Tuesday, January 23, 2018

SG Market (23 Jan 18)

- Market sentiment is expected to stay buoyant as momentum continued to be supported up by the record-breaking runs in US and HK, as well as upwardly revised IMF global growth forecast.
- Technically, the STI has broken above the 3,550 resistance and is headed towards the next objective at 3,640. Underlying support now lies at 3,510.

*Mapletree Logistics Trust
- 3QFY18 results in line as DPU rose 2% to 1.907¢ despite an enlarged unit base (+22.3%).
- This brought 9MFY18 payout to 5.681¢ (+1.8%).
- Gross revenue grew 2.8% to $98.2m while NPI rose 3.9% to $83m, on higher contributions from existing HK and Australian properties, but was partially pared by absence of rentals from three divested assets and one of two blocks under development at Ouluo Logistic Centre.
- Portfolio occupancy expanded to 96.2% (+0.4ppt q/q), while aggregate leverage jumped 4.1ppt q/q to 37.8%.
- Trades at an annualised 3QFY18 yield of 5.7% and 1.29x P/B.

*Keppel DC REIT
- 4Q17 DPU of 1.75¢ (+33.6%) was boosted by a one-time capital distribution.
- This brought full-year DPU to 7.12¢, meeting forecast.
- Gross revenue of $36.8m (+37.2%) and NPI of $32.6m (+30.9%) were lifted by recent data centre acquisitions in Dublin, Milan, Cardiff and Singapore (90%), as well as higher variable income from KDC Singapore 1.
- Portfolio occupancy dipped 1.8ppt q/q to 92.6%, while aggregate leverage expanded 3.8ppt to 32.1%.
- Trades at 4.8% FY17 yield and 1.5x P/B.

*Frasers Commercial Trust
- 1QFY18 DPU slipped 4% to 2.4¢, in line with estimates.
- Revenue of 35.3m (-11%) and NPI of $26.7m (-15%) were weighed by lower occupancy rates for Alexandra Technopark, China Square Central, 55 Market Street and Central Park, and further impacted by a weaker AUD.
- Portfolio occupancy inched up 0.7ppt q/q to 86.6%, while aggregate leverage was stable at 34.8% (+0.1ppt q/q).
- Trades at annualised 1Q yield of 6.2% and 1x P/B.

*Keppel Infrastructure Trust
- Flat 4Q17 DPU of 0.93¢ brought FY17 DPU to 3.72¢ (unch), meeting expectations.
- Quarter's revenue edged 3.9% higher to $158.1m on stronger takings from City Gas (+8.4%) and Basslink (+10.1%) partially offset by weaker contributions from concessions (-3.6%) and Keppel Merlimau Cogen (-1.8%).
- Aggregate leverage stood at 39.9% (+0.2ppt q/q).
- Notably, NAV declined 1.6% to $0.299 due to distributions as well as marked-to-market valuations of derivative financial instruments.
- Trades at 6.4% FY17 yield and 1.96x P/B.

- Sold a 14.14% direct stake in data centre services provider CS Loxinfo for 654m baht ($27m).
- The sale was to 23.3% owned Thai associate Advanced Info Service following its tender offer in CS Loxinfo.
- Trades at 15x P/E and 4.8% indicative yield.

- Lifted FY17 net profit guidance from at least $32m to $35-$37m, due to higher sales, better product mix and operational efficiency.
- Results slated to be released 23 Feb.
- Further, group guided for FY18 revenue of at least $255m and $42m in operating profit.
- Counter is a core constituent of the Market Insight growth basket.
- Last traded at 9.1x forward P/E.

- Divesting its entire 30% interest in Nanchang Top Spring to H-Change Real Estate for Rmb627.7m.
- Nanchang Top Spring is the developer of Nanchang Fashion Mark, a mixed development comprising residential, office and retail components located at Hong Gu Tan CBD in Nanchang city in China.
- The divestment is expected to result in a divestment gain of $8.6m.
- Trades at 14.6x trailing P/E.

*Spackman Entertainment
- Top-tier Korean actress Son Ye-jin and rising star Wi Ha-jun, both represented by Spackman's associate, are set to star in a 16-episode Korean drama "Pretty Sister Who Buys Me Food".
- The drama with an undisclosed budget will be aired in Mar '18 and will mark the return of one of the highest paid actress to TV since 2013.
- Trades at 17x forward P/E.

*Lum Chang
- Awarded construction contract worth $136.9m by PSA.
- Project involves PSA Singapore's corporate headquarters and alternation works at the existing Pasir Panjang Terminal Building 3.
- Contract period is 26 months, bringing order book to $679.5m.
- Trades at 7.2x trailing P/E.

*Ley Choon
- Awarded $6m contract from PUB Singapore for the supply and laying of NEWater mains.
- Last traded at 2.8x trailing P/E.

- Proposed 50% stake acquisition of immigration service provider Fragomen Malaysia.
- Consideration will be equal to 50% of 1.03x of total billing revenue of Fragomen.
- Management believes that acquisition will enlarge its income base and complement its existing business.
- Last traded at 42.2x trailing P/E.

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