|
CIMB Pan-United Corp Ltd A trip to Pan-United’s ports in Changshu ■ We visited Pan-U’s two ports (CXP, CCIP) in the Changshu City of Jiangsu, China. ■ The ports are poised to benefit from the economic growth of Yangtze River Delta. ■ Management remains focused on realising synergies from its acquisition of CCIP and is in the process of refinancing debt related to the acquisition. ■ Pan-U’s core businesses- basic building resources, shipping- remain challenging. ■ Pan-U currently trades at 1.22x FY16 P/BV (based on Bloomberg consensus forecasts), broadly in line with its historical average 1-year forward P/BV of 1.31x
|
OCBC UOL Group: JV with UIC to acquire 120 Holborn in London Buys 120 Holborn for GBP229.6m 3rd asset purchase in London UOL announced that a newly incorporated JV with UIC has entered into a sales and purchase agreement to acquire for GBP229.6m a freehold 9-storey mixed used building located at 120 Holborn, Midtown London, UK. The asset is located in Farringdon, London and is within walking distance to Chancery Lane Tube Station, Farringdon Tube Station interchange and the upcoming Cross Rail. The site area is approximately 113,256 sq ft with a net lettable area of 349,088 sq ft comprising 197,226 sq ft and 151,862 sq ft of office and retail space, respectively. We believe this is a decent price for an asset in an vicinity that UOL knows well; recall that the group had in June 2016 acquired 110 High Holborn London for GBP98.75m which is located nearby. In addition to Bishopsgate, this is the group’s third acquisition in the UK and we like that management is focused on diversifying and strengthening the group’s recurring income streams in light of a muted residential market in Singapore and strong competition for land-banking. Maintain BUY with an unchanged fair value estimate of S$7.30. |
|
Maybank Kim Eng Sembcorp Industries (SCI SP) India’s Good & Bad; U/G to HOLD Downside mostly priced in; U/G to HOLD We upgrade SCI from SELL to HOLD as we believe negatives have been priced in. That said, near-term India risks could still cap upside and we would prefer to wait for India to deliver. We cut FY16-18E EPS by 4-9% for generally lower utilities segment earnings though our SOTP TP climbs slightly from SGD2.35 to SGD2.40 after rollover to FY17. We continue to value its utilities business at 7x P/E, 1SD below its 10-year mean.
|
UOB KayHian STRATEGY – SINGAPORE Alpha Picks: Two New Initiations Two New Conviction Picks We highlight two additions to our alpha picks as a result of two new initiations in September – Keppel T&T and Duty Free International. WHAT’S NEW Two new conviction calls to consider for October. We initiated coverage on two new stocks in September – Keppel T&T and Duty Free International. Consequently, we add these two stocks to our conviction call list. |
