Monday, December 4, 2017

SG Market (04 Nov 17)

- Investors may start the week on a cautious note on fresh US political concerns, after ex-national security adviser is reported to testify that President Trump has directed him to make contact with Russians during the 2016 election campaign.
- Technically, STI sees underlying support at 3,390, with topside resistance at 3,460.

- Enbloc wave continues following the purchase of two separate freehold sites in Bukit Timah by Allgreen Properties.
- Both collective sale tenders at Royalville and Crystal Tower were competitive, sold at $477.4m ($1,960 psf ppr) and $180.7m ($1,840 psf ppr), respectively.
- MKE maintains positive on the property developers and reiterates UOL (TP: $9.80) as its top pick, along with City Dev (TP: $13.60) and GuocoLand (TP: $2.90).

- 19 IPOs in the first 11 months this year have raised $4.6b, twice the amount in 2016.
- The listings added $8.3b in market cap to the bourse, compared to the 16 firms that added $4.4b last year.
- SGX last traded at 21.7x forward P/E, an attractive 54% discount to peer HK Exchanges & Clearing.

- Acquiring a freehold commercial and retail building in Melbourne CBD for A$33m.
- The six-storey property with net lettable area of 4,504 sqm will be redeveloped into a mixed-use development comprising hotel and retail units.
- Last traded at 18.6x trailing P/E and 1.27x P/B.

*Boustead Projects
- Clinched a contract from Ballore Logistics Singapore for the design and build of a five-storey ramp-up eco-sustainable logistics facility in Singapore.
- Construction for the new building is expected to complete in 2019.
- This marks the fourth logistics project secured in FY3/18 and raises order book to $300m from $242m on 27 Nov '17.
- Trades at 7.8x forward P/E.

- Secured contracts worth an aggregate NOK700m for the design and construction of seven stern trawlers.
- Delivery for the vessels scheduled between 1Q19 and 4Q19.
- Counter is loss-making and trades at 0.83x P/B.

*Thai Beverage
- Completed the acquisition of 252 KFC stores in Thailand, as well as the properties and assets used for operations for Bt11.4b.
- The acquisition is part of the group's strategy to expand into food business.
- Last traded at 20.4x forward P/E.

*Sing Post
- Introduced higher rates for international small packets delivery services.
- The increase will come into effect in 2018 and is due to higher rates charged by the UN agency that sets the rules for international mail exchanges among its 192 member countries.
- The new rates reflect rising volumes of e-commerce packets and the higher cost of delivery.
- Last traded at 25.6x forward P/E.

*G. K. Goh
- Interest in associate Habitat Assets has been diluted to 36.09% from 37.66%, as the latter issued 4.8m new redeemable preference shares to a third party for A$4.8m.
- Trades at 8.5x trailing P/E and 0.86x P/B.

*Soilbuild REIT
- Received claim on insurance guarantee amounting to $1.7m, equivalent to around four months' rent from a tenant NK Ingredients.

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