SG Office REITS: Daiwa has an office REIT report, with house maintaining a Negative rating on sector and believe their performances could disappoint this year, due to weaker-than-expected increases in spot rents for 2011, tempered by a record addition of new office supply (gross increase of 2.79m sq ft), in the downtown core planning area (downtown core) for 2011….
Maintain Hold for CapitaCommercial Trust, citing valuations are the least demanding in the office S-REIT space, a return of capital or an announcement of a DPU-accretive acquisition or development project could be a positive unit price catalyst….
Maintain Hold for CapitaCommercial Trust, citing valuations are the least demanding in the office S-REIT space, a return of capital or an announcement of a DPU-accretive acquisition or development project could be a positive unit price catalyst….
Downgrades Suntec REIT to Underperform Hold, and believe 2011 earnings could disappoint given that, in its 2011 circular, its DPU forecast of 8.7¢ is still 5.9% below revised DPU forecast…
Maintain Sellfor K-REIT Asia, expecting REIT to face considerable impediments in raising equity to finance the rest of its sponsor’s newly-developed grade-A office properties.
Tuesday, January 18, 2011
CNA
CNA: Co has issued 35m new shares to Mitsubishi Electric Corp(MEC) at $0.19, disc of min tick 0.005 or 2.5% to yday closing price of $0.195. Stake is approx 14.8% of enlarged share capital and will raise est proceeds of $6.65m slated for working capital and expansion needs. MEC is involved in manufacturing of electrical and electronic equipment and have been supplying automation products to CNA, invt to be considered as strategic stake.
RenewableEnergyAsia
RenewableEnergyAsia(REA): Our house maintains Buy lowering TP to $0.35 from prev $0.40. Revision due to waning appetite for wind-farm stocks attributed to poorer performance of China Datang share price on HKSE since 17 Dec 2010. REA has 2 recent JVs with Datang in China wind farms. Positive view on REA’s recent disposal of fastening business for $7.6m, which allow co to focus on core renewable energy segment…
Note that REA has yet to turn profitable and wind farm plays Sinovel and Longyuan on other exchanges, have been lackluster as well. Co to trade at fwd 2011P/E of 17.9x compared to peers in HK and China at approx fwd P/E 24-26x.
Note that REA has yet to turn profitable and wind farm plays Sinovel and Longyuan on other exchanges, have been lackluster as well. Co to trade at fwd 2011P/E of 17.9x compared to peers in HK and China at approx fwd P/E 24-26x.
SIA
SIA: Dec passenger load factor (PLF) dips 3.6% pts to 80.7%, partly due to capacity increase of 4.9% yoy. Another reason was a fall in no. of passengers carried, dipping 1% to 1.51m vs last yr. All regions - East Asia, the Americas, Europe, the South West Pacific as well as West Asia and Africa - saw declines in PLFs versus Dec 09...
Traffic during this traditional peak was affected by weather-related disruptions, which hit the Europe and Americas region and partly due to smaller volume of promotional traffic compared to Dec 09. Meanwhile, SIA's overall cargo traffic rose by 5.1% yoy in Dec while cargo capacity was up by 4.9%. As a result, cargo load factor (CLF) was marginally higher, up 0.1% pt to 63.5%...
CLFs improved for all route regions with the exception of East Asia and Europe. Overall results were fairly weak with poorer passenger load factors taking into acct holiday season. Jet fuel prices rising 8% over past mth to US$111 per barrel is also a cause of concern despite recent fuel charges. Our house maintains Buy at TP$18.90
Traffic during this traditional peak was affected by weather-related disruptions, which hit the Europe and Americas region and partly due to smaller volume of promotional traffic compared to Dec 09. Meanwhile, SIA's overall cargo traffic rose by 5.1% yoy in Dec while cargo capacity was up by 4.9%. As a result, cargo load factor (CLF) was marginally higher, up 0.1% pt to 63.5%...
CLFs improved for all route regions with the exception of East Asia and Europe. Overall results were fairly weak with poorer passenger load factors taking into acct holiday season. Jet fuel prices rising 8% over past mth to US$111 per barrel is also a cause of concern despite recent fuel charges. Our house maintains Buy at TP$18.90
Ascendas REIT
Ascendas REIT: Annouced results, with 3Q11 distributable income +0.8%YoY to $61.7m, DPU +0.6% to 3.29c and net property income at $83.9m. JP Morgan retains Neutral with $2.20 TP, tipping counter as preferred large-cap S-REIT and Overseas expansion as key near term catalyst….
CS meanwhile downgrades to Neutral with $2.33 TP, citing that 3Q11 results in line, with grp experiencing negative rent reversions at 3 segments. Expect the hi-tech space to continue experiencing negative reversions into FY12, and accretions from acquisition growth (if any) to be capped due to its large base….
Daiwa maintains Outperform with $2.50 TP. Note that REIT remains a highly liquid S-REIT with an attractive DPU yield and a stable DPU-growth outlook….
Deutsche Bank maintains Buy with $2.33 TP, noting that 3Q slightly below forecast, yet regional opportunities beckon. In other ratings, MS maintain Underweight, citing that reit trading at full valuations, at 1.4X FY12e P/B vs. 0.9X to 1.4X of S-Reits. Nomura maintain Reduce with $1.88 TP from $1.66 citing that REIT continues to trade at premium multiples: a 14.9% premium to revised PT and 1.36x price to book value. UBS maintain Buy with $2.44 from $2.38, extending its built-to-suit record
CS meanwhile downgrades to Neutral with $2.33 TP, citing that 3Q11 results in line, with grp experiencing negative rent reversions at 3 segments. Expect the hi-tech space to continue experiencing negative reversions into FY12, and accretions from acquisition growth (if any) to be capped due to its large base….
Daiwa maintains Outperform with $2.50 TP. Note that REIT remains a highly liquid S-REIT with an attractive DPU yield and a stable DPU-growth outlook….
Deutsche Bank maintains Buy with $2.33 TP, noting that 3Q slightly below forecast, yet regional opportunities beckon. In other ratings, MS maintain Underweight, citing that reit trading at full valuations, at 1.4X FY12e P/B vs. 0.9X to 1.4X of S-Reits. Nomura maintain Reduce with $1.88 TP from $1.66 citing that REIT continues to trade at premium multiples: a 14.9% premium to revised PT and 1.36x price to book value. UBS maintain Buy with $2.44 from $2.38, extending its built-to-suit record
Courage Marine
Courage Marine: Could see some interests, after Co. annouced that it intends to seek a dual primary listing on the main board of the Stock Exchange of Hong Kong. No application has been made yet to the SEHK and whether or not an application will be made will depend, among other things, on 'the result of the work undertaken' and prevailing market conditions….
The company has also not given a tentative timetable for the dual listing, saying that such an endeavour requires 'fairly extensive work which involves an uncertain time frame.Grp emphasised that the listing would boost Co’s profile and facilitate business opportunities and customer relationships in Hong Kong and China, the latter being an increasingly significant market for the company…..
Courage Marine's latest 3Q results for the period ended Sept 3010, showed it climbing back into the black to US$812,000 from a US$1.38m lossYoY, posting a turnover of US$8.47m, up 54% from US$5.5m YoY….
We note that the industry simple average in HK trades at 36x trailing PE, while Courage Marine currently trades at 13.04x trailing PE. Another benifciary of the move could be SG listed Mercator lines, who similarly deals in dry bulk chatering, and currently trades at 5.9x PE.
The company has also not given a tentative timetable for the dual listing, saying that such an endeavour requires 'fairly extensive work which involves an uncertain time frame.Grp emphasised that the listing would boost Co’s profile and facilitate business opportunities and customer relationships in Hong Kong and China, the latter being an increasingly significant market for the company…..
Courage Marine's latest 3Q results for the period ended Sept 3010, showed it climbing back into the black to US$812,000 from a US$1.38m lossYoY, posting a turnover of US$8.47m, up 54% from US$5.5m YoY….
We note that the industry simple average in HK trades at 36x trailing PE, while Courage Marine currently trades at 13.04x trailing PE. Another benifciary of the move could be SG listed Mercator lines, who similarly deals in dry bulk chatering, and currently trades at 5.9x PE.
SembMarine
SembMarine: Annouced that is has clinched a newbuilding and three upgrading contracts worth $215m.The newbuilding contract, worth $123m, was awarded by Teekay Shipping (Australia) Pty Ltd for the engineering, procurement, construction and commissioning (EPCC) of a dynamically positioned blue water research vessel for Australia, slated for delivery in Q2 2013….
The remaining three upgrading contracts worth $92m will involve a heavy-lift and pipelay vessel, a liquefied natural gas carrier longevity project and a drillship…
We note that the order win could possibly already be factored into order wins assumptions by analysts for FY11, and could have neglible impact on today’s share price movement. Co. has a current orderbook of approximately $4.8b and an estimated order win for 2011 (excluding petrobas) at $4.5b….
We note that the order win could possibly already be factored into order wins assumptions by analysts for FY11, and could have neglible impact on today’s share price movement. Co. has a current orderbook of approximately $4.8b and an estimated order win for 2011 (excluding petrobas) at $4.5b….
At current levels, grp trades at 14.4xE FY11 PE vs its historical average of 21.7x, suggesting that valuations are still compelling. Majority of street has Buy Ratings on Stock, with TP ranging from $4.60 - $7.00.
The remaining three upgrading contracts worth $92m will involve a heavy-lift and pipelay vessel, a liquefied natural gas carrier longevity project and a drillship…
We note that the order win could possibly already be factored into order wins assumptions by analysts for FY11, and could have neglible impact on today’s share price movement. Co. has a current orderbook of approximately $4.8b and an estimated order win for 2011 (excluding petrobas) at $4.5b….
We note that the order win could possibly already be factored into order wins assumptions by analysts for FY11, and could have neglible impact on today’s share price movement. Co. has a current orderbook of approximately $4.8b and an estimated order win for 2011 (excluding petrobas) at $4.5b….
At current levels, grp trades at 14.4xE FY11 PE vs its historical average of 21.7x, suggesting that valuations are still compelling. Majority of street has Buy Ratings on Stock, with TP ranging from $4.60 - $7.00.
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