| MAYBANK KIM ENG | UOB KAYHIAN |
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ComfortDelGro (CD SP) Uberising Comfort
New service could benefit Comfort taxis and riders Comfort and Uber have jointly announced the details of their new service, UberFLASH. Starting on 19 Jan 2018, the new service will match Uber riders with the nearest vehicle, a Comfort taxi or an uberX vehicle. We view this positively, as the addition of Comfort taxis into the platform should increase the booking jobs of taxi drivers and reduce waiting time of riders. Also, lower fares and dynamic pricing function should increase the competitiveness of Comfort taxis. Maintain BUY and DCF-based TP of SGD2.40 (WACC 9%; LTG 0%) (implies 16x FY18E EPS, in line with LT mean). Key indicators to monitor are: 1) number of taxi bookings under the new platform; 2) the rate of reduction in taxi fleet; and 3) Uber’s market share.
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Property – Singapore Key Takeaways From The Built Environment & Property Prospects Seminar
At the Built Environment And Property Prospects Seminar 2018, industry experts echoed our bullishness in the residential and office segments, while noting mixed outlook for the industrial segment. We maintain OVERWEIGHT on Property and REITs, preferring stocks with exposure to the residential, hotel and office segments, as we head deeper into the upcycle. Our top picks are City Developments, Wing Tai, CDREIT, CCT and AREIT.
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| CIMB | CIMB |
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Cache Logistics Trust 4Q17: Awaiting catalysts
■ FY17 DPU of 6.583 Scts (-10.9% yoy) was below consensus and our expectation, at 90% of our full-year estimate. 4Q17 DPU of 1.597 Scts (-9.8% yoy) was at 22%. ■ The negative variation stemmed from a larger unit base from its rights issue (vs. our calculations) and that we assumed the top-up of S$3.8m would be fully disbursed. ■ Nonetheless, from a qoq perspective, 4Q17 showed initial signs of stabilisation. ■ We await catalysts in the form of better clarity over the renewal of CWT Commodity Hub (master lease expires in Apr 2018) as well as potential Australian acquisitions. ■ Maintain Hold, with a higher DDM-based TP.
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First REIT Boost from new properties
■ FY17 DPU of 8.47 Scts was in line with expectations, making up 100.3% of our FY17 forecast. ■ Earnings growth momentum remained driven by new acquisitions. ■ Healthy gearing of 33.6%. ■ Maintain Hold with a slightly higher target price of S$1.44.
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DBS VICKERS |
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Frasers Commercial Trust A dawn of a new era
Laggard office play. We maintain our BUY call with a TP of S$1.71. While the share price of Frasers Commercial Trust (FCOT) over the past 18 months has rallied, it has lagged the other office REITs such as CapitaLand Commercial Trust (CCT) and Keppel REIT (KREIT) given concerns over the impact of HP vacating Alexandra Technopark (ATP) and concerns over a lack of growth. As these issues in our view have been addressed, we believe FCOT’s share price should catch up, as the c.2% yield differential between FCOT and its large cap peers is higher than the historical average spread of c.0.8%.
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Check out our compilation of Target Prices
