- Investors will anticipate the choice of the next Fed chair this week, which will have policy implications on Trump's economic agenda, as well as a slate of Asian PMIs and 3Q corporate earnings for direction.
- Key results set for release this week include Sembcorp Marine (31 Oct), StarHub (2 Nov), UOB and SIAE (3 Nov).
- Oil-related counters could see an uplift after Brent hit past its two-year high above US$60/bbl, stoked by Saudi and Russian support for extending OPEC-led output cuts.
- Technically, STI has broken above the 3,380 resistance and now appears headed towards the next congestion level at 3,470.
- Passenger traffic at Changi Airport is set for a record high this year (2016: 58.7m) as airlines ramp up flights to existing and new destinations for the year-end peak travel season.
- Close to 130 new flights a week, the highest number in four years, will be progressively added from now till end of the year as compared to 90 flights added for the same period last year.
- For 8M17, the airport handled 41m passengers, up 5.7%, with the bulk of the growth coming from routes within Asia, particularly to secondary cities in China and SE Asia.
- This could be a boon for airport services related counters such as SATS and SIA Engineering.
- 1QFY18 DPU fell 7.7% to 1.2¢, in line with estimates.
- Gross revenue and NPI of $53m (-4.1%) and $41.4m (-3.5%) were mainly dragged by absence of a pre-termination rental compensation at Wisma Atria (which has since been filled), lower office occupancy in Singapore and weaker overseas contributions in Malaysia.
- Portfolio occupancy slipped 2.1ppt to 93.4%, while aggregate leverage held at 35.4% (+0.1ppt).
- Trades at an annualised 1Q yield of 6.2% and 0.84x P/B.
*Frasers Hospitality Trust
- 4QFY17 DPS rose 7.2% to 1.2763¢, but FY17 payout slipped 3.5% to 5.05¢ following the rights issue in Oct '16, meeting 97% of street forecast.
- Gross revenue for the quarter jumped 24.2% to $41.6m, on the addition of Novotel Melbourne on Collins and strong growth in Malaysian assets.
- NPI rose at a slower 9.8% to $31.5m as RevPAR of the Australian portfolio fell 4.9% on refurbishment works, while rising wage pressure in the UK limited operating profit.
- Aggregate leverage eased to 32.1% (-2ppt q/q).
- Last traded at annualised 4Q yield of 6.6% and 0.95x P/B.
- 3Q17 net profit of $16.4m (+1%) took 9M17 earnings of $48.7m to just 70% of full-year consensus estimate.
- Revenue was flat at $119.6m (+0.3%), as higher patient load was offset by lower renewal of healthcare plans by foreign patients.
- Operating margin narrowed to 15.4% (-0.2ppt) on increased staff costs (+2.1%) in preparation for opening of Raffles Hospital extension in 4Q17.
- Trades at 28.8x forward P/E.
- 3Q17 net profit rose 21.5% to $2.3m, bringing 9M17 earnings of $6.5m (+51.9%) to 78% of full year estimate.
- Revenue jumped 24.9% to $26.2m, underpinned by a 21.1% increase in assets under administration to $6.81b.
- Operating margin expanded 1.1ppt to 9.9% as expenses grew at a slower clip to $9.9m (+19.2%), with the increase mainly stemming from the new Shanghai office.
- Raised interim DPS by 10% to 0.75¢.
- Trades at FY18 P/E of 23.5x.
- FY17 loss deepened US$121.2m (FY16: US$5m), mainly ditched by US$153.1m of impairments.
- Revenue sank 56% to US$106.8m on reduced workload in the oilfield and drilling services division and lower utilisation and charter rates in the marine division.
- Gross margin contracted 8.8ppt to 11.7%.
- NAV/share at US$0.1624.
- 4QFY8/17 net profit surged 81% from a low base to $1.3m, lifting FY17 earnings to $2.2m (+91%).
- For the quarter, revenue climbed 6.5% to $13.4m on increased orders from automotive customers.
- Gross margin expanded 9.3ppt to 45.4%.
- Bottom line was further boosted by tax credit, albeit partially dragged by lower other income and higher other expenses.
- Maintained first and final DPS of 0.4¢.
- NAV/share at 11.55¢.
- Secured contracts to manage two serviced apartment properties in Raffles Place and Rochor, Singapore's new growth area and CBD extension.
- Both properties will operate under the Citadines brand and add 619 units to its portfolio, bringing total units to 2,300.
- The properties are slated to open in 2020 and 2021.
- Last traded at 18.1x forward P/E.
- Divested it's entire 24.5% stake in JVCo Asian Compressor Technology Services Company (ACTSC) for $14.7m.
- ACTSC provides repair and overhaul of compressor stators, shrouds and honeycomb seals and segments.
- The disposal is in line with group's restructuring initiatives to focus on growth areas and build next-generation aircraft capabilities, and will result in a net gain of $14.3m.
- Last traded at 22x forward P/E.
- CSC Holdings
- Healthway Medical
- OUE Lippo Healthcare (former IHC)
- Divested its entire interest in Kepwealth Property Phils for $21m, or 2.13x P/B.
- Kepwealth owns the majority of a mix office and residential building in Cebu, Philippines.
- Trades at 16.3x forward P/E.
- Acquired 14.5% stake in Mkango Resources for £0.5m.
- Mkango is a mineral exploration and development firm, dual listed on Alternative Investment Market of London Stock Exchange and TSX Venture Exchange.
- Expects post 3Q17 P/B of 0.26-0.3x.
- Acquiring 80% stake in Vemac Services for $2.2m, or 10x FY16 P/E.
- Vemac provides repair and maintenance of refrigerating, air-conditioning and ventilation machinery and equipment.
- Last traded at 10.4x trailing P/E.