Wednesday, March 28, 2018

SG Market (28 Mar 18)

- The overnight sell off in the US tech sector could hit sentiment in SG tech-related manufacturers, spurring heavy downward pressure on profit-taking activities.
- Technically, the STI sees support at 3,400 and topside resistance at 3,485.

- Passenger traffic at Changi Airport for Feb rose 5.6% (Jan: +0.9%) to 4.93m, boosted by more travelling trips over the Chinese New Year holiday.
- Aircraft movements were 6% higher at 29,700 landings and take-offs, while cargo throughput inched up 1.4% to 148,930 tonnes.
- Strengthening traffic growth would be positive for aviation services providers SATS (Buy, TP $5.70) and SIA Engineering (Hold, TP $3.50).

*Sembcorp Marine
- Secured a contract from TechnipFMC for EPC of the hull and living quarters for a newbuild FPSO at an undisclosed sum.
- Scheduled for completion in 4Q20, the FPSO will be deployed at the Energean-operated Karish and Tanin deepwater field developments in the Eastern Mediterranean.
- Trades at a hefty 67x forward P/E and 1.86x P/B.

*Mapletree Greater China Commercial Trust
- Proposed acquisition of a 98.47% stake in a portfolio consisting six Japanese commercial properties for ¥60,926m ($753.4m), or NPI yield of 4.8%.
- The freehold assets are located across Tokyo, Chiba and Yokohama.
- The portfolio has a high occupancy rate of 99.9% and 5.8 years WALE.
- Pro forma FY17 DPU is expected to rise 3.6% to 7.602¢ post-acquisition.

- Acquired all units at Ampas Apartment for $95m via a collective sale.
- The deal is priced at $1,073 psf ppr, inclusive of the development charge, for the freehold property situated on a land area of 2,809.3 sqm.
- The property will be redeveloped, subject to regulatory approvals.
- Trades at 1.69x P/B.

*Aspial / World Class Global (WCG)
- WCG, 80% owned by Aspial, received net sales proceeds of A$69m for 134 residential units at its Melbourne development AVANT, accounting for 66% of the 203 units handed over to buyers in Feb '18.
- Settlement of about A$35.8m for the remaining 69 units in the first stage handover is expected to be realized over the next few weeks.
- With 97% of units at AVANT sold to date, the second stage handover of 241 units with revenue of A$151.6m is expected to be recognised in the next six months.
- WCG trades at 2.15x P/B.

- 50.01% owned vCargo Cloud (VCC) was awarded a contract by the Cambodian government to implement phase 2 of Cambodia's National Single Window following successful implementation of phase 1.
- VCC will create an electronic platform based on its trade facilitation platform, CamelONE, to connect traders with regulators, enabling timely and accurate statistics reporting, as well as digitalising documentation processes such as license and permit applications.

- Subsidiary Dalian Huicheng Aluminum (DLHC) provided an unauthorized guarantee for debts owed by an unrelated party Chongqing Huicheng Aluminum.
- The lender, which is a Chinese supplier of raw materials, has filed a civil complaint on 26 Feb '18 against the borrower and DLHC for Rmb28.7m as the loan fulfillment period has expired.
- Trading remains suspended for the counter.

*Lian Beng
- Lodged the preliminary offer document and applied to SGX for the proposed listing of SLB Development, the group's property development business.
- No details on the offer price, tranches, and timetable at this point.

- Disposing entire 45% stake in Secura Thailand, which is loss-making and has net tangible liability of Bt2.3m ($97,000), to Fidelium Thailand for $1.
- The purchaser is 75% owner by the group's former CEO Paul Lim Choon Wui.
- Trades at 0.71x P/B.

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