broker's call

Koufu is one smooth operator of bubble teashops and foodcourts

SINGAPORE (Aug 20): Koufu Group is one of the few stocks bucking the lacklustre performance trend among F&B plays in the April to June quarter.

While most of peers saw a drop in earnings, the foodcourt operator stood out with a 16.2% jump in 2Q19 earnings to $7.2 million from $6.2 million in 2Q18, mainly due to higher contributions across its business segments.

See: Koufu reports 16.2% increase in 2Q19 earnings to $7.2 mil on higher revenue

Which REIT will benefit from the transformation of Greater Southern Waterfront?

SINGAPORE (Aug 20): Singapore is pushing up its plans to transform the Greater Southern Waterfront (GSW) into the next trendy place to live, work and play.

First unveiled in March earlier this year, GSW will be redeveloped over the next five to 10 years, starting from the relocation of the PSA City Terminal in Tanjong Pagar to Tuas from 2027 onwards to help free up prime land.

Long-term growth story of China Aviation Oil intact; weaker 2Q results only a blip

SINGAPORE (Aug 15): China Aviation Oil (CAO) reported a 2.9% fall in 2Q19 earnings to US$28.4 million from US$29.3 million in 2Q18.

Revenue increased 2.9% to US$6.0 billion from US$5.8 billion a year ago as total supply and trading volume increased 6.62% to 10.63 million tonnes.

Volume for jet fuel rose 19.41% to 4.06 million tonnes. Volume for gas oil rose 44.35% to 1.66 million tonnes for 2Q19. However, volume of other oil products fell 9.41% to 4.91 million tonnes.

Jumbo's rapid expansion may have caused 3Q earnings miss but growth thesis stays intact

SINGAPORE (Aug 13): Jumbo Seafood restaurants serve up Singaporean-style Chinese seafood cuisine that is popular with locals and tourists alike.

But instead of having them travel all the way to the republic to enjoy chilli crab and drunken prawns, Jumbo has gone to Bangkok, Fuzhou, Ho Chi Minh, Taipei, Taichung and Seoul, bringing the total number of restaurants across Asia to 18.

New acquisitions could bode well for CapitaLand Retail China Trust

SINGAPORE (Aug 8): Units in CapitaLand Retail China Trust (CRCT) have fallen 6% over the past two weeks. From a 52-week peak of $1.63 in late July, the counter shed 10 cents to close at $1.53 on Aug 7. And the downtrend does not seem to have finished running its course.

Units in CRCT dipped another 3% to $1.48 in early morning trading on Thursday, before recovering slightly to $1.50 as at 3pm.

But market watchers are far from worried.

SIA on lookout for softening demand as Scoot, SilkAir issues drag on

SINGAPORE (Aug 7): Singapore Airlines is worried about the weakening global economy, which in the past had portended a softening of business travel demand and yields, the airline told analysts in its 1Q results briefing on Aug 1.

SIA said it is also bearish on the outlook for its cargo business, as the US-China trade war has caused demand to fall although freighter capacity put in place during the cargo boom years of 2017-18 have remained in place, causing oversupply and continuing to put pressure on cargo yields. 

Will Hongkong Land be able to withstand weakening office space demand?

SINGAPORE (Aug 6): Hongkong Land, the property group which is a member of the Jardine group, reported a 63% fall in 1H19 earnings ended June to US$411 million ($568 million) from US$1.1 billion in 1H18.

See: Jardine Matheson and Jardine Strategic report higher earnings in 1H on one-off gain

This came on the back of a 46% fall in 1H19 revenue to US$803.9 million from US$1.5 billion a year ago.

Ascendas India Trust in sweet spot to ride India's IT, logistics boom

SINGAPORE (Aug 1): Riding on the fast growing IT and logistics industries in India, Ascendas India Trust (a-iTrust) is expecting rentals in Bangalore and Hyderabad’s IT Corridor I to increase over the next few quarters on the back of sustained demand.

In particular, the trust’s logistic park, Arshiya Free Trade Warehousing Zone (FTWZ) in Panvel, near Mumbai, has faced an increase in demand from existing and prospective tenants.

This prompted a-iTrust to build – and later acquire when completed – an additional warehouse there.

Mapletree Commercial Trust to continue riding on robust office sector outlook

SINGAPORE (July 29): VivoCity, Singapore’s largest shopping mall, launched its retail extension of its Basement 1 area in July last year as part of the mall’s $16 million asset enhancement initiative (AEI) announced back in Jan 2016 and completed in FY19.

MLT outlook turns cautious amid macro uncertainties

SINGAPORE (July 25): Mapletree Logistics Trust (MLT) listed on the Singapore Exchange (SGX) in July 2005, with just 15 Singapore-based properties in its IPO portfolio.

Fast forward 14 years, the REIT’s portfolio as at June 30 comprises 137 properties across Singapore, Hong Kong, Japan, Australia, South Korea, China, Malaysia and Vietnam valued at $7.9 billion.

Year to date, the counter is up 25.2% at $1.59 as it rides on strengthening market dynamics.

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