to maximise returns.
- Remain POSITIVE on the sector with preferred picks being City Dev (TP $13.60), UOL (TP $9.80) and GuocoLand (TP $2.90).

CORPORATE RESULTS
*M1
- 3Q17 net profit of $32.7m (-4.8%) met estimates, dragged by higher depreciation (+2.5%) and interest costs (+52.6%).
- Operating revenue rose 3.4% to $251.6m despite a 13.6% slump in handset sales, as service revenue improved to $206.7m (+4.9%) on a greater number of customers in postpaid (+3.2%) fibre (+20%).
- However, EBITDA margin narrowed 1.3ppt to 36.5%.
- Management maintains its guidance for a decline in FY17 net profit in view of increased competition.
- Last traded at 12.9x forward P/E.

*Keppel Infrastructure Trust
- Flat 3Q17 DPU of 0.93¢ came in line with street estimates.
- Revenue stagnated at $160.3m as stronger takings from City Gas (+13.4%) due to higher gas tariffs was offset by weakness in concessions (-22.4%) and Basslink (-10.7%), while Keppel Merlimau Cogen remained stable.
- Aggregate leverage increased slightly to 39.7% (+0.6ppt q/q).
- Separately, group confirmed it is reviewing a possible divestment of Basslink.
- Trades at 6.8% 9M17 annualised yield and 1.8x P/B.

*Keppel DC REIT
- 3Q17 results met forecasts as DPU spiked 16.8% to 1.74¢, boosted by acquisitions.
- Gross revenue jumped 56.4% to $35.5m on new contribution from four recently-acquired data centres, as well as higher variable income from KDC SGP 1.
- Portfolio occupancy inched 0.3ppt q/q to 93.4% with WALE of 9.2 years, while aggregate leverage expanded 4.4ppt q/q to 32.1%.
- NAV/unit at $0.96.

POSITIVE NEWS
*GLP
- Signed 173,000 sqm of leases with 3PL service providers globally.
- Privatisation offer via scheme of arrangement at $3.38/share is pending.

*Hiap Seng
- Secured three contracts worth $52m.
- This comprises EPC of new pipelines for Sembcorp Project Engineering in Singapore, as well as supply of modular pipe racks and mechanical packages for Evonik in Thailand.

NEGATIVE NEWS
*Singtel
- Fined $0.5m for a fibre broadband outage last Dec.
- The disruption was triggered by a planned maintenance on its highly utilised DHCP servers, where a security patch resulted in overloading.
- The group was penalised for not exercising due diligence and greater caution on its servers.
- Last traded at 15.5x forward P/E.

NEUTRAL NEWS
*Trendlines
- Invested US$60,000 in a medical device startup, which develops a urological catheter to address the problem of catheter-associated urinary tract infection.
- Separately, Trendlines signed an MOU with Haier Hai Chuanghai Incubator and Ventures to explore possible collaborations to support Trendlines' China portfolio and Haier HCH's entrepreneurs in Israel.

Monday, October 16, 2017

SG Market (16 Oct 17)

MARKET OVERVIEW
- Key highlight this week is the commencement of the China CPC on 18 Oct (Wed), where investors will focus on the direction to be set by top leader Xi Jinping for the country over the next five years.
- Technically, the STI sees immediate upside resistance at 3,320, with the next objective at 3,355. Downside support is at 3,275 followed by 3,250.

CORPORATE RESULTS
*Soilbuild REIT
- 3QFY17 DPU dipped 1.8% to 1.374¢, bringing 9MFY17 DPU to 4.329¢ (-4.2%).
- Quarter revenue grew 4.1% to $20.5m on higher takings from Bukit Batok Connection, West Park BizCentral, Solaris, Tuas Connection and Tellus Marine, but was partially offset by reduced income from 72 Loyang Way.
- NPI rose at a slower clip to $17.8m (+3%), on higher property expenses (+11.3%) at Loyang Way and Bukit Batok Connection.
- Occupancy rate improved 1.5ppt to 94.1%, while average debt cost was slightly lowered to 3.32% (2QFY17: 3.37%).
- NAV/unit at $0.71.

*Transit Mixed Concrete
- 1H17 net profit crashed 93% to $0.8m, alongside by a 27% fall in revenue to $8.6m on keen competition and slowdown in construction activities in Singapore and Malaysia.
- Consequently, gross margin slumped to 11.1% (-9.6ppt), while bottom line was further dragged by a 77% dive in other income to $0.6m.
- Management expects weak demand and stiff competition to persist.
- Slashed interim DPS to 1¢/share (1H16: 1.5¢).
- Last traded at 19.4x trailing P/E.

POSITIVE NEWS
*AEM
- Guided for higher FY17 pretax operating profit of at least $32m from $24m previously.
- The raise was due to higher sales, better profit margin, and improved operational efficiency.
- AEM is under-researched with only one broker coverage with a Buy and TP of $3.43.
- Last traded at 8.2x forward P/E prior to the 33% earnings upgrade.

*Lippo Malls Indonesia Retail Trust
- To acquire Lippo Plaza Jogja and Kediri Town Square for $98.1m.
- The slightly accretive deal will boost its portfolio to 30 properties in Indonesia with a valuation of over $2b and NLA of 921,026 sqm.
- Pro forma FY16 DPU of 3.43¢ (+0.6%) translates to an implied yield of 7.9%.

*GL
- Exploring the sale of property assets on Molokai Island in Hawaii.
- The assets are listed for sale at US$260m, consisting of 55,000 acres of land and operations which provides water and wastewater services.
- Last traded at 16.7x trailing P/E.

*Vard
- Invited to further negotiate with the Norway government for the construction of three new coast guard vessels.
- Tender for the project is scheduled for approval by the Norwegian Parliament in 2018 and the first vessel is slated for delivery in 2022.
- Last traded at 0.77x P/B.

NEUTRAL NEWS
*Ocean Sky
- Formed a 70:20:10 JV with Progen Industrial and Seacare Property Development.
- The JVCo will undertake the redevelopment of the properties at 17 Balmoral Road.

*Swiber
- Group's judicial management has been extended to 31 Oct '18.
- Judicial managers have also been granted an extension to 31 Mar '18 to send proposals to creditors for its debt restructuring.

*Olam
- Secured a revolving credit facility worth US$1.75b from a consortium of banks.
- Proceeds to be used towards refinancing of existing loans.

Friday, October 13, 2017

SG Market (13 Oct 17)

MARKET OVERVIEW
- The STI could be boosted by strong economic data with a preliminary 3Q GDP growth reading at 4.6% (est: 3.8%, prior: 2.9%). MAS sprung no surprises and maintained its neutral stance for the S$NEER policy band.
- The expansion was led by manufacturing (+15.5%) and services (+2.6%), but partly offset by construction (-6.3%).
- Technically, the STI sees upside resistance pegged at 3,320, with support at 3,275.

ECONOMY WATCH
- Aug retail sales growth of 3.5% came above expectations and marks the sixth straight month of growth, following Jul's 1.7%.
- Excluding motor vehicles (+2.8%), sales was higher at 3.7%, led by petrol (+9.5%), recreation (+8.3%), medical goods & toiletries (+7.6%).
- However, growth was partially pared by weakness in optical goods & books (-4.1%), food retailers (-2.1%), mini-marts & convenience stores (-1.1%) and watches & jewellery (-0.4%).

CORPORATE RESULTS
*Lian Beng
- 1QFY18 net profit slumped 29.4% to $8.9m, alongside a 47.5% dive in revenue to $37.2m (-47.5%) on weak contribution in construction.
- Gross margin improved 7.2ppt to 33.4% on a shift in sales mix.
- Bottom line was lifted by $10.5m in disposal gain on investment property in Melbourne, Australia, although partly offset by reduced JV/associate income to $3.2m (-60.5%).
- Construction order book at $661m to provide activity through FY2020.
- Separately, group is exploring a spin-off of the property development business on the Catalist Board, in a bid to attain better valuations.
- Last traded at 6.6x trailing P/E.

*GKE
- Swung into a 1QFY18 net loss of $1.1m (1QFY17: $0.1m profit), dragged mainly by associate/JV loss of $0.7m (1QFY17: $0.5m profit).
- Revenue jumped 53.1% to $17.4m on new contribution from port operations service provider TNS Ocean Lines, and higher sales from the ready-mix concrete manufacturing plant in China.
- However, gross margin contracted to 19.1% (-4.2ppt) on the change in sales mix.
- Separately, GKE updated it is no longer in discussions on a possible transaction.
- NAV/share at $0.1198.

POSITIVE NEWS
*Keppel T&T
- 30:70 JVCo, Keppel Data Centres, has partnered with Canada Pension Plan Investment Board to invest up to US$350m in the Alpha Data Centre Fund.
- The investment includes the option to invest an additional US$150m, which would lift the fund AUM to US$1b, double its initial target.
- When fully leveraged, Alpha Data Centre Fund is estimated to have an AUM of US$2.3b.
- Last traded at 15.2x forward P/E and 1.04x P/B.

*Sapphire
- Secured two contracts for municipal metro and rail transit lines in China totalling Rmb856m ($176m).
- This will lift order book to a record high of Rmb3.4b and the new contracts are expected to positively impact FY18 and FY19 financials.
- Last traded at 8.7x trailing P/E.

*Ley Choon
- Secured a $3.9m PUB contract for water main repairs and other contract work for network services.

NEUTRAL NEWS
*Raffles Education
- Second largest shareholder, Oei Hong Leong (12.88% stake) has called for an EGM to oust chairman Chew Hua Seng (33.58% stake).
- Oei is reportedly seeking the placees of the recent placement of 95m new shares (8.96% share capital) at $0.30 apiece. - Counter is loss-making and trades at 0.6x P/B.

*Oxley
- To place out 22.7m treasury shares at $0.59/share via Maybank KE as its placement agent.
- Net cash proceeds of $13m to be used for working capital.
- Last traded at 1.8x P/B.

*Tee International
- To form a 51:49 JVCo with Malaysian Solar Resources, a solar solutions and services provider, for future solar tenders in Singapore.
- Both companies would also jointly explore solar investment opportunities in Southeast Asia.
- Last traded at 1.05x P/B.

*Poh Tiong Choon
- The $1.30/share buyout offer has been declared unconditional after the offeror received 67.24% valid acceptances.
- Together with open-market acquisitions, the consortium currently holds a 67.76%-stake in the company.
- Offer deadline has been extended from 6 Nov to 20 Nov.

*AnAn International (former CEFC)
- Entered JV agreement with CITIC Construction, Beijing Construction Engineering, Beijing Yintai Investment.
- The JVCo will undertake import and and export factoring, onshore and offshore factoring, as well as provide consultancy services to commercial factoring.
- Last traded at 30x trailing P/E.

*DISA
- Collaborated with a portable navigation consumer electronics company to integrate DiSA's digital asset protection technology and PoS activation solution into their products.
- Units are available in US retail stores with retailers benefitting from an overall price reduction.

Thursday, October 12, 2017

SG Market (12 Oct 17)

MARKET OVERVIEW
- Positive sentiment could spillover to the SG market following the release of slightly dovish Sep Fed minutes, and bolstered by easing tensions in Spain.
- Technically, the STI see immediate support at 3,275, with upside resistance pegged at 3,320.

CORPORATE RESULTS
*SPH
- FY17 net profit grew 32% to $350.1m, mainly lifted by a $149.7m divestment gain arising from a 33% stake sale in online classified site 701Search.
- Otherwise, full-year core earnings of $200.4m (-24.5%) missed street forecasts.
- Operating revenue of $1.05b (-8.8%) continued to be pressured by the core media business (-13%).
- EBIT margin contracted to 19.5% (-7ppt), on impairment charges totalling $60.6m.
- Final and special DPS shaved to 9¢ (4Q16: 11¢), bringing FY17 DPS to 15¢ (FY16: 18¢).
- Group reducing headcount further and expects to incur retrenchment costs of $13m in 1QFY18.
- Last traded at 19.1x forward P/E and 2.7% dividend yield.

*Duty Free International
- 2QFY18 net profit crept 1.6% higher to RM14.1m, lifted by a RM1.6m fair value gain on option.
- This brought 1HFY18 earnings to RM29.1m (-13.6%), or 45% of full-year street estimate.
- Quarter revenue slipped 5.5% to RM148.3m, on lower demand due to the GST imposition at border outlets and duty free zones.
- Declared second interim DPS of 0.5¢ (2QFY17: nil).
- Trades at 13.9x forward P/E.

*TEE International
- Slumped into a 1QFY18 net loss of $0.9m (1QFY17: $0.6m profit) on gross margin compression.
- Revenue rose 9.6% to $70.1m from higher progressive sales from ongoing development properties, but gross margin contracted to 10.1% (-1.2ppt).
- Bottom line was further impacted by a 221.3% spike in selling & distribution expenses on promotional activity, as well as absence of tenant compensation (1QFY17: $0.4m) and FX gain (1QFY17: $0.2m).
- NAV/share at $0.189.

*TEE Land
- 1QFY18 net profit dived 96.3% to $22,000.
- Revenue surged 88.4% to $26m on higher progressive revenue from development projects Hibre 28, 183 Longhaus and Have Avenue project.
- But gross profit narrowed to 16.3% (-12.1ppt) on a shift in sales mix.
- Earnings fizzled on a 225% spike in selling & distribution costs from promotional expenses incurred and lower associate contribution (-20.3%).
- NAV/share at $0.352.

POSITIVE NEWS
*Midas
- 32.5% owned Nanjing Puzhen Rail Transport secured three metro train car supply contracts worth Rmb2.37b.
- The contracts are slated for delivery between Jun '18 and Mar '21.
- The counter is a beneficiary of China's push to develop and expand urban rail transit systems to meet the needs of urbanisation.
- Last traded at 11.9x forward P/E.

NEUTRAL NEWS
*Accrelist
- Proposed placement of 500m new shares (8.7% enlarged share capital) at 0.8¢ to two parties.
- The placees include management consultancy firm, Summit Planners Advisory Group, and non-exec director, Liu Song.
- Net proceeds of $3.9m intended to support M&A of WE Crowdfunding and working capital.

*shopper360
- Proposed 11% investment in a cross-platform Malaysian B2B commerce solution provider, Boostorder, for RM2.5m.
- The investment is synergistic to the group's existing proprietary software and customer base.
- Last traded at 1.2x trailing P/E.

*Miyoshi
- Entered into an agreement to dispose a 60-year leasehold, underutilised cold storage and office at 5 Second Chin Bee Road for $7.8m.
- The sale price is at a 6% discount to a market valuation done back in 2015, and the group estimates a disposal gain of $4.2m.
- Net proceeds from the disposal will be used to pare debt and for working capital.

Wednesday, October 11, 2017

SG Market (11 Oct 17)

MARKET OVERVIEW
- Market sentiment is expected to remain subdued as traders awaiting key data from US (inflation), China (trade)and Singapore (3Q GDP, MAS policy) this Fri.
- But support could come from the latest IMF update, which bumped up its global growth forecasts as an upswing in the world economy is expected to gather pace into next year.
- Technically, the STI is approaching overbought territory with upside resistance pegged at 3,320 and underlying support at 3,275.

SECTOR WATCH
*Property
- According to news reports, CapitaLand is holding back sales of two residential projects (57% sold Marina Blue, 81% sold Sky Habitat).
- This comes as other developers, Landlease, Qingjian Realty and GuocoLand have also postponed the next phase of their sale launches for projects launched earlier this year, possibly in the hope of raising prices next year.
- Top picks are UOL (TP: $9.43), GuocoLand (TP: $2.75) and City Dev (TP: $12.05).

POSITIVE NEWS
*Sunpower Group
- Clinched a Rmb94.8m contract to provide four cold hydrogenation fluidized bed reactors to Chinese conglomerate Inner Mongolia Tongwei.
- Delivery is slated by 1H18 and will be positive for the group's FY18 results.
- Last traded at 15.7x trailing P/E.

*Spackman Entertainment
- Korean film, The Outlaws, distributed by 51%-owned subsididiary, has taken the top spot in the Korean box office for two consecutive days.
- Separately, the group raised its stake in 26.17% owned talent agency, Spackman Media Group, to 29.12% for US$2.7m. This will be funded via issue of by 28.5m new shares (6.1% of share capital) at $0.13 each.
- Proposed to acquire a development stage motion picture production firm, Take Pictures, for $3.9m, via cash ($0.6m) and 25.7m new shares (5.6% of share capital) at $0.13 each.
- Last traded at 8.6x forward P/E.

*ValueMax
- Completed acquisition of Sengkang Pawnshop for $3.58m.
- The acquisition will provide an additional revenue stream and is in line with group's expansion plan.
- Last traded at 9.6x trailing P/E against 10.1x for peer Maxi-Cash'.

NEGATIVE NEWS
*Sarine Technologies
- Guided for a 3Q17 operating loss of several hundred thousand dollars.
- Forecast revenue for 3Q17 will just exceed US$11m (-33%).
- The lacklustre quarter was due to excess inventories of polished diamonds, which prompted manufacturers to slow down production and hold off capex, and imitation products that impaired the sales of its capital equipment.
- Last traded at 14.2x forward P/E.

NEUTRAL NEWS
*SGX
- Proposed a slew of changes to encourage new remisiers to join the industry in bid to improve trading activity on the local bourse.
- These proposed changes include removing the minimum $30,000 security deposit in order to allow broking houses to set their own credit limit, and giving brokers more flexibility to operate off-premises and their own non-trading businesses.
- Last traded at 21.5x forward P/E.

*Frasers Centrepoint
- Acquiring two warehouse facilities in Moosthenning, Bavaria/Germany, for €42.4m ($67.8m).
- The properties with a combined gross lettable area of 72,558 sqm are leased on a long-term basis to a leading German car manufacturer for the warehousing of automotive spare parts.

*SUTL Enterprise
- Secured its second management contract in China for an upcoming integrated marine located at Sanshan Island, Suzhou.
- The contract will be for a 10-year term, with no further financial details provided.
- Separately, the group inked an MOU with Hainan Cruise & Yacht Association to exchange ideas regarding the development and expansion of Hainan Island's leisure marina industry.

*Trendlines
- Proposed placement of 100m new shares (19.7% existing share capital) at $0.1403 (10% discount to last close) to placement agent PrimePartners Corporate Finance.
- Net proceeds of $13.3m to be used for general working capital (30%) and investments into new, prospect or existing portfolio companies (70%).

*Libra
- Proposed interested party transaction for a 51% acquisition of investment holding company, which owns Malaysian incorporated travel agency, YC Travel & Tours, for $15m.
- Funding will be via 117.2m new shares at $0.128 apiece to be issued to Executive Chairman and CEO, Chu Sau Ben, and will lift his stake from 50.002% to 74.752%.

*Samurai 2K Aerosol
- Signed an MOU with Genesis GD for the latter to be the sole and exclusive distributor of Samurai's line of products in Cambodia.

*YHI International
- Entered into a JV agreement with a privately-owned automobile parts importer in Myanmar.
- The JVCo will develop and establish a marketing business for automobile and industrial products in Myanmar.
- YHI has the option to increase its shareholding to a maximum of 51% from its current stake 19%.
- Last traded at 26.7x trailing P/E and 0.97x P/B.

Tuesday, October 10, 2017

SG Market (10 Oct 17)

MARKET OVERVIEW
- The market may take a pause as traders stay on the sidelines ahead of the 3Q GDP growth estimate and MAS policy meeting this Fri amid the absence of upside catalysts.
- Technically, the STI has broken clear of its short term downward trend and above its 3,275 resistance and appears headed for the next upside objective at 3,320.

CORPORATE RESULTS
*SPH REIT
- 4QFY17 DPU inched up 0.7% to 1.42¢, bringing FY17 DPU to 5.53¢ (+0.5%), at the lower end of consensus forecast.
- Quarter's gross revenue grew 1.3% on positive rental reversion from Paragon and The Clementi Mall, while NPI s bumped up 3.9% due to lower expenses.
- Tenant sales at Paragon rose 2.1% with steady footfall, while that for The Clementi Mall fell 5.8% as visitor traffic slowed 0.3%.
- Its two properties continued to enjoy full occupancy despite mounting competition from shifting shopping trends.
- Trades at 5.5% yield and 1.06x P/B.

POSITIVE NEWS
*City Dev
- Announced a possible cash offer of 552.5p (21% premium to last close) for remaining 34.8% stake in UK-listed hotel arm Millennium & Corpthorne Hotels (M&C)
- This values the global hotel group at £1.79b or fairly attractive 12x EV/EBITDA and 0.67x P/B.
- While CDL intends to maintain M&C's current business model, MKE believes the asset-rich company offers potential to unlock value in in the medium term.
- MKE maintains Buy with TP of $13.60.

*Boustead Projects
- Secured three contracts totalling $56m, comprising the design and building of an industrial management complex ($27m) and two other contracts ($29m) for additions & alternations and fit outs for repeated customers.
- Order book backlog lifted to $217m.
- Management stated its intention to grow further in the waste management sector.
- Last traded at 16.3x trailing P/E.

*Willas-Array
- Guided for a significant increase in 1H17 net profit stemming from:
1) Higher demand for energy saving and automotive applications
2) Improved gross profit margin on a shift in sales mix
3) FX gain arising from the appreciation of the yuan

NEGATIVE NEWS
*Jason Marine
- Expects to incur a net loss in 1HFY18 due to softer demand caused by depressed oil prices and intense market competition.

NEUTRAL NEWS
*GLP
- Received SGX approval-in-principle for the proposed privatisation at $3.38/share via a scheme of arrangement.
- Full details of the scheme, including the IFA opinion, will be sent to shareholders by 1 Dec '17.
- If successful, GLP intends to complete the scheme on or before 14 Apr '18.

*SGX
- Launched four thematic indices with FactSet to support growing investor demand to track technology, cybersecurity, robotics and healthcare industries within the region and globally.
- Separately, it reported Sep securities turnover of $21.8b (+5% y/y, -16% m/m), with daily average of $1.1b (+11% y/y, -8% m/m).
- Total derivatives volume expanded to 16m contracts (+19% y/y, +1% m/m), while commodities derivatives volume totalled 1.7m contracts (+44% YoY, -11% MoM).
- There was one mainboard listing raising $58.2m and 164 new bond listings, raising $67.4b.
- Last traded at 24.1x trailing P/E.

*Viva Industrial Trust
- Declined the right of first refusal to acquire an industrial building in Ang Mo Kio for $300m.
- The REIT manager cited that the acquisition would require a major equity fund raising exercise and would not be DPU accretive to unitholders.

*Nam Cheong
- Filed a scheme of arrangement and 6-month moratorium with the High Court to restructure its debts, which will be heard on 12 Oct.
- Intends to convene a meeting with scheme creditors within three months.
- Trading in counter has been suspended since 21 Jul.

*Samko Timber
- Proposed to dispose two land parcels in Tangerang, West Java in Indonesia for Rp70b ($7m).
- The plots totalling 53,200 sqm is currently being utilised for the operation of one of its factory engaged in the production plywood and other wood products.
- The sale is in line with its strategy to streamline its operations and is expected to result in a disposal gain of $3.4m.

*OEL
- Terminated the non-binding term sheet for the RTO of Maxz Universal Development Group.
- Maxz manages resorts and its assets include Movenpick Heritage Hotel Sentosa.