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UOB KAYHIAN |
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Mapletree Logistics Trust Triple treat to end the year
■ MLT has made three accretive acquisitions for S$192m which increased gearing to 39.2% and AUM to S$7.8bn. ■ We are positive on its focus on domestic consumption and quality assets. ■ Add maintained with a higher DDM-based TP of S$1.42.
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Telecommunications – Singapore
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| RHB SECURITIES | DBS VICKERS |
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Singapore Strategy 2019 Stay Defensive!
Stay defensive amidst growth uncertainties. The STI, down 12% (USD terms) in 2018, could remain under pressure in 2019 amidst slowing domestic GDP growth and an uncertain trade outlook amidst China-US tensions. While 12.6x forward P/E and 4.2% dividend yield make the STI’s valuations look compelling, we recommend investors stay selective and focus on buying stocks offering stable earnings, strong balance sheets, and sustainable dividends. Consumer and industrial are our defensive sector picks. We stay overweight (OW) on banks given reasonable valuations, strong growth and high yield (see our 2019 Singapore Strategy for details)
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Singapore REITs
Christmas present from the US – no negative impact from new tax regulations • New proposed tax regulations indicate tax structures for MUST and KORE are in compliance with changes in US tax act from late 2017 • Recent increase in tax rates in Barbados to potentially impact DPU’s by up to 1% • But there is potential for US office REITs to revert back to original IPO tax structure which would reduce effective tax rates going forward • Maintain BUY on MUST (TP of US$0.88) and KORE (TP of US$0.78)
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Check out our compilation of Target Prices
