| OCBC | CIMB |
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First REIT: Good FY17 scorecard
First REIT’s (FREIT) results were within our expectations. 4Q17 gross revenue grew 5.8% YoY to S$28.6m while DPU grew 0.9% YoY to 2.15 S-cents. On a full-year basis, gross revenue was up 3.7% to S$111.0m, forming 100.2% of our forecast. FY17 DPU registered a 1.2% YoY growth to 8.57 S-cents, comprising 99.8% of our FY17 forecast. Growth in 4Q17 was on the back of a full quarter’s contribution from Siloam Hospitals Labuan Bajo (acquired in Dec 2016), and initial contributions from Siloam Hospitals Buton and Lippo Plaza Buton and Siloam Hospitals Yogyakarta, which were acquired in Oct 17 and Dec 17, respectively. Gearing remains healthy at 33.6%, as at 31 Dec 2017. FREIT has also secured up to S$400m in syndicated secured financing facilities, which will partially go towards refinancing outstanding bank loans and fund future acquisitions. Further to an analyst briefing today, we maintain our BUY rating, but put our fair value of S$1.44 under review.
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Property Devt & Invt Small is beautiful II
■ HTON, KHHL, KSH, LBG and SHG have strong underlying net asset values and are trading at discounts of 12-61% to their marked-to-market asset values. ■ SHG has one of the larger exposures to Singapore residential in the sector, with a 50% share of 1.64m sq ft of residential GFA, including the Park West collective sale. ■ HTON has a sizeable hotel portfolio of 1,312 hotel rooms in Thailand, UK and Japan. ■ LBG and KHHL’s construction order books stood at S$972m and S$344m, as at Nov 2017 / Sep 2017 respectively.
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| UOB Kayhian | DBS |
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ComfortDelGro Corporation (CD SP) Negatives Mostly Priced In
While Singapore taxi conditions remain challenging, we believe the sector is gradually moving towards a more stable market. CD’s proposed alliance with Uber is also expected to be accretive. Maintain BUY and PE based-target price of S$2.25.
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Singapore: Beyond the noises
• Non-oil domestic export (NODX) growth moderated to 3.1% YoY in December. Sequentially, the headline number fell by 5% MoM sa. • A high base in the same period last year, technical payback from the strong performance in the past few months and, most importantly, the strong SGD, have contributed to the reported weakness in the NODX. • We expect more volatility in exports in the coming months due to the upcoming Chinese New Year but overall outlook for NODX remains positive.
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CIMB |
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ST Engineering S$2.8bn aerospace contracts in 2017
■ STE’s aerospace division clinched S$510m of MRO contracts in 4Q17, bringing 2017 contract wins to S$2.8bn (+8% yoy). At group level, it has secured a record S$6.3bn. ■ We think the stock is cheap at 16x CY19F P/E, below its 5-year average of 20x 12M rolling forward P/E. It has also lagged its peers in capital goods YTD. ■ Maintain Add and target price of S$3.85, based on blended valuations.
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Check out our compilation of Target Prices
