- Likely to see further profit-taking as sentiment is spooked by talk of a potential trade war between US and China and mixed signals on the direction for USD.
- O&G names are likely to also see pressure after bellwether Keppel Corp reported worse-than-expected 4Q results.
- Technically, underlying support for the STI lies at 3,510, with topside resistance at 3,640.
- 4Q17 swung into a net loss of $492.8m (4Q16: $143.1m profit), hurt by a $618.7m financial penalty and related costs, which dragged FY17 earnings to $216.7m (-72%).
- Excluding the one-off charge, net profit of $835.4m (+7%) came in 5% below consensus estimate.
- In 4Q, O&M bled $217m loss after booking additional provision for Sete Brasil projects ($81m) and asset impairment ($54m).
- Order book still weak at $3.9b.
- Property was biggest earner at $287m, mainly boosted by fair value gains ($178m).
- Higher final DPS of 14¢ (4Q16: 12¢) brought full year payout to 22¢ (FY16: 20¢).
- Trades at 16.3x forward P/E.
- 3QFY18 DPU dipped 0.6% to 3.97¢ due to a one-off property tax refund last year and larger unit base.
- This brought 9MFY18 payout to 12.078¢ (+1.6%), meeting estimates.
- For the quarter, gross revenue and NPI rose 4.1% and 1.7% to $217.3m and $157.6m, from newly acquired in Singapore and Australia.
- Overall portfolio occupancy declined 1.8ppt q/q to 90.2%, while rental reversion was up 3.1%.
- Aggregate leverage climbed 2.1ppt q/q to 35.2%.
- Trades at annualised 3QFY18 yield of 5.8% and 1.33x P/B.
- MKE keeps Buy with TP of $3.05.
- 4Q17 DPU of 3.38¢ (+10.6%) was boosted by divestment gain of 0.23¢, lifting FY17 payout to 13.35¢ (+10.2%), in line with estimates.
- For the quarter, gross revenue (-0.2%) and NPI (+0.2%) of $27.5m and $25.7m, respectively, were relatively flat as JPY depreciation was offset by higher rents received from SG properties.
- Aggregate leverage was stable at 36.4% (-0.9ppt q/q).
- Trades at annualised 4Q yield of 5.1% and 1.69x P/B.
*Mapletree Greater China Commercial Trust
- 3QFY18 DPU climbed 5.1% to 1.868¢, due to lower finance costs (-8.9%).
- This brought 9MFY18 payout to 5.582¢ (+3.6%) or 75% of FY18 street expectations.
- Quarter gross revenue edged higher by 0.7% from higher rental rates at all three properties, as well as stronger HKD and CNY against SGD.
- NPI, however, stagnated at $71.4m due to higher property expenses (+3.8%) associated mainly with Festival Walk in Hong Kong.
- Portfolio occupancy fell 1.3ppt q/q to 96.9%, while aggregate leverage edged higher to 39.3% (+0.8ppt q/q).
- Last traded at annualised 3Q yield of 5.9% and 1.03x P/B.
*Frasers Logistics & Industrial Trust
- 1QFY18 results came slightly below expectations, as DPU climbed 3.4% to 1.80¢.
- Revenue and adjusted NPI grew to A$42.4m (+7%) and A$33.4m (+9%), lifted by several properties acquired since Nov '16, and two development properties in Australia achieving practical completion in Oct-Nov '17.
- Portfolio occupancy was stable at 99.4%, while aggregate leverage rose 1.6ppt q/q to 30.9%.
- Trading at annualised 1QFY18 yield of 6.2% and 1.27x P/B.
*Viva Industrial Trust
- 4Q17 DPU rose 5.5% to 1.857¢ and lifted FY17 payout to 7.472¢ (+7.4%), meeting estimate.
- Quarter's revenue and NPI jumped to $28.3m (+11%) and $20.6m (+14%) respectively, largely boosted by 6 Chin Bee Avenue, a warehouse acquired in Jan '17, as well as higher contribution from crown jewel Viva Business Park.
- Portfolio occupancy dipped 0.3ppt q/q to 90.6%, while aggregate leverage ticked up 0.2ppt to 39.8%.
- Trading at annualised 4Q yield of 7.9% and 1.23x P/B.
*CDL Hospitality Trusts
- Post-rights 4Q17 DPS of 2.83 (-5.7%) met expectations.
- Revenue jumped 14.3% to $55.2m on new contributions from recently-acquired The Lowry Hotel in UK and Pullman Hotel Munich in Germany.
- NPI grew at a slower 7.8% to $40.6m on higher expenses at its Japan, New Zealand properties, as well as negative contribution from the Dhevanafushi Maldives Luxury Resort.
- Notably, domestic RevPAR improved 1.1% to $155 despite strong supply.
- Aggregate leverage fell to 32.6% (-0.7ppt).
- Trades at annualised 4Q DPS of 6.2% and 1.19x P/B.
*Ascott Residence Trust
- 4Q17 DPU was flat at 2.04¢ despite the enlarged unitbase (+30%) post-rights, as distributable income of $43.9m (+30%) was boosted by partial distributions of divestment gains.
- This brought FY17 DPU to 7.09¢ (-12%), meeting estimates.
- For the quarter, revenue and gross profit both grew 6% to $134.5m and $61.8m, respectively, lifted by inorganic growth from the New York hotel and two German serviced residences.
- Portfolio RevPAU increased 5% to $155.
- However, aggregate leverage jumped to 34.5% (+2.6ppt q/q).
- Trading at an annualised 4Q yield of 6.5% and 1x P/B.
- 4Q17 DPU lowered 5.7% to 0.83¢ due to an enlarged unit base (+24.5%) and cash payment of management fees.
- Gross revenue slid 9.5% to $20.4m due to absence of income from properties located at 1 Tuas Avenue 4 and 6 Woodlands Loop and weaker contribution from five properties.
- NPI saw a smaller decline to $13.7m (-1.3%) from a net reversal of impairment losses and lower property expenses.
- Portfolio occupancy slipped 3ppt q/q to 85.4%, while aggregate leverage rose to 38.2% (+2.2ppt q/q).
- Trades at annualised 4Q yield of 8% and 0.77x P/B.
- Awarded $40m worth of new engineering and construction projects for local and overseas petrochemical clients.
- Projects are expected to be completed by end-2018.
- Trades at 10.9x trailing P/E.
- Warned of a net loss for FY17 due to lower sales from the piping and heat exchanger segments, and a loss on liquidation of $1m upon winding up of 72.5%-owned Heatec Chariot Envirobotics.
- Substantial shareholder China Everbright acquired 153.4m shares on 23 Jan via a married deal at $0.135 apiece.
- This lifted its stake from 22.92% to 28.92% and will remain as the second largest shareholder.
- The counter trades at 0.54x P/B.
- Controlling shareholder Tamaris Infrastructure acquired 200m shares on 25 Jan at $0.10 apiece from second largest shareholder Moya Holding Co.
- This raised Tamaris' stake from 61.8% to 68.9%, while Moya Holding Co was reduced from 17.4% to 10.21%.
- Trades at 32.2x trailing P/E.
- Rented out its industrial building at 6 Kim Chuan Drive for 5 years from Jan '18, and will receive rental income for FY18.
- Engaged Ernst and Young Solutions LLP to conduct a strategic review on its newly-acquired hair and homecare chemical manufacturer Wayco manufacturing.
- Issued 1.4m new shares in relation to a warrant exercise at US$1.09 each.
- 11.1m outstanding warrants remains, which expires on 29 Jan 2018.