Tuesday, July 21, 2015

SG Market (21 Jul 15)

The Singapore market is expected to remain range bound, following the marginal gains overnight in Wall Street.

Regional bourses are all positive today, with Tokyo (+0.42%), Seoul (+0.67) and ASX (0.21%).

From a chart perspective, the STI has reclaimed ground above the key 200-dma at 3,360, with next resistance at 3,400. But technical indicators are approaching overbought levels, suggesting that the market may be due for a short term pullback and consolidation.

Stocks to watch:
*M1: 2Q15 net profit inched 1% y/y to $44.3m, as revenue jumped 15.5% to $276.8m due to a surge in handset sales (+136.7%), but partly offset by a fall in total service revenue (-2.3%) from lower retail traffic for its international call services segment. Postpaid ARPU slipped 0.3% to $62.1 (+0.2% q/q), while data usage grew to 2.9GB/month (+0.1GB). EBITDA margin grew 1.2% to 41%. Interim DPS of 0.7¢ maintained.

*Keppel REIT: 2Q15 results below estimates, distributable income grew 3% y/y to $54.8m, while DPU slumped 9.5% to 1.72¢ (+1.2% q/q), due to an enlarged unit base following an issuance of new units to fund the acquisition of MBFC Tower 3 in 4Q14. Property income fell 9.3% to $43.0m (+1.3%), while NPI dropped 11.4% to $34.7m (+0.3%), weighed by the absence of income from the divested Prudential Tower, as well as lack of rental support from MBFC Phase One and 87.5%-owned OFC. Portfolio occupancy stood at 99.3% with WALE of 6 years, while aggregate leverage grew 0.2ppt q/q to 42.6%. NAV/unit at $1.38.

*Frasers Commercial Trust: 3QFY15 results below expectations, despite DPU up 7.3% y/y to 2.35¢ (-1.3% q/q), representing an annualized yield of 6.1%. Gross revenue grew 17% to $34.7m (-0.3%), while NPI rose 6.1% to $24.3m (-1.6%), boosted by higher contribution from Alexandra Technopark, China Square Central and 55 Market Street due to higher occupancies and rental reversion, but partially offset by the weakening AUD and lower occupancy for Central Park. Overall occupancy rate slid 1.4 ppt to 95.1% with WALE of 3.4 years. Aggregate leverage was 37.3% with all-in borrowing cost of 3.0%. NAV/unit of $1.54.

*Mapletree Logistics Trust: 1QFY16 in line, distributable income slipped 2% y/y to $45.8m, while DPU fell 3% to 1.85¢. Meanwhile, gross revenue and NPI grew 5% and 3% to $85.1m and $71.1m, respectively, boosted by contribution from new acquisitions and a 5% upward reversion for properties in HK and Singapore. However, this was partly offset by i) lower occupancy at several recently converted multi-tenanted buildings (to single-tenanted), ii) absence of revenue from 5B Toh Guan Road East due to an ongoing redevelopment, as well as iii) a weaker JPY. Subsequently, portfolio occupancy slipped 0.1ppt q/q to 96.6%, with WALE of 4.1 years. Aggregate leverage stood at 34.4% at end 1QFY16, but is expected to climb to 38.2% upon completion of two ongoing acquisitions. NAV/unit at $1.01.

*Cache Logistics Trust: 2Q15 distributable income inched 0.3% higher to $16.8m, while DPU was shaved 0.3% y/y to 2.14¢, due to consideration units issued to manager. Revenue climbed 3.7% higher to $21.6m, while NPI fell 5.4% to 18.5m, from higher property expenses as three buildings were converted from single-tenanted to multi-tenanted in a soft rental market, leading to a slight increase in vacancy. Occupancy stood at 98.3% (-0.8ppt q/q) with WALE of 4.5 years. Aggregate leverage stood at 38% with average all-in financing cost of 3.11% and debt maturity of 3.5 years. NAV/unit at $0.973

*First REIT: 2Q15 DPU rose 3.5% y/y to 2.07¢, while distributable income jumped 7.2% to $15.4m. This came on the back of a 8.5% and 8.3% growth in gross revenue and NPI to $24.9m and $24.6m, respectively, due to contribution from newly acquired Siloam Sriwijaya in Indonesia, as well as other Singapore and Indonesia properties. Portfolio committed occupancy stood at 100% with WALE of 10.8 years, while aggregate leverage stood at 32.9%. NAV/unit at $1.019.

*GLP: Secured new lease agreements in US totalling 44,000 sqm (475,000 sf) with a leading global retailer.

*ST Engineering: Disclosed that its electronics arm has secured $424m worth of contracts in 2Q15, a 26.9% drop from 2Q14.

*HLH Group: To purchase US$2.2m worth of cassava starch processing equipment in Cambodia, which will be used to set up a new production line. The facility is expected to be operational by next quarter, with 120 tons/day production to be exported for sale.

*Sinarmas: Acquired freehold property in London, known as Alpha Beta Building at Finsbury Square, for £258.7m ($551.3m). The completely refurbished eight-storey office building has a net leasable area of 243,850 sf and is intended to strengthen its foothold in London.

*Nordic Group: Awarded four contracts totalling $3.3m. Works include the provision of labour and materials to perform scaffolding and insulation works, and to supply hydraulic and pneumatic valve control system to a semi-submersible light workover unit.

*Stratech: Obtained in-principle approval to be removed from SGX Watch-List.

*Hiap Hoe: Putting on hold its proposed spin-off and listing of property business in Australia, due to various factors including current market conditions.

*AEI: Expects operating loss for 2Q15 due to lower sales as the worldwide demand from the HDD markets has weakened further and competition from overseas suppliers has become more intensified. The high raw material and operating cost contributed further to the loss. Further, a write down on inventory is made due to the softening aluminium price.

No comments:

Post a Comment