Friday, January 23, 2015
SG Market (23 Jan 15)
Stocks to watch: *Keppel Corp: 4Q14 in line, on net profit growth of 6.1% y/y to $725.9m, as revenue improved 9.1% to $3.9b, boosted by one-off gains in disposal of infrastructure and property fixed assets and divestments of subsidiaries and associates. Segment-wise, O&M margin slipped 1.8ppts, while infrastructure gained from divestments, property, on fair value gains offset by one-off gains from disposal of MBFC Tower 3. FY14 EPS $1.038 (1.5%), final DPS $0.36 brought FY14 total to $0.40 (FY13: $0.48). NAV of $5.67. *Capitamall Trust: 4Q14 distributable income climbed 5% y/y to $99.1m, in tandem with the rise in DPU to 2.86¢, bringing FY14 DPU to 10.84¢ (+5.6%). Gross revenue inched 2.2% to $165.2m, mainly from the completion of AEI works at Bugis Junction, but got outpaced by higher property expenses (+15.9%), which resulted in a fall in NPI to $106m (-4.1%). Portfolio occupancy held steady at 98.8%, while gearing ratio lowered 0.3ppt to 33.8%, with average debt cost of 3.5% and tenor of 4.7 years. BVPS at $1.81 *Frasers Commercial Trust: 1QFY15 results beat, distributable income and DPU rose 22% and 20% y/y to $16.7m and 2.46¢, respectively. Revenue leaped 23.3% to $35.6m, while NPI jumped 15% to $25.4m, significantly boosted by new underlying leases at Alexandra Technopark following the expiry of the master lease, as well as higher occupancies at China Square Central and 55 Market Street. Portfolio occupancy held steady at 96.6% with WALE 3.7 years, while aggregate leverage maintained at 37.2% with cost of debt of 2.7%. BVPU of $1.59. *Suntec REIT: 4Q14 results in line, distributable income jumped 11% y/y to $64.6m, while DPU edged 0.6% to 2.577¢, bringing FY14 total DPU to 9.4¢ (+0.8%). Meanwhile, gross revenue and NPI grew 7.3% and 6.5% to $76.8m and $53m, respectively, boosted by the opening of Suntec Singapore (Convention) and completion of Phase 2 of Suntec City’s AEI, as well as positive rental reversion (+4%) from offices. Office portfolio remained full, while retail occupancy improved 1.3ppt to 99.7%. Committed occupancy for Suntec City’s Phase 3 AEI is at 91.3%, which is expected to open “soon”. Aggregate leverage stood at 35.5%, with average debt cost of 2.44% and tenor of 3.63 years. BVPU of $2.117. *Creative: Announced Sound Blaster JAM, a lightweight Bluetooth headset for mobile devices which can be also connected PC/Mac via USB, which will be available for sale at end-Jan. *Ascendas REIT: 3QFY15 in line with estimates, as DPU inched up 1.4% y/y to 3.59¢, while distributable income climbed 1.6% to $86.4m. Revenue rose 11.2% to $171.7m while NPI increased 5.6%to $114.6m, as HIC and Aperia contributed to income streams, coupled with improved occupancy at Nexus@ one-north and A-REIT City@Jinqiao. Overall occupancy stood at 86.8% (+1.2ppt q/q) with WALE of 3.9 years. Aggregate leverage stood at 33.6% with all in borrowing cost of 2.7%. BVPS at $2.03 *United Engineers: Disposed entire 60% shareholding in Tangshan UE Shengxing Renewable Resources for Rmb6m. *CNA: Received statutory demand notice from First Gulf Bank for a claim of AED55.5m ($20.2m), owed from credit facilities.