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UOBKH Nera Telecommunications: POS Sale Completed; Expect Special Dividends Nera Telecommunications (NeraTel) has completed the disposal of its point-of-sale (POS) business for S$88m cash, resulting in estimated one-off gains of S$71.5m. We expect the company to pay a hefty special dividend from the sale proceeds. Proceedings for the upcoming 4G airwave auction have begun, setting the stage for Singapore' 4th telco. The interested parties have talked about initial capex plans for 4.5G/Pre5G networks which range from S$300m to S$800m. We believe NeraTel will benefit from this spending in telecommunications and network infrastructure equipment. With the disposal completing as expected, our SOTP-based target price of S$0.835 remains unchanged. The announcement of special dividends should drive share price closer to our target price as we believe the market has yet to price this in. |
OCBC Capitaland: Acquires US$52m site in Vietnam CapitaLand announced that it has acquired for US$51.9m (~S$70m) a 0.5 hectare prime site in Ho Chi Minh City, Vietnam. The site is expected to be developed into a project with a 17-storey residential tower and a 22-storey serviced residence tower. Slated to be launched in 4Q2016 and completed in 2018, the project will have an estimated gross development value of US$106m (S$143m). |
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OCBC Sheng Shiong Group: Store in The Verge mall may close Sheng Shiong Group (SSG) had previously highlighted back in Feb that they had stores in The Verge (45k sq ft) and Jurong Superbowl (16.4k sq ft) following media reports that the mall owners had intention to sell the properties.
It was recently reported that a joint venture between Lum Chang Holdings and a fund of LaSalle Investment Management Asia had signed an agreement to buy The Verge. The timeline for redevelopment in unclear, while the lease for SSG's store is currently slated to expire by 31 Mar 2017. With this looming, we keep in mind that this store's same store sales growth has been relatively weak in the past few years mainly due to construction works in the vicinity. We have a Buy and fair value estimate of S$1.07 on SSG, with growth expected to be driven by new stores. In consideration of current price levels, we advocate investors to re-enter at lower prices. |
Lim & Tan Global Logistic Properties |
