Wednesday, June 20, 2018

SG Market (20 Jun 18)

- Heightened US-China trade tensions and rising interest rates will continue to dampen risk appetite although market is still sceptical that this spat will develop into a full-blown trade war. The negative sentiment also weakened commodities markets from steel to soybeans.
- Technically, the STI could stage a technical rebound though the bearish trend looks set to persist in the near-term with immediate support at 3,280 and resistance at 3,340.

*Genting S'pore
- Japan's Lower House has passed the much-awaited casino Bill, which would pave the way for the setting up of integrated resorts in up to three cities across the country.
- This could create the world's second largest gaming market after Macau, with projected revenue of US$16b and has attracted a slew of leading casino giants raring to place their bets on Japan's 5m gambling addicts and 30m foreign tourists.
- The bill will now go before the Upper Chamber for debate in the current Diet session.
- Trades at forward EV/EBITDA of 9.5x.
- MKE has a Buy with TP of SGD1.47.

*iX Biopharma
- Australian regulatory authority has approved its WAFESIL (formerly PheoniX) treatment.
- The proprietary drug, which treats male erectile dysfunction is the group's first pharmaceutical product utilising WaferiX to receive approval and registration.
- WAFESIL will be supplied to the market via wholesaler and pharmacy channels.
- To-date, the group has successfully obtained 15 product listings on the Australian Register of Therapeutic Goods with 8 and 7 listings for domestic and export sales respectively.
- Trades at 4.1x P/B.

- Portfolio company Arcuro Medical has received FDA clearance for its SuperBall meniscus repair system.
- Arcuro was recently granted a patent in the US and is currently awaiting patent results from China, Israel, and Europe.
- The FDA clearance and patent will allow the company to commence clinical evaluation phase immediately.
- Trades at 0.55x P/B.

*Tiong Seng
- Awarded $28.9m contract from 42%-owned JV to construct a 80-unit condominium at former Sloane Court hotel site, including temporary showflat and sales gallery.
- The proposed development comprises 12 storey and 3-storey residential blocks with basement car park, swimming pool, sky terrace and communal facilities.
- Trades at 5.5 trailing P/E.

*Boustead Projects
- Completed the sale of 25 Changi North Rise at original sale price of $10.5m.
- Based on the NAV of $4.5m, the disposal gain is estimated to be $6m.
- Trades at 1.0x P/B

*ParkwayLife REIT
- Updated that eight properties in Osaka (out of 46 in Japan) were structurally unaffected by the recent earthquake.
- There is no disruption to its operations.
- Trades at an annualised 1Q yield of 4.9% and 1.5x P/B.

*ST Engineering
- Completed set-up of 49% JVCo Jet-Talk alongside SatixFy UK Ltd, with a capital injection of US$10m.
- Through Jet-Talk, the group seeks to enhance its global access to emerging high growth commercial aviation connectivity market.
- Trades at 19x forward P/E.

- Korean star Bae Donna, who is represented by the group's 41.3% associate company, will be featured as the lead actress in Netflix's KINGDOM.
- The six-episode drama is slated to air on Netflix in Dec '18.
- Trades at 7.4x forward P/E.

- Presenting "WALKING WITH DINOSAURS - The Arena Spectacular" in an Asia Tour, comprising 117 shows across 11 cities.
- The tour is expected to commence in 2H19.
- Trades at 52x trailing P/E

- Mutually ceased the acquisition of 50% stake in PT Bintan Lagoon Resort with seller.
- Deposit of $4.1m has been refunded.
- Trades at 28.2x trailing P/E.

*Addvalue Tech
- Terminated the placement agreement with KGI Securities for issue of up to 250m new shares at $0.04 apiece.
- Separately, the group is working with a couple of strategic investors for alternative funding arrangements, including such investors taking up of a significant stake in the group.
- Trades at 4.7x P/B.

- Granted a 6-month lifeline by High Court to stave off creditors and work out a survival plan.
- The debt-laden water project firm is seeking $200m in rescue financing and in talks for possible sale of its loss-making $1.3b Tuaspring Integrated Water & Power Project.
- Shares remain suspended.

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