SG Market (21 Jan 15)

Singapore shares are expected to see a flat opening despite the positive close overnight in US, as regional sentiment could be weighed after IMF made its steepest cuts to global growth outlook in three years. Asian markets are trading mixed this morning, with Tokyo (-0.4%), Seoul (+0.03%) and Sydney (+1.1%). From a chart perspective, technical signals appear rather neutral, with RSI and ADX not exhibiting any clear trends. Critical support for STI is tipped at its 200-dma at 3,288, with topside resistance seen at its 20-dma at 3,335. Stocks to watch *Mapletree Industrial Trust: 3QFY15 DPU rose 6.4% y/y to 2.67¢, taking 9MFY15 DPU to 7.78¢ (+5.0%). The quarter saw gross revenue at $78.1m (+3.3%) and NPI at $58.0m (+5.4%), led by increased rents from renewal leases in flatted factories, business park buildings and stack-up/ramp-up buildings and revenue contribution from completed development projects. Property operating expenses fell 2.4% to $20.2m, due to lower marketing commission and utility expenses. Occupancy stood at 90.8% with WALE of 2.6 years. Aggregate leverage was at 32.8% with an average interest cost of 2.2%. NAV/unit at $1.21. *CapitaCommercial Trust: 4Q14 results beat estimates, with distributable income and DPU up 5.7% y/y and 2.9% to $63.6m and 2.15¢, respectively, despite the enlarged base of CCT units due to the partial conversion of convertible bonds and absence of yield protection income for One George Street. Gross revenue grew 3.1% to $66.4m, while NPI improved 3% to $50.6m, on higher rents (+5.9%) across its portfolio. This brought FY14’s total DPU to 8.46¢ (+3.9%) and distributable income to $249.2m (+6.4%). Portfolio occupancy at 99.5%, excluding recently-TOP CapitaGreen, with WALE of 8.1 years. Aggregate leverage was at 29.3%, with average interest cost of 2.3% (-0.3 ppt) and tenor of 3.9 years. NAV/unit of $1.71. *Keppel T&T: 4Q14 net profit jumped more than 11x to $193.4m on revenue of $70.9m (+57.6%), fuelled by a $238.5m disposal gains of two data centre properties to Keppel DC REIT. Excluding these gains, operating results will be comparable to last year. Top-line was led by higher revenue from the data centre and logistics divisions, offset by lower revenue from the Investments division. Gross margin improved 1ppt to 21.1%. Final DPS of 15¢ declared (FY13: 3.5¢), comprising 3.5¢ final and 11.5¢ special dividend. NAV/share at $1.27. *Elektromotive: Proposed renounceable non-underwritten 1-for-1 rights issue of up to 1,628.2m new shares at 0.45¢ each, attached with two free detachable warrants with exercise price of 0.5¢ apiece. Estimated net proceeds of up to $7.1m intended for development and expansion of business (35%), publishing business (15%) and working capital (50%). *Blumont: Proposed private placement of 100m new shares at $0.01705 apiece, representing 3.7% of the enlarged share base, to Vigneswaran T Subramaniam, a private individual investor. The placement will raise net proceeds of ~$1.7m, to be used for general working capital. *OKH Global: Established $200m multicurrency medium term note programme, to be used for general corporate purposes, debt repayment and capital expenditure. *Rex: Completed drilling for three wells in the South Erin Block in Trinidad & Tobago. Oil-bearing sands were encountered in all wells, two of which are deemed to be commercial with substantial net pay sands. Separately, Rex raised its stake in Fram Exploration ASA from 22.3% to 30.3% for NOK13.7m (US$1.8m) through a fund raising. *QT Vascular: Started shipments for the GliderXtreme PTA catheter to China, with the initial shipment made via Shandong Weigao Medical Polymer Co. GliderXtreme is designed for the treatment of peripheral arterial blockages. *Hafary: Partial offer of 51% stake by Hap Seng Investment Holdings at $0.24/share has been declared unconditional, and will remain open for acceptance until 13 Feb. *Green Build Technology: formerly known as Youyue International, will be removed from SGX’s Watch-List, with effect from 21 Jan.