- The market may stay elevated following an upbeat appraisal of US economy and news that centrist Jerome Powell, seen as more accommodative to Trump's deregulation agenda, has been picked to become the next Fed chief.
- Technical indicators suggest the STI is overbought with topside resistance at 3,460 and underlying support at 3,320.
*OUE Hospitality Trust
- 3Q17 DPS climbed 10.6% to 1.36¢, meeting expectations.
- Revenue and NPI rose to $34m (+5.4%) and $29.5m (+3.8%) on higher master lease income from better RevPAR at Mandarin Orchard, additional room inventory at Crowne Plaza Changi Airport and improved occupancy at Mandarin Gallery.
- Aggregate leverage held steady at 38.1% (-0.1ppt q/q).
- But hotel industry remains competitive with new supply coming on stream, while retail scene is still facing headwinds as tenants are more cautious in renewing or committing to new leases.
- Trading at forward yield of 6.4% and 1.06x P/B.
*Far East Hospitality Trust
- 3QFY17 DPS fell 8% to 1.03¢, but was in line with estimates.
- Gross revenue and NPI slipped to $27.5m (-2%) and $24.8m (-2.3%) on lower master lease rental from hotels and serviced residences and softer performances of retail and office spaces.
- Hotel RevPAR edged up 0.4% to $143 on better occupancy rate of 89.4% (+1ppt y/y), but ADR slipped to $159 (-0.7%).
- Serviced residences RevPAR declined 3.4% to $196 on softer occupancy of 89% (-1ppt y/y) and lower ADR of $221 (-2.3%).
- Aggregate leverage contracted slightly to 32.1% (-0.7ppt q/q).
- Trading at 5.4% indicative yield and 0.8x P/B.
*Frasers Logistics & Industrial Trust
- 4QFY17 DPU of 1.77¢ beat expectations and came in 8.6% above IPO forecast on interest savings and stronger-than-expected AUD.
- Gross revenue and adjusted NPI of A$42.2m and A$32.3m was 4.8% and 4.7% better than forecast due to higher contribution from four completed properties and the recovery of an insurance claim.
- Portfolio occupancy held stable at 99.4% (+0.1ppt q/q), while aggregate leverage stood pat at 29.3%.
- Trading at FY17 yield of 8% and 1.2x P/B.
- 1QFY18 net profit soared 586% to $48.7m, uplifted by a $13.4m jump in associate/ JV contributions, arising from 20% owned Galliard Group and a Cambodian project.
- Revenue leapt 146% to $310.6m on progressive recognition of certain plots in The Royal Wharf Phase 1A in London, two mixed-residential projects in Singapore and rental income from investment properties.
- Total unbilled contract value amounted to $2.3b, comprising mainly of projects overseas (87%) as well as in Singapore (13%).
- Adopted a dividend policy of paying >25% core earnings for FY18 and FY19.
- Trades at 12x forward P/E and 1.92x P/B.
- Entered option agreement with Cathay Organisation to purchase its cinema operations in Singapore for $230m, or 13.8x FY16 EBITDA.
- The eight cinemas comprise 64 screens and 11,569 seats.
- The deal is in line with its strategy to expand downstream operations.
- Last traded at 25.2x forward P/E.
- 70% owned JBT F&B Management (Shanghai) established a new branch office in Shanghai, China, for the opening of the group's fifth Jumbo Seafood outlet in the mainland.
- Also the fourth outlet in Shanghai, it will be located at L'Avenue Mall in Hongqiao and slated to open in Dec '17.
- Last traded at 23.1x forward P/E.
- Portfolio company vCargo Cloud (VCC) is partnering IMDA to help SME freight forwarders and shippers to lower costs and boost productivity using an e-Cargo Consolidation Platform named CamelONE platform.
- The platform aims to serve as an aggregator for the logistics and supply chain.
- VCC and IMDA have signed MOIs with three firms to lead their SME clients through the digitalisation process via the platform.
- US biomedical subsidiary Global BioLife has completed the development and testing of mosquito deterring technologies, including fragrances and photonic paints & fabric with US-based Chemia Corporation.
- The group is further collaborating with Chemia to co-develop the fragrances named "3F" into laundry detergents, shampoos and lotions, while the photonic paints & fabrics will provide non-chemical means to repel mosquitoes.
- The two companies plan to license these 3F products globally.
- Lease of the 8,600-bed Tuas Lodge 1 will expire on 30 Jan '18, following the rejection by authorities for a lease extension.
- Trades at 8.8x forward P/E.
- 60% owned JVCo terminated its option to purchase two freehold sites at Jervois Road after its redevelopment plan for the remaining left-behind plots was not approved.
- Trades at 8x trailing P/E.
- Temporarily ceased its 70% owned Vietnamese operations after revenue expectations from projects were not achieved.
- Group will evaluate various options on the future direction of the Vietnamese operations and business plan.
- Last traded at 11.8x trailing P/E.
*Beng Kuang Marine
- Guided for a 3Q17 loss due to a significant drop in revenue and profit of the Infrastructure Engineering division and an unfavourable settlement of a major fabrication contract.
- Results slated to be announced on or before 14 Nov.
- Last traded at 0.14x P/B.
- Subsidiary Jurong Shipyard has disposed its 100% stake in Jurong Autoblast Services (JAS) to an undisclosed party for $0.4m.
- JAS provides surface preparation of steel plates and structures and marine engineering services.
- Trading at a hefty 64.8x forward P/E.
- Acquired a Panama-incorporated company, Fulgida Bulkship, for US$1m for the purpose of acquiring a second-hand bulk carrier.
- The vessel will be purchased by Fulgida from Glory Bulkship for US$13.5m, without any independent valuation conducted.
- Uni-Asia owns 45% stake of Glory Bulkship.
- Trades at 6.2x forward P/E.
- Proposing to diversify from its current structural steel business and dormitories operations to include waste management and treatment business.
- Last traded at 11.8x trailing P/E.
- 75:25 JVCo entered into a partnership with Pacific Vintage to develop townhouses in West Malaysia.
- Construction is expected to commence in 1Q18 with an estimated GDV of RM34m.