Monday, June 4, 2018

SG Market (04 Jun 18)

- Market sentiment is expected to remain fragile as trade war concerns may cast a shadow on risk appetite with US heading for a showdown at a G-7 summit and China warning that it will withdraw its trade commitments if US goes ahead with tariffs.
- Technically, the grossly oversold STI could find support near the 200-dma at 3,423, with next line of denfence at 3,340. Immediate resistance lies at 3,510.

*Perennial Real Estate
- Perennial International Health and Medical Hub in Chengdu, China, has commenced operations, with 90% committed occupancy.
- The one-stop medical, healthcare and retail integrated projects part of the Chengdu East HSR Integrated Development and spans over 280,000 sqm with more than half anchored by seven local and international medical tenants.
- To-date, all medical tenants have begun operations, except for Gleneagles Parkway Hospital which is anticipated to open in 2H18.
- Trades at 0.5x P/B.

- Acquiring a 127-bed student hostel in Manchester city centre for £18.7m, which will enlarge its UK accommodation portfolio to nine assets when completed in Jul '18.
- The property is a newly refurbished, 6-storey freehold building comprising studio and 1-bedroom apartments and two floors of commercial facilities.
- MKE estimates that this asset could raise its EPS by 2% and 4% in FY18 and FY19 respectively.
- Trades at 11.7x forward P/E and 0.85x P/B

*China Jinjiang
- Acquiring a 95% stake in PT Indo Green Power (IGP), which has secured a 30-year concession to build, own and operate a 1.000 tpa waste-to-energy (WTE) facility in Palembang, Indonesia.
- IGP will be paid a tipping fee for providing waste treatment services and an electricity tariff payable by the local authority for electricity generated.
- The total investment for the Palembang project is estimated at US$120m, which will be funded through internal resources, bank borrowings and future equity or debt fund raising.
- The acquisition marks another major step in the group's overseas expansion and will strengthen its footprint in the Southeast Asian WTE market.
- Trades at 5x P/E and 0.64x P/B.

*JEP Holdings
- Appointed Andy Luong as its Acting CEO to lead the company through its next phase of innovation to spur growth.
- Its new 200,000 sf SMART factory at Seletar Aerospace Park, which was equipped with new robotics and automation technologies will allow the group to stay competitive as well as broaden its range of product and service offerings.
- Going forward, it will also focus on growing the aerospace business as the global manufacturing market is expected to achieve a 5-year CAGR of 65.8% to reach US$2.82b revenue by 2020.
- Trades at 1.5x P/B

*Interra Resources
- Commenced drilling development of well CHK 1208 in the Chauk Oil field in Myanmar.
- CHK 1208 will be the fourth well to by drilled by Goldpetrol, the group's JV entity, in Myanmar in 2018.
- The group estimates that results of the drilling should be available within approximately six weeks.
- Trades at 1x P/B.

- Formed a 50:50 JV MindChamps-First Capital PreSchool China Capital Management (MFCPCCM) in the Cayman Islands.
- MFCPCCM is intended to be the general partner of the China PreSchool Fund, which will be funded through its internal resources.
- Trades at 22x forward P/E.

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