UOB KAYHIAN | OCBC |
CapitaLand Commercial Trust (CCT SP) 2Q17: Reconstituting Portfolio For Long-term Growth
Results were in line with expectations. Management plans to undertake DPU stabilisation measures in 2H17 following the loss of income from the divestment of One George Street and Wilkie Edge. Golden Shoe carpark redevelopment is underway with targeted yield-on-cost of 5%. Office yield compression to upcycle levels presents significant upside potential with recent data pointing to a sector turnaround. Maintain BUY with an unchanged target price of S$1.90.
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Hutchison Port Holdings Trust: Throughput growth offset by ASP pressure
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RHB | |
Banks Initial Signs Of SIBOR Uptrend Since the end of Jun 2017, the 3-month SIBOR has risen 12bps to 1.115%. This should underpin improvement in Singapore banks’ net interest income and widen NIMs going forward. We have already factored in wider NIMs for the three banks as we go into 2018. Our sensitivity analysis points to DBS’ earnings rising the most from a SIBOR increase, whilst the other two banks would also gain although at a slightly smaller magnitude. However, our sector Top Pick remains UOB given: 1. DBS’ share price outperformance with total shareholder return of 39% over the past 12 months, compared with OCBC’s 28% and UOB’s 32%; 2. UOB’s stronger balance sheet strength; 3. UOB’s ability to sequentially grow net interest income faster than peers over the past three quarters.
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Check out our compilation of Target Prices