| PHILLIP SECURITIES | CIMB |
|
First REIT Strong sponsor acquisition pipeline to look forward to First REIT closed FY16 with a record DPU of SG 8.47 cents, up 2% from FY2015. Terminated Siloam Hospitals Yogyakarta (first announced in February 2016) deal still on the cards, possibly by 1H2017. Portfolio valuation dropped 1.2% as a result of weaker cashflow due to the weak Singapore CPI.
|
Singapore Strategy Marketing feedback ■ Our recent marketing themes: 1) under-owned cyclicals could turn around, 2) US$ strength and better US economy, and 3) consumer stocks turnaround stories. ■ Alpha picks: Venture, STE, UOL, Dairy Farm, First Resources, Best World, Cityneon, MMT, Valuetronics. We also added SMM to the list.
|
| OCBC | |
|
Viva Industrial Trust: Reiterate BUY; completion of Chin Bee acquisition Viva Industrial Trust (VIT) has completed the acquisition of newly completed ramp-up logistics development (Chin Bee Property) for S$87.3m, excluding the upfront land premium and stamp duty. As a result of the acquisition, VIT’s portfolio has grown by 7.9% to S$1.28b. We have updated the parameters of our DDM model to reflect the date of the acquisition, which we had originally anticipated to be midDec. Our FY17 DPU drops from 7.5 S cents to 7.4 S cents due to a slightly-less-than-full year contribution from the Chin Bee property. In 2017, we look forward to two catalysts for an improvement of fundamentals at UE BizHub – the removal of hoarding and the completion of the Downtown Line connection at Expo nearer the end of the year. As we raise our risk-free rate from 2.4% to 2.7%, our fair value is pared down to S$0.78. We reiterate our BUY rating on VIT with a fair value estimate of S$0.78.
|
|
| UOB KayHian | DBS VICKERS |
|
Sheng Siong Group (SSG SP) Upgrade To BUY With 20% Upside We upgrade SSG from HOLD to BUY on valuation grounds as the stock price has retreated by 20% from its high in late-16. Even though competition for selling space is high, putting outlet expansion at risk, we believe the company has what it takes to weather this period of irrational exuberance and emerge stronger. We upgrade the company to a BUY with an unchanged PE-based target price of S$1.12. The stock offers a resilient forward dividend yield of 4-4.5%.
|
Singapore Exchange (SGX SP) : BUY Net profit gained 5% y-o-y on increased market activity Net profit gained 5% y-o-y on increased market activity Equities and Fixed Income did well but revenue for Derivatives eased slightly Expenses largely unchanged; guiding for lower expenses ahead Maintain forecasts and BUY call with TP of S$8.30
|
Check out our compilation of Target Prices
