Retail sales: Singapore’s retail sales grew 7.5% y/y to $4.1b in Jan, propped up by a surge in car purchases and consumers hitting the shops before the Chinese New Year festivities.
- Department stores (+11.9%) and supermarkets (+7.9%) appeared to have done well in Jan. Notable retail counters that have exposure to these two sub-sectors include Sheng Siong, Dairy Farm and Metro
- On the other hand, restaurants (-2.4%), jewellery (-8.4%) and telecoms shops (-30.5%) continue to struggle. Affected listcos include Japan Foods, Soup Restaurant, Hour Glass, Aspial Corp, Soo Kee, Challenger Technologies
- Overall, the retail REIT subsector could continue to see rents fall.
At last update, Maybank-KE has the following ratings for retail REITs:
CMT (Sell, TP: $1.66)
MCT (Sell, TP: $1.18)
FCT (Sell, TP: $1.63)
SG REIT (Hold, TP: $0.75)