CGS-CIMB Research

ESR-REIT looks a promising investment, analysts say

SINGAPORE (Jan 27): Amid a subdued economic environment and a consolidation of portfolios through the merging of real estate investment trusts (REITs), ESR-REIT provides a good investment opportunity, analysts say.

With its 57 properties around Singapore, the REIT has a total gross floor area (GFA) of approximately 15.1 million sq ft and a net property value of $2.93 billion. These properties house some 328 tenants from business parks, high specs industrialisation, logistics and warehousing.

Analysts remain optimistic on Mapletree Logistics Trust amid stable 3Q, operational resilience

SINGAPORE (Jan 24): Amid macroeconomic uncertainties and increasing cautionary behaviour, Mapletree Logistics Trust (MLT) has spent some $0.4 billion over the first three quarters of FY20 to ensure that its portfolio remains resilient through the acquisition of seven logistics properties in Malaysia, Vietnam and China.  

With 143 properties currently, MLT’s diversified portfolio spans across eight Asian geographies, namely Singapore, Hong Kong, China, Australia, Malaysia, South Korea, Japan and Vietnam. 

Analysts raise hopes on Mapletree Industrial Trust following 3Q results

SINGAPORE (Jan 23): Analysts are raising their target prices on Mapletree Industrial Trust (MINT), after the REIT showed steady growth in its latest set of results, underpinned by its new revenue contributions from acquisitions and development projects.

Following the REIT’s results announcement on Jan 21, all three brokerage reports spotted by The Edge Singapore – by CGS-CIMB Research, Maybank Kim Eng Research, and OCBC Investment Research – saw higher fair values estimates for MINT. 

Keppel DC REIT likely to see higher DPU ahead on acquisition-led growth, says CGS-CIMB

SINGAPORE (Jan 22): Keppel DC REIT (KDCREIT) on Jan 21 reported a 20.4% increase in distributable income to unitholders to $31.5 million for 4QFY2019 ended December 2019, bringing full-year distributable income to $113.2 million for FY2019, some 17.8% higher than a year ago.

The increase was supported by the acquisitions of Keppel DC Singapore 4 (SGP4) and 1-Net North Data Centre (DC1), which were completed in 4QFY20019, as well as full year contributions from Keppel DC Singapore 5 and maincubes Data Centre in Offenbach am Main, Germany.

Venture's FY20 performance could be dragged by major customer's poor revenue guidance

SINGAPORE (Jan 15): Venture Corp’s performance this year could be dragged by a disappointing FY20 revenue guidance by US biotechnology equipment manufacturer Illumina – its major customer – according to CGS-CIMB Research.

CGS-CIMB notes that Illumina’s CEO recently guided that the latter’s revenue could grow 9% to 11% y-o-y, which is below analysts’ expectation of 12%.

The slower growth is due to lower shipments of genome sequencing equipment NovaSeq y-o-y, Illumina guided.

Still, CGS-CIMB notes that Illumina intends to launch new products this year.

Analysts keep positive outlook on Singapore banks as applications for digital bank licences close

SINGAPORE (Jan 8): Analysts remain bullish on Singapore banks, even as the Monetary Authority of Singapore (MAS) announced Tuesday that it has received 21 applications for new digital bank licences.

While MAS did not name the applicants, it said the new digital bank licences have attracted “strong interest from a diverse group of applicants”.

Seven groups had applied for the digital full bank (DFB) licences, while 14 others applied for the digital wholesale bank (DWB) licences.

Singapore has a total of two DFB and three DWB licences up for grabs.

6 top capital goods picks as sector stages earnings rebound

SINGAPORE (Dec 26): Capital goods – which are used in producing other goods, rather than being bought by consumers – are on the cusp of a “strong recovery” in earnings growth, market watchers say.

CGS-CIMB Research and RHB Group Research both have “overweight” ratings on the capital goods sector.

Notably, RHB has “buy” calls on all six capital goods counters under its coverage, including the three large-cap offshore and marine (O&M) stocks.

In particular, RHB lead analyst Leng Seng Choon favours Keppel Corporation as the top O&M pick.

Analysts expect brighter outlook even as exports fall for ninth consecutive month in November

SINGAPORE (Dec 18): Singapore’s non-oil domestic exports (NODX) contracted 5.9% year-on-year contraction in November – marking the ninth consecutive month of decline. But analysts are quick to highlight that it is not all doom and gloom for the city state’s economy. 

UOB Group analyst Barnabas Gan notes in a Tuesday report that this was the smallest decline in nine months, and had outperformed the market consensus of an expected 6.4% decline. 

CGS-CIMB retains 'overweight' stance on property sector as sales volume rallies

SINGAPORE (Dec 17): CGS-CIMB is keeping the Singapore property sector at “overweight” on the back of a 23% month-on-month increase in home sales recorded in November. 

In a flash note on Monday, the brokerage notes that November was an “active month” in terms of primary homes sales -  with some 1,148 units, excluding executive condominiums, changing hands over the course of the month. This translated into a sell-through rate of 1.55 times. 

Potential re-rating on the cards for Frasers' Singapore REITs amid proposed merger: CGS-CIMB

Potential re-rating on the cards for Frasers’ Singapore REITs amid proposed merger: CGS-CIMB

SINGAPORE (Dec 3): CGS-CIMB Research is staying positive on Frasers Logistics & Industrial Trust (FLT) and Frasers Commercial Trust (FCOT), after the respective managers on Monday announced a proposed merger to create an enlarged REIT with a total portfolio worth a total of $5.7 billion.

According to the managers, the enlarged REIT will have a market capitalisation of $4.2 billion and a free float of $3.0 billion, which would put it among the top 10 Singapore REITs.

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