broker's call

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.

Can Keppel DC REIT deliver the acquisitions needed to keep premium valuations?

SINGAPORE (July 22): Keppel DC REIT, the first pure-play data centre REIT listed in Asia, has seen its shares climb some 28% so far this year on the back of the global boom in data centres.

The REIT is now trading near an all-time high, nearly double of its IPO price of 93 cents per unit in December 2014.

In the latest quarter, Keppel DC REIT posted a 6% increase in distribution per unit (DPU) to 1.93 cents, from 1.82 cents in 2Q18.

Keppel REIT comes under short-term stress from investment banking tenants

SINGAPORE (July 18): Deutsche Bank earlier this month announced it was axeing 18,000 jobs globally in one of the biggest overhauls to an investment bank since the aftermath of the financial crisis.

The bank also outlined a restructuring plan that will ultimately cost €7.4 billion ($11.3 billion) and see it scale back its investment bank, scrap its global equities business and also cut some of its fixed-income operations.

The news must have been equally depressing for the manager of Keppel REIT as the bank occupies about 20,000 sf at One Raffles Quay (ORQ).

New business structure enables CapitaLand to deploy capital more effectively

SINGAPORE (July 16): CapitaLand completed its merger with Ascendas-Singbridge (ASB) on June 30. The group acquired all the shares in two ASB subsidiaries from Temasek for $6 billion, to create the largest diversified property group in Asia.

See: Singbridge in $11 bil deal to create Asia’s largest diversified real estate group

Hyphens Pharma gears up for growth with product pipeline, Vietnam focus

SINGAPORE (July 9): Since its IPO in May last year, Hyphens Pharma International, the specialty pharmaceutical and consumer healthcare group, has gradually been building up its presence, both locally and in the region.

In 2018, Hyphens launched five products but more are expected this year with two dermatological products – Ceradan Advanced and TDF Fairence T-Complex – pending commercialisation.

CCT downgraded to 'sell' by OCBC after price balloons 22% YTD

SINGAPORE (June 25): OCBC Investment Research is downgrading CapitaLand Commercial Trust (CCT) to “sell” with an unchanged fair value estimate of $1.88, after the stock saw its share price surge 22.3% so far this year.

In a Monday report, OCBC’s research team says the run-up had been supported by a flight to defensive safe names and a dovish bias from the US Federal Reserve.

But now, the Fed is expected to shift its policy stance.

Genting Singapore kept at 'add' by CGS-CIMB on new casino openings in Japan

SINGAPORE (June 24): CGS-CIMB Securities continues to rate Genting Singapore (GENS) at “add” with an unchanged target price of $1.06.

With several upcoming urban and regional integrated resort (IR) in Japan, many gaming players are eager to secure these opportunities.

"We think Japan’s IR Basic Policy would be introduced by end-FY19 at earliest," says analyst Cezzane See.

So far, Osaka has called for a request for concept (RFC) in April and Yokohama has issued its request for information (FRI) in 4Q18 and GENS has participated in both.

Frasers Centrepoint Trust kept at 'buy' by DBS on strategic transformation

SINGAPORE (June 24): DBS Group Research is reiterating its “buy” call on Frasers Centrepoint Trust (FCT) with a higher target price of $2.85, from $2.60 previously.

Currently, all of FCT’s properties are suburban malls, which have shown to be resilient across market cycles.

However, DBS is positive on FCT’s acquisition of stakes in PGIM’s AsiaRetail fund and Waterway Point as this should transform the group’s growth profile entirely.

With its DPU expected to grow at a 2.8% CAGR over FY18-21, FCT will now count among the fastest-growing REITs.

Silverlake Axis on track for solid FY19, says RHB

SINGAPORE (June 20): RHB Research is keeping Silverlake Axis as its top pick in Singapore and in the technology sector, as the digital economy solutions and services provider stays on track to finish the year on a high.

“With improving fundamentals and strong earnings growth as of 9M19, Silverlake Axis is on track to record a robust FY19,” says lead analyst Jarick Seet in a Wednesday report.

“We expect the sturdy growth in earnings and margins to continue into 4Q19, as it continues to execute the major Malaysian core banking contract,” he adds.

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