- The market may struggle as China's intent to bolster economic growth through a looser fiscal policy failed to lift sentiment amid the rumbling trade row, with recent corporate earnings showing little surprises thus far.
- Technically, the STI faces immediate resistance at 3,300 and 3,340 at the next level, while underlying support remains intact at 3,190-3,200.
*Mapletree Industrial Trust
- 1QFY19 DPU rose 2.7% to 3¢, largely within expectations, making up 24% of full-year consensus estimate.
- Gross revenue and NPI grew 3% and 1.9% to $91.5m and $69.5m respectively, driven by the contributions from Phase 2 of its build-to-suit project for HP Singapore, 14 US data centres (40% interest) as well as compensation from early termination of leases.
- Portfolio occupancy slipped 1.7ppt q/q to 88.3%, dragged by its Singapore assets (-1.8ppts) and lower occupancies across most segments. Overall WALE was 3.7 years with 13%/20.7% of leases expiring in FY19/20.
- Aggregate leverage climbed 1.9ppt q/q to 35% with all-in average funding cost of 3% and debt tenor of 3 years.
- Besides heightened geopolitical risks, the continuing supply of industrial space is exerting pressure on both occupancy and rental rates.
- Trades at annualised 1QFY19 yield of 5.9% yield and 1.36x P/B
*Frasers Centrepoint Trust
- 3QFY18 DPU of 3.053¢ (+1.8%) brought 9M18 payout of 9.153¢ (+2.5%), meeting 76% of full-year consensus estimate.
- For the quarter, gross revenue and NPI rose 10.9% and 13.7% to $48.3m and $35m on the back of positive rental reversions, higher occupancy and shopper traffic at its three larger malls, particularly Northpoint City North Wing.
- 47 leases comprising 4% of total NLA were renewed with positive rental reversion of 5%.
- Portfolio occupancy remained stable q/q at 94%.
- Aggregate leverage edged up 0.1ppt to 29.3% q/q with average debt maturity of 2.2 years and all-in borrowing cost of 2.5%.
- Trades at annualised 3QFY18 yield of 5.4% and 1.1x P/B.
- MKE maintains Buy with TP of $2.55.
- 2Q18 DPU dipped 0.8% to 2.474¢, mainly due to the enlarged unit base and brought 1H18 payout to 4.907¢, representing 49% of full-year consensus estimate.
- For the quarter, gross revenue and NPI grew 3.7% and 2.2% to $90.5m and $60.7m respectively on higher contributions from Suntec Singapore and Suntec City mall but office turned in weaker performance due to transitory downtime from replacement leases.
- Achieved committed occupancy of 99% for its office portfolio (SG: 99.8%, Aust: 96.7%) and 98.2% for its retail portfolio (SG: 98.6%, Aust: 90.4%).
- Signed 187,000 sf of office leases (65% new) and 179,000 sf of retail leases (45% new) with 5.1% and 8.4% of office and retail leases expiring in FY18.
- Office WALE stood at 3.66 years, while retail WALE was 2.31 years at at Jun '18.
- Aggregate leverage was 36.5% with all-in financing cost of 2.74%.
- Trades at annualised 2Q18 yield of 5.2% and 0.9x P/B
- Disposing its entire asset portfolio in Seychelles, which comprises the Banyan Tree Resort as well as land plots for US$70m.
- The group will continue to manage Banyan Tree Resort Seychelles under a hotel management agreement.
- The move is part of the group's strategy on rebalancing its assets and unlock the value of its mature assets to create greater value from other markets.
- Upon completion, the group's EPS and NTA per share will increase by 23.3% and 0.8% to 2.96¢ and 70.66¢ respectively.
- Trades at 0.76x P/B
- 92.6%-owned Singapore Wuxi Investment Holdings is selling its entire 49% stake in Wuxi Singapore Property Investment Co (WSPI) to Golden Concord and Shanghai Sunac Real Estate Development Co for Rmb323m.
- WSPI holds the ongoing residential development Hongshan Mansion in Wuxi.
- The sale is expected to result a net gain of $12m and is slated to complete by end 2018.
*China Everbright Water
- Received multiple subsidies amounting to Rmb16.3m in 1H18 from various government authorities at central, provincial, county and district levels.
- Trades at 8.9x fowrard P/E.
- Invested $0.3m in Singapore-based semiconductor chip design company CLOPTech in the form of convertible loan.
- The spin-off company from A*STAR was established in 2015 and has global partnerships with foundries, equipment manufacturers and technology providers.
- Its IP protected commercial chipset product is used in long-range wireless infrastructure products, and it has secured lead customer orders for product design integration.
- The investment is part of the group’s strategy to diversify into IoT applications.
- The group has an investment commitment of $5m to invest in IoT innovators and start-up activities.
- Trades at 6.7x trailing P/E.
- Acquiring a property located at Higashiyama-ku, Gion Machikitagawa 305, Kyoto City, Japan, for ¥240m ($2.9m), below its valuation amount of ¥270m ($3.3m).
- The site has a land area of 90.5 sqm, with total buildable area of 72 sqm and an allowable building area of 360 sqm for construction a 5-storey commercial building.
- Property is close to well established shopping malls, restaurants and the Yasaka Shrine (Gion Shrine), one of the famous shrines in Kyoto that tourists visit.
- The acquisition will be used as a stepping stone to expand the group’s food business in Japan.
- Trades at 9.8x trailing P/E.
- Commenced drilling development well CHK 1211 in the Chauk oil field in Myanmar, which represents the 11th well to be drilled in the Chauk oil field for Goldpetrol.
- Results of the drilling and completion is expected to release within six weeks from now.
- Group has a 60% interest in the Improved Petroleum Recovery Contract of the Chauk field and 60% ownership in Goldpetrol which will be operating the field.
- Drilling costs are expected to be relatively low since it will be carried out using the Goldpetrol’s ZJ 450 rig and will be footed by existing funds on hand.
- Trades at 0.87x P/B.
- Terminated term sheet and JV agreement with Shoushan Wealth Holdings signed on 16 Dec ’16 and 21 Aug ’17 respectively.
- Moving forward, the group intends to continue to seek similar and/or other business opportunities in China.
- Trades at 0.58x P/B.
- Signed a MOU with EXT Co. of Korea to cooperate to commercialise and market EXT’s proprietary geotechnical engineering technologies in Malaysia, Indonesia and India and other markets
- They will jointly conduct a feasibility study to explore introducing EXT technology including EXT pile, Screw Anchor Pile, Point Foundation Method and Modular Pile into selected regional markets.
- If commercially feasible, the parties will then negotiate to establish a JV or other business arrangement between the parties. The MOA is effective for a term of nine months and may be extended as mutually agreed between the parties.
- This MOA is central to the group's strategy to commercialise disruptive technologies through a global distribution network and diversify its engineering business beyond the O&G and marine industry.
- Trades at 8.3x P/B.