SG Market (23 Apr 15)

Singapore stocks are expected to open higher, following the positive close on Wall Street, which was led by a jump in US existing home sales and a mixed bag or earnings reports from major corporates.

Regional bourses are trading mixed this morning in Tokyo (+0.4%), Seoul (-0.2%) and Sydney (flat).

Technically, key support/resistance levels for the STI are tipped at 3,468 and 3,561 respectively.

Stocks to watch:
*SGX: 3QFY15 results came in at the top end of estimates, with net profit up 16.4% y/y to $88.2m, while revenue gained 20.4% to $199.3m, driven by a 52.4% surge in derivatives revenue to $79.7m, as a result of strong China A50 Index and India Nifty Index futures volumes. Topline was also aided by the market data and connectivity segment (+11% to $21.1m) and the depository services segment (+14% to $25.8m). Meanwhile, securities revenue inched higher by 1% to $52.8m, as an increase in daily average volume of 8% was offset by a dip in average clearing fee to 2.9bps (-0.2bps). Operating margin was at 51.7% versus 53.3% from the previous year. 4¢ interim DPS maintained.

*Mapletree Commercial Trust: 4QFY15 results in line. DPU grew 2.4% y/y to 2¢ taking FY15 DPU to 8¢ (+8.5%), representing a yield of 4.9%. Gross revenue for the quarter increased 3.5% to $71.0m, while NPI gained 4.6% to $53.2m, led by improved contributions from all portfolio properties. Portfolio occupancy stood at 95.7% (-2.5ppt) with WALE of 2.1 years. Aggregate leverage stood at 36.4% with average debt cost of 2.3%. NAV/unit of $1.24.

*Cache Logistics Trust: 1Q15 results in line. DPU was flat (+0.3% y/y) at 2.15¢, while distributable income inched 0.9% to $16.8m. Gross revenue climbed 1.6% to $21m, while NPI remained flat (+0.6%) to $19.7m, driven by the build-in rental escalation within the portfolio’s lease and contribution from Australian properties, offset by vacancies and higher property maintenance expenses and lease commissions. Occupancy stood at 99.1% with WALE of 4.5 years. Aggregate leverage stood at 36.6% with average debt cost of 2.8%. NAV/unit of $0.98.

*Frasers Centrepoint Trust: 2QFY15 results above expectations. DPU climbed 2.9% y/y to 2.96¢, yielding 5.6% annualized yield. Gross revenue rose 15.9% to $47.5m on new contribution from Changi City Point and organic growth from other malls, except Bedok Point. Despite challenging retail environment, rental reversion is +3.8% and portfolio occupancy improved 0.7pp q/q to 97.1%. WALE stands at 1.62 years. NPI and distributable income each increased 14.4% and 14.1% but DPU was diluted by new units. Leverage was pared down 0.7ppt from the previous year to 28.6%, while average debt cost rose from 2.51% to 2.79%. NAV/unit of $1.86.

*Viva Industrial Trust: 1QFY15 DPU grew 8.6% y/y to 1.87¢, translating to an 9.2% annualized yield. Gross revenue gained 20.8% to $18.1m and NPI jumped 25.8% to $12.4m, beating its own IPO forecasts by 22.0% and 27.6% respectively. Strong performance came from higher-than-expected rent at UE BizHub EAST and new contribution from Jackson Square and Jackson Design Hub acquired in November 2014, offset by lower-than-expected revenue at Technopark@Chai Chee ahead of AEI. Leverage is high at 43.4% though 85.7% is fixed, borrowing costs increased marginally to 3.83%, debt to maturity stands at 2.5 years. NAV/unit of $0.77.

*Creative Technology: 3QFY15 net loss widened to US$11.7m versus US$8.8m from the previous year. Revenue fell 9% to US$22.7m due to the uncertain and difficult market conditions which continued to affect the sales of the group's products. Gross margin rose 7ppt to 29% due to the sales mix. Bottom-line was further weighed by other losses of US$4.7m versus gains of US$0.6m, largely as a result of FX losses. NAV/share of US$1.50.

*Genting Singapore: Read through on MBS performance from Las Vegas Sands 1Q15 results. MBS - reported adjusted 1Q15 EBITDA of US$415.3m (-4.6%), with total gross revenue coming in at US$748.8m (-6.1%)

*Noble: Has been barred from taking part in reporting agency, Platt’s, oil pricing process. When contacted, Noble would not comment on its specific involvement in Platts’ pricing process.

*Cosco: 51% subsidiary COSCO Shipyard has secured a FPSO conversion contract worth ~ US$95m from MODEC Offshore Production Systems. Delivery is expected in 4Q16.