broker reports

Poor segment performance & competition still a drag on StarHub's earnings, say analysts

SINGAPORE (Feb 18): RHB Research and UOB Kay Hian are maintaining their “neutral” and “sell” calls on StarHub with target prices of $2.02 and $1.45, respectively.

Meanwhile, Phillip Capital has downgraded its rating on StarHub to “neutral” from “accumulate” with a lower target price of $1.58 compared to $1.88 previously.

This comes after the telco concluded FY18 with 26.2% lower earnings of $201.5 million and announced a final dividend of 4 cents.  

Market watchers give Mapletree Commercial’s latest acquisition the nod

SINGAPORE (July 7): Mapletree Commercial Trust announced on Tuesday that it would acquire the office and business park space of Mapletree Business City Phase 1 for $1.86 billion, a move that analysts have welcomed.

Maybank Kim Eng’s Joshua Tan and Derrick Heng said in a report on Thursday that the acquisition would give the trust a 24% exposure to business parks which, incidentally, is also the real estate sub-sector with the best outlook.

Telco sector likely to stay 3-player market; M1 to gain most

SINGAPORE (July 7): DBS Vickers Securities is reiterating its “buy” call on M1, switching the local telco’s previous target price of $2.60 to a bull-case estimate of $3.30 with confidence that the probability of a new mobile entrant is declining.

Presuming a three-player market to remain, DBS has raised M1’s FY18F and FY19F earnings estimates by 3% and 8% respectively.

FairPrice Shop's threat to Sheng Siong 'little' and 'unclear'

SINGAPORE (July 5): Maybank is keeping its “buy ” call for Sheng Siong Group, with a target price of $1.12 while Daiwa is sticking with its “outperform” rating with a target price of 97 cents.

This comes as NTUC FairPrice recently launched its FairPrice Shop, a mini-market style shop mostly filled with low-priced house brand products. Currently, NTUC has two such shops at Eunos and Circuit Road, converted from older supermarkets, with plans for four more by end-2016.

RHB likes Singapore retail and hospitality REITs; neutral on office

SINGAPORE (June 22): RHB is maintaining its “neutral” stance on the office sub-sector of Singapore REITs as it expects spot rents to fall further.

According to Knight Frank, premium Grade A+ office rents (Marina Bay/Raffles area) fell 3.6% q-o-q during 2Q16 to $9.88 psf from $10.25 psf in the previous quarter. The latest drop also marks the fifth consecutive q-o-q drop since the recent peak in 1Q15 at $11.49 psf.

CDL, UOL and CapitaLand top picks as CIMB keeps ‘overweight’ call on property sector

Singapore properties

SINGAPORE (June 16): CIMB is maintaining its “overweight” call on the property sector on the back of an upsurge of sales in May, with "buy" calls and target prices of $10.32 for City Developments (CDL), $8.26 for UOL Group and $4.07 for CapitaLand.

A total of 1,388 units were transacted (1,056 excluding Executive Condos) in the month of May. Excluding ECs, this represented a 41% spike in transactions on a month-on-month basis, or 66% if calculated on a year-on-year basis.

Golden Agri kept on ‘hold’ by OCBC with unchanged 34-cent target

SINGAPORE (May 17): OCBC Investment Research is maintaining its “hold” call on Golden Agri-Resources with an unchanged target price of 34 cents, despite the palm oil plantation company making a “slow start to FY16”.

OCBC lead anaylst Carey Wong says in a Monday report that Golden Agri’s 1Q core earnings of US$40 million ($54.7 million) only met 17% of OCBC’s FY16 estimate. Similarly, 1Q revenue of US$1.49 billion falls short, meeting just 21% of OCBC’s full-year forecast.

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