| UOB KAYHIAN |
CGS CIMB |
|
REITs – Singapore 2Q18: CDL Hospitality (In Line), 3QFY18: FHT (Below)
CDREIT’s 2Q18 results were in line but FHT’s was below expectations. CDREIT’s Singapore RevPAR fell marginally by 0.9% yoy amid weaker corporate demand and competition in RFPs by new hotels although this should subside as supply of new rooms in Singapore is expected to taper to 1.3% in 2017-20 (2014-17: CAGR of 5.5%). Maintain BUY with a lower target price of S$1.86. FHT’s Singapore portfolio continued to do well in anticipation of a stronger 2H18 but we see weakness across its Australia and Malaysia markets. Maintain BUY with a lower target price of S$0.82. Maintain OVERWEIGHT.
|
■ 2Q/1H18 DPU of 1.17/2.43 Scts was broadly in line with our expectations. ■ MOS performance affected by lower corporate segment, CPCA still ramping up. ■ Retail leases continue to be renewed positively. ■ Maintain Add with a slightly lower TP of S$0.89.
|
| OCBC | MAYBANK KIM ENG |
|
CDL Hospitality Trusts: Unfortunate case of delayed gratification?
CDL Hospitality Trusts’ (CDLHT) 2Q results were within expectations albeit on the lower end. We continue to believe CDLHT’s SG-heavy portfolio remains well-poised to ride the hospitality upcycle. However, following this quarter’s update, we expect to see much more muted DPU growth in the next half-year with a more robust pick-up in SG RevPAR arriving only in FY19. After adjustments, our fair value drops 11% from S$1.60 to S$1.42. We do not find current valuations attractive – CDLHT is trading at a 5.9% FY18F yield as of 27 Jul’s close, or more than 1 std deviation below its 5 year mean. Against our fair value of S$1.42, the REIT would trade at 6.8% or close to its 5 year mean. While 10% down from its high in Jan, we see an unattractive risk-reward for the REIT at this point in time. We downgrade CDLHT from Hold to SELL.
|
M1 (M1 SP) 1H18 in line; 2H18 outlook sombre
Extent of competition will be major determinant M1’s 1H18 results were in line with consensus and our expectation. Management guidance of lower profit in 2H18 affirms our expectation of a more challenging 2H. We maintain our forecasts, DCF-based TP (WACC 4.1%, LTG -1%) of SGD1.63 and HOLD. The industry’s fortune and how our assumptions will pan out will heavily depend on the extent and impact of competition. In the sector, we prefer StarHub (STH SP, SGD1.71, BUY, TP SGD1.96) whose de-rating has exceeded our base-case outlook.
|
|
PHILLIP SECURITIES |
RHB SECURITIES |
|
Ascendas REIT Maiden entry into UK SINGAPORE | REAL ESTATE (REIT) | UPDATE
Maiden entry into UK through a portfolio of 12 logistics properties Acquisition cost of £207.27 mn (S$373.15 mn) expected to be fully funded by GBPdenominated debt Maintain Accumulate; new target price of $2.96 (previously $2.91)
|
Singapore Exchange Derivatives Main Driver To 4Q Revenue Growth
Maintain BUY, with SGD9.00 TP – pegged to 24x FY19F EPS (1SD above 3-year mean of 22.2x) and offering 19% upside. FY18 net profit rose 7% YoY, with SADV also up 12% YoY to SGD1.26bn. FY18 derivatives revenue surged 12% YoY, contributing 40% of total revenue. We forecast FY19 SADV of SGD1.39bn, on more trading volume from market volatility. We forecast FY19 DADC of 821,000, which is 3% higher YoY.
|
Check out our compilation of Target Prices
