| MAYBANK KIM ENG | PHILLIP SECURITIES |
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City Developments (CIT SP) Expect 2H Catch-Up Maintain BUY & SGD12.05 TP While 1H17 made up just 31% of our FY17E, we deem the results in line as 2H is expected to make up for the shortfall. A strong rebound in home sales and an improving outlook for Singapore’s residential market led to provision write-backs. Mr Sherman Kwek will be taking over as CEO at year-end and we expect a smooth transition. We continue to see CityDev as a proxy for recovering home prices, which should provide re-rating catalysts. Reiterate BUY and SGD12.05 TP, at a blended discount of 11% to RNAV of SGD13.48.
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ComfortDelGro Corp Ltd Oversold and earnings to bottom this year SINGAPORE | TRANSPORT SERVICES | 2Q17 RESULTS
2Q revenue in line with our forecast 2Q PATMI exceeded our forecast by 13% on lower than expected operating expenses 1H17 interim dividend of 4.35 cents, higher than 1H16’s 4.25 cents 75%-owned subsidiary, SBST, reported a strong set of results Upgrade to Buy from Accumulate; lower target price of $2.78 (previously $3.02)
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| OCBC SECURITIES | |
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Ascendas REIT: Proposed divestment of No. 13 International Business Park Ascendas REIT (A-REIT) announced that it has entered into a sale and purchase agreement with Pension Real Estate Singapore Pte Ltd for the sale of its No. 13 International Business Park property for S$24.8m (net proceeds of S$24.6m after divestment costs). This comes in higher than A-REIT’s purchase price of S$20.0m and the last independent valuation of S$22.4m (as at 31 Mar 2017), and is in-line with its capital recycling strategy. The property is a seven-storey business park building with a GFA of 10,116 sqm and occupancy of only 39.6%, as at 30 Jun 2017. It is ~10.7 years old and has a remaining land lease tenure of 47 years. Given the relatively small size of this transaction in relation to A-REIT’s portfolio, we maintain our HOLD rating and S$2.66 fair value on the stock.
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| UOB KAYHIAN | DBS VICKERS |
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FOOD EMPIRE HOLDINGS (FEH SP) 2Q17: Results In-line
Food Empire’s 2Q17 results came in within expectations as net profit to equity holders rose 93.7% on the back of strong growth in sales for most key markets. As core market currencies stabilise with a possible recovery in oil prices, we expect Food Empire’s pricing power to translate into stable growth for the company. The company is exploring M&A to expand further. Maintain BUY with a slightly lower PE-based target price of S$0.87 (previously S$0.90).
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Thai Beverage Public Company On track for stronger y-o-y growth
• 3Q17 headline profit surged, helped by valuation gains; core profit with expectations • YTD performance tracking with estimates; project 4Q17F to show stronger y-o-y growth • Details on KFC deal scarce given non-disclosure prior to completion • Maintain BUY, TP unchanged at S$1.07
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