SG Market (18 Aug 17)

MARKET OVERVIEW
- Stocks could come under pressure after the STI breached its 50-dma support yesterday, while sentiment could be further rattled by the US selloff on Trump policy worries.
- Technically, next support for STI is at at 3,190, with former support-turned-resistance at 3,275.

CORPORATE RESULTS
*Croesus Retail Trust
- 4QFY17 DPU of 2.01¢ (+18.2%) brought FY17 payout to 7.66¢ (+12.2%), above expectations.
- Gross revenue jumped 11.9% to ¥2,993m, bolstered by three acquisitions, as well as higher variable rent from better tenant sales in Mallage Shobu and a strong performance by the cinema in Torius.
- But NPI was relatively flat at ¥1,441m (+0.1%) from higher expenses in new acquisitions and refurbishment works.
- Distributable income of ¥1,272m (+19%) was boosted by cost savings from the internalisation of the trustee-manager, lower finance cost and disposal gain of units.
- Portfolio occupancy slipped 0.6ppt q/q to 97.1%, while aggregate leverage contracted 1.5ppt q/q to 44.6%.
- Offers 6.7% yield with NAV/unit at $0.98.

POSITIVE NEWS
*SGX
- Formed a committee with Singapore Institute of Surveyors and Valuers, to review valuation practices and reporting carried out by real estate valuers.
- This is to better serve investor interest, particularly in REITs and business trusts following some questionable transactions.
- SGX trades at 21.8x forward P/E.

*China Everbright Water
- Clinched two waste water treatment upgrading projects in Shandong, China, worth Rmb41m.
- The first project is a Rmb27m treatment project in the Binzhou Development Zone, while the second is for CNY14m upgrading works at Ju County Chengbei.
- Counter is trading at 12.5x forward P/E.

*GCCP Resources
- Secured RM16m worth of contracts to supply crushed calcium carbonate stones to a MNC in Malaysia and Indonesia.
- The contracts will run till end-2017 and expected to contribute positively to FY17 financials.
- This brought new contracts secured-to-date to more than RM31m.

*Aspen
- The group awarded a RM442m contract to Kerjaya Prospek to construct Vertu Resort in Aspen Vision City, Batu Kawan, Penang, Malaysia.
- Vertu Resort comprises five condominium blocks with a total of 1,246 units, which will be built on top of an eight-storey car park podium.
- The project is expected to commence on 4 Sep '17 and be completed within 38 months.

NEUTRAL NEWS
*Sembcorp Industries
- Subscribed to rights issue by subsidiary Sembcorp Green Infra, including excess rights of partner IDFC Private Fund III, for Rp1b ($21.4m), thereby raising its stake from 68.74% to 72%.
- Proceeds will be used to fund its growth in the renewable sector in India.

*OCBC
- Acquired 0.68m shares in Great Eastern for $24.90 apiece on 17 Aug.
- This raised its stake in its insurance arm to 87.9% from 87.75%.

*Best World
- Controlling shareholders Dora Tan and Doreen Tan both acquired 200,000 shares each at an average $1.195 and $1.18875, respectively, on 17 Aug.
- This lifted direct interests for both shareholders from 5.6113% to 5.6476%, and total interest between the two shareholders from 40.6887% to 40.725%.

NEGATIVE NEWS
*Profit warnings
- Tiong Woon
- CFM Holdings
- Boldtek