- The local market could continue to hum along with the global rally, while sustained crude prices and optimism over a revival of new orders is triggering a raft of re-rating in offshore marine stocks.
- 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.
- 4Q17 net profit of $31m (-2.5%) brought FY17 earnings to $132.5m (-11.5%), in line with estimates.
- Operating revenue dipped 2.1% to $307.2m on weak handset sales but service revenue improved 7% from increased post-paid mobile customers and fixed services turnover.
- Competition is expected to intensify this year with anticipated entry of new telecom operators.
- Declared a higher final DPS of 6.2¢ (4Q16: 5.9¢), taking full year payout to 11.4¢ (FY16: 12.9¢).
- Trades at 14.7x FY18e P/E.
- MKE maintains Sell with TP of $1.63.
*CapitaLand Mall Trust
- 4Q17 DPU of 2.9¢ (+0.7%) brought FY17 payout to 11.16¢, meeting estimates.
- Quarter revenue inched up 1.8% to $172.4m while NPI rose 2.6% to $119.3m on higher occupancy for Bugis Junction and The Atrium@Orchard, albeit dented by lower rentals at Bedok Mall.
- FY17 shopper traffic dipped 0.3% (9M17: +0.2%), while tenant sales was flat.
- Portfolio occupancy inched up 0.2ppt q/q to 99.2%, while aggregate leverage lowered to 34.2% (-0.5ppt q/q).
- Trades at annualised 4Q yield of 5.7% and 1.05x P/B.
*Frasers Centrepoint Trust (FCT)
- 1QFY18 DPU of 3¢ (+3.8%) was in line.
- Revenue and NPI jumped 8.7% and 7.7% to $47.9m and $34.5m, respectively, on higher contributions from Northpoint City North Wing (post AEI), Causeway Point and Changi City Point.
- Occupancy climbed to 92.6% (+0.6ppt q/q), while rental reversion moderated from +8.3% to +1%.
- Aggregate leverage held steady at 29.4% (+0.4ppt q/q).
- Within retail REIT space, MKE perfers FCT for its visible growth drivers and potential acquisition catalysts.
- Trades at an annualised 1Q yield of 5.2% and 1.1x P/B.
- MKE has a Buy with revised TP of $2.55.
- 4QFY17 DPU of 2.604¢ (+0.3%) met expectations, and was supported by higher capital distribution (+19.7%).
- This brought FY17 payout of 10.01¢ (flat) in line with estimates.
- Gross revenue and NPI slipped to $87.3m (-1.8%) and $59.4m (-2.2%), respectively, due to lower contribution from Suntec Singapore convention centre and the office segment.
- Office committed occupancy rose 0.7ppt q/q to 99.7%, while retail occupancy held steady at 98.8%.
- Aggregate leverage eased 0.4ppt q/q to 36.4%.
- Trades at 4Q annualised yield of 4.8% and 1x P/B.
*Mapletree Industrial Trust
- 3QFY18 DPU of 2.88¢ (+1.8%) took 9MFY18 payout to 8.8¢ (+3.4%) or 74% of full year consensus estimate.
- For the quarter, revenue and NPI jumped to $91.5m (+8.3%) and $70.9m (+11.7%), driven by its build-to-suit project for HP Singapore although portfolio occupancy was lower.
- Average passing monthly rents of Singapore properties inched 1.5% higher to $1.97 psf.
- Portfolio occupancy was steady at 90.5% (+0.1ppt q/q), while aggregate leverage expanded 3.8ppt q/q to 33.8%.
- Last traded at an annualised 3Q yield of 5.6% and 1.46x P/B.
- 4Q17 DPU slipped 3.4% to 1.43¢, weighed by reduced rental support and higher borrowing cost.
- This took FY17 DPU to 5.70¢ (-10.5%), at the lower end of street estimates.
- Quarter rental revenue inched 1.3% higher to $38.6m from increased contributions from Bugis Junction (+4.7%), Ocean Financial Centre (13.9%) and 8 Exhibition Street (+12.3%).
- NPI surged 15.3% to $36.2m on a lower property tax (-13.1%).
- Portfolio occupancy ticked up 0.1ppt q/q to 99.7%, while aggregate leverage eased to 38.7% (+0.1ppt q/q).
- Trades at 4Q17 annualised yield of 4.3% and 0.94x P/B.
- FY17 DPU of HK$0.5078 (+3.1%) came in line with estimates, in tandem with a 3.8% increase in distributable income to HK$970.8m.
- Revenue grew 2.8% to HK$2.03b on a positive 12.8% rental reversion, while NPI climbed 3.3% to HK$1.46b on lower electricity consumption.
- Portfolio occupancy expanded to 98.1% (1H17: 96.6%), while aggregate leverage slipped to 27.4% (1H17: 28.4%).
- Trades at 5.2% FY17 yield and 0.7x P/B.
*Frasers Commercial Trust
- Private placement of 55.6m new units at $1.48 each, priced at the top end of its $1.44-$1.48 range.
- The placement was over five times subscribed.
- Net proceeds of $98.5m will be used to partially fund the proposed acquisition of a 50% interest in Farnborough Business Park in UK.
- At $1.55, the REIT trades at an annualised 1Q yield of 6.2% and 1x P/B.
- Assigned as the exclusive distributor for MILS International's proprietary diagnostic tests in 11 countries, including Singapore, India, Indonesia, Malaysia, the Philippines, Korea, Taiwan, Thailand, Vietnam, Australia and Hong Kong.
- The distributor rights is valid for two years.
- Tests are able to provide health reports to guide individuals to take preventive measures and address lifestyle disorders.
- MILS is an institution of research and medical examination headquartered in Japan, and focuses on diagnosing metabolic diseases in the early stages.
*China Everbright Water
- Received a provincial government subsidy of Rmb41.1m for its Zhenjiang Sponge City Public-Private Partnership project.
- The project commenced in 2016 with a total investment cost of Rmb2.585b, of which Rmb1.2b is subsidized by the Chinese government and remaining Rmb1.385b from a JV with Zhenjiang Waterworks Corp.
- All construction works of the project are expected to complete this year.
- Last traded at 14.1x forward P/E.
*China Kunda Technology
- Expected to report a significant jump in 3QFY18 net profit due to higher-than-expected disposal income of automobile moulds.
- 3QFY18 results to be announced before 14 Feb '18.
*KSH/ Oxley/ Lian Beng/ Heeton
- The consortium will subscribe to a 72.5% stake in Hebei Yue Zhi Real Estate Development, to kickstart its land in Gaobeidian, Hebei.
- The remaining 27.5% will be held by Beijing Jia Hua Hong Yuan Investment (22.5%) and Gaobeidian City Lei Hua Yi Wei Sport Development (5%).
- Within the 72.5% stake, KSH has the majority 22.5%, with the remaining 50% owned by a JV between Oxley (55%), Lian Beng (20%), Heeton (15%) and an undisclosed party.
- Entered into 50:50 JV with Lee Kim Tah Group to acquire a freehold office property in London at 5 Chancery Lane for £80.8m.
- The office building has 84.836 sf of office and ancillary facilities across eight storeys and is located in a central and tradition office location.
- The property is fully leased until 2023 and produces annual rental income of £4m, or £47.2 psf, reflecting an initial gross yield of 4.95%.
- Last traded at 14.6x trailing P/E.
- Proposed placement of 16m new shares (13.1% existing share capital) at $0.24 apiece to seven subscribers.
- Net proceeds of $3.8m will be used for working capital.
- Issued 1.35m new shares in relation to a warrant exercise at US$1.09 each.
- 14.6m outstanding warrants remains, which expires on 29 Jan 2018.