| UOB KAYHIAN |
MAYBANK KIM ENG |
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Singapore Airlines (SIA SP) 1QFY19: Beats Expectations But Declining Pax Yields A Concern
Core net profit growth exceeded our expectations, underpinned by higher-thanexpected cargo yields and a decline in aircraft leasing costs. Parent airline’s core earnings soared 151% yoy but this was entirely due to accounting changes. Excluding this, earnings would have declined 20.5% yoy. We are concerned with pax yields, which fell across all its airlines. We will review our earnings estimates and target price pending updates from the analyst briefing on 30 July.
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Mapletree Commercial Trust (MCT SP) Organic Growth Priced In 1Q in line; organic growth dull - HOLD. Prefer FCT
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| CGS CIMB | OCBC |
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Genting Singapore Prospects still intact; the final countdown in Japan
■ 2Q is typically sequentially weaker but market share gains will still be the main focus, in our view. GENS is expected to announce its results on 3 Aug evening. ■ We estimate 2Q18F/1H18F adjusted EBITDA was S$280.8m/S$639.8m, which forms 23.2%/52.9% of our full-year estimate (S$1.21bn) and consensus (S$1.25bn). ■ Japan finally passed the Integrated Resorts (IR) bill last week. ■ It is no secret that GENS is set on bidding for a Japan integrated resort and its prime balance sheet avails it to large meaningful undertakings, in our view. ■ Maintain Add with a slightly higher TP of S$1.44.
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CapitaLand Retail China Trust: 2Q results within expectations
CapitaLand Retail China Trust’s (CRCT) 2Q results were within expectations. 2Q18 NPI fell 8.7% in RMB terms mainly due to the divestment of CapitaMall Anzhen and lower contributions from CapitaMall Grand Canyon, while NPI fell only 5.9% in SGD terms to S$37.6m due to the stronger RMB. This was offset by increased distributable income contribution from the Rock Square joint venture as well as a partial distribution of gains from the Anzhen divestment. 2Q18 DPU increased 0.8% YoY to 2.64 S cents or 25.4% of our initial full-year forecast, which we consider within our expectations. We keep our BUY rating but place our fair value of S$1.64 under review pending further details from the briefing. |
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PHILLIP SECURITIES |
DBS VICKERS |
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Frasers Centrepoint Trust Steady as she goes SINGAPORE | REAL ESTATE (REIT) | 3Q18 RESULTS (CHANGE OF ANALYST)
9MYTD NPI and DPU were in line with our forecast, at 75% of our FY18e forecast. Northpoint City North Wing (NPNW) main growth driver for portfolio occupancy and positive portfolio rental reversion. Percentage of debt hedged on fixed rates increased to 64% with all-in cost of debt maintained at c.2.5%. Maintain Neutral with higher TP of S$2.15 (prev. S$2.14)
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CITIC Envirotech Ltd Value emerging Turning order backlog into profit.
We upgrade our rating on CITIC Envirotech (CEL) from HOLD to BUY. After a share price correction of c.30% in the past three months, we see more attractive valuation with robust earnings growth of >80% in FY18. Such strong growth is underpinned by the contribution from sizeable projects, such as the Lanzhou project with a total investment of Rmb4.6bn. With improvement in project execution, the strong order backlog of Rmb11bn, coupled with its new initiatives in hazardous waste treatment market, will give good earnings visibility.
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