| MAYBANK KIM ENG | CIMB |
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DBS Group (DBS SP) Negatives price in; U/G HOLD TP and EPS est.’s lifted 9M16 core PATMI of SGD3.3b beat on higher non-interest income and lower costs, but provisions were higher than our expectations. 3Q16 core PATMI was flat YoY. Key factors were: 1) flat YoY growth in net interest income from lower SGD interest rates and higher liquidity buffers; and 2) higher provisions (>100% YoY). It also announced a small bolt-on acquisition of ANZ’s wealth management and retail business, which is not expected to have material impact on capital. We raise FY16-18E earnings estimates by c.1% each to reflect higher non-interest income and lower costs, offset by higher provisions. Our TP is raised 2% to SGD14.55 based on ~0.8x FY17E P/BV. We think the negatives are largely priced in. U/G to HOLD. |
Starhill Global REIT 1QFY17: Uplift from Toshin master lease; redevelopment of Arcade Plaza ■ SGREIT’s 1QFY17 results were a mixed bag. At 23% of our FY17 forecast, 1QFY17 DPU of 1.30 Scts was slightly below our expectations but within consensus. ■ Singapore retail NPI improved 7% yoy, driven by full-quarter contribution of higher rent from the Toshin master lease. Singapore office dragged by lower occupancies. ■ Malaysia NPI increased 8.1% yoy thanks to full-quarter contribution of rental uplift. ■ Australia NPI dropped 13.3% yoy due to lower occupancies. Near-term impact from redevelopment of Arcade Plaza, although this should be earnings accretive in FY18. ■ Cut our FY17-19F DPU by 5.4-7.1% due to continued challenging retail outlook. Reiterate Hold, with lower DDM-based target price of S$0.81. |
| OCBC SECURITIES | |
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OUE Hospitality Trust: Current price levels attractive
Upgrade to BUY Fair value remains at S$0.73
OUE Hospitality Trust’s (OUEHT) 3Q16 DPU fell 28.5% YoY to 1.23 S cents or 27% of our full-year forecast. Mandarin Orchard Singapore (MOS) posted a 3.1% drop in gross revenue as 3Q RevPAR dropped 7.8% YoY to S$224. Crowne Plaza Changi Airport (CPCA) posted a 52.3% gain in gross revenue to S$6.1m, including an income support of S$1.0m, with the addition of 243 rooms which opened for business on 1 Aug 2016. Against yesterday’s price of S$0.68, OUEHT is trading at a blended FY16/17 forward dividend yield of 7.5%. Given current prices, we upgrade OUEHT from Hold to BUY with an unchanged fair value of S$0.73.
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| PHILLIP SECURITIES | |
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iFAST Corporation Ltd. Expansion plans gaining traction 3Q16 Net revenue increased 5.3% y-o-y to S$10.68mn owing to increase in AUA following the recovery after Brexit New businesses to support AUA growth Singapore stockbroking business to launch by 4Q16/1Q17 3Q16 Revenue/PATMI met 103.3%/96.5% of our 3Q16 estimations Maintain “BUY” with unchanged target price of S$1.275
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