| UOB KAYHIAN | CIMB |
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REITs – Singapore Déjà Vu All Over Again We expect a muted response to the upcoming rate hike. We view any share price weakness on rate hike concerns as an opportunity to accumulate at attractive levels. The longer debt maturities and a higher proportion of fixed rate debts will further mitigate the impact. We prefer deep value and diversified REITs, with exposure to the industrial business park and hospitality spaces. AREIT, FLT, CCT and FHT are our top picks. Maintain OVERWEIGHT.
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Small caps 4Q16: Earnings mostly in line ■ 4Q16 reporting season saw three stocks beating our estimates (3Q16: 3), while 10 stocks were in line. Four stocks reported earnings below our estimates (3Q16: 3). ■ Our top pick for growth is Cityneon. Execution is the key risk. ■ Talkmed could continue to garner investor interest after its proposed one-for-one bonus issue. M&A is the fastest way to grow the business. ■ UMS Holdings will benefit from the strong outlook for key customer Applied Materials in 2017. Renewal of the manufacturing contract has removed uncertainty. ■ Sunningdale is trading at 0.79x historical P/BV, while peers Fu Yu and Fischer Tech trade at P/BV of 0.96x and 1.02x.
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| PHILLIP SECURITIES | |
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Chip Eng Seng Corporation Ltd Roaring launch at Grandeur Park Residences SINGAPORE | REAL ESTATE | UPDATE Chip Eng Seng Corporation’s (CES) launched a 720-unit condominium development, Grandeur Park Residences, on 4 March 2017 S$79m in development profits after taxes to be recognised progressively; SG12 cents added to our FY17 RNAV estimates Sales volume expected to moderate due to the larger size of remaining unsold units; Demand to remain strong amid declining unsold inventory in vicinity
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| OCBC | |
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Singapore Post: Lacks catalysts Singapore Post (SingPost) announced yesterday that Mr. Marcelo Wesseler has resigned as CEO of SP eCommerce, and will be assisting the company to ensure a transition of duties during his period of notice till 5 Jun 2017. Mr. Paul Demirdjian has been appointed Interim CEO, US Businesses; he is currently the President and CEO of SingPost’s US subsidiary, Jagged Peak. SingPost also announced last Friday that Quantium Solutions International Pte Ltd has entered into a share purchase agreement with PT Rantai Bumi Laut to acquire an additional 18% stake in PT Quantium Solutions Logistics Indonesia for a cash consideration of US$54k (~S$76k). SingPost is investing for the future, and time is required for the efforts to bear fruit. Meanwhile, the market will likely look forward to 1 Jun 2017, which is when the new CEO joins the group. Maintain HOLD with a lower fair value estimate of S$1.39 on SingPost. |
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