OCBC Investment Research

Analysts mixed on Singtel as Bharti provision mars 2Q results

SINGAPORE (Nov 19): Analysts are divided in their views on Singapore Telecommunications, after the telco sank to its first-ever quarterly loss.

For 2QFY2020 ended Sept 30, Singtel posted a loss of $668 million, on the back of its share of Bharti Airtel’s provision for license and spectrum fees.

See: Bharti Airtel provision sends Singtel $668 mil into the red

Merger ticks all the right boxes for OUE Commercial REIT, but analysts remain cautious

SINGAPORE (Nov 19): OUE Commercial Trust (OUECT) seems poised to thrive on its recent merger with OUE Hospitality Trust (OUEHT), which appears to have ticked all the boxes for the REIT. 

OUECT’s latest set of financial results for 3Q19 ended September saw it register increases across several key financial metrics. 

Analysts divided as DBS beats estimates with 'solid' 3Q

SINGAPORE (Nov 12): Analysts are divided on DBS Group Holdings. 

On the one hand, the bank – Southeast Asia’s largest – clocked a “solid” quarter in 3Q19, soundly beating analysts’ estimates. But, on the other hand, some market watchers warn DBS could face headwinds from margin weakness and uncertainties in Hong Kong.

DBS saw its 3Q19 earnings jump 15% y-o-y to $1.63 billion, as total income for the quarter grew 13% to a new high of $3.82 billion on the back of loan growth, record fee income and higher trading gains. 

ST Engineering gets 4 'buys' as aerospace, order book continue to soar

SINGAPORE (Nov 12): Analysts are buoyant on ST Engineering, as the technology, defence and engineering conglomerate posted 3Q19 earnings in line with expectations on the back of record-high revenue.

For 3Q19 ended September, STE saw its revenue jump 27% to $2.07 billion – the highest year-on-year growth in over a decade.

The revenue surge was driven by Aerospace revenue, which soared 53% y-o-y to $1.1 billion on the consolidation of its recently acquired Middle River Aircraft Systems (MRAS), as well as revenue recognised from various end-of-programme reviews.

Analysts favour super-sized CapitaLand as 3Q operating PATMI jumps 18.8%

SINGAPORE (Nov 6): Analysts are keeping their “buy” calls on property giant CapitaLand, on the back of bullish sentiments following its recent merger with Ascendas-Singbridge (ASB) and robust capital recycling efforts.

“CapitaLand’s competitive advantage is its significant asset base and extensive market network, which has been further boosted following the completion of the Ascendas-Singbridge merger,” says OCBC Investment Research in a Nov 6 report.

The brokerage is maintaining its “buy” recommendation, and raising its fair value estimate by 9.4% to $4.42.

Analysts turn bullish on StarHub as potential catalysts could ease earnings pressures

SINGAPORE (Nov 6): Analysts from two research houses – DBS Group Research and CGS-CIMB Research – are upgrading StarHub to “buy”, from “hold” previously, following the telco’s 3Q results announcement.

The optimism comes on the back of views that StarHub’s earnings pressures have already been priced in, while its enterprise and wireless segments could provide potential catalysts for the counter.

Year to date, shares in StarHub had slid nearly 24% to close at $1.32 on Nov 5, before the release of its results.

Ascendas REIT gets a lift as it eyes maiden entry into US market

SINGAPORE (Nov 4): OCBC Investment Research is keeping it’s “hold” call but raising its fair value estimate for Ascendas Real Estate Investment Trust by over 9% to $3.25 on the back of strong long-term prospects from an enlarged scale.

Already the largest listed industrial REIT on the Singapore Exchange based on asset size and market capitalisation, Ascendas REIT on Nov 1 announced the proposed acquisition of a portfolio of 30 business park properties from CapitaLand for $1.66 billion.

Raffles Medical likely to remain range-bound as it finds its footing in China, analysts say

SINGAPORE (Oct 31): Analysts are maintaining their “hold” recommendations on Raffles Medical Group (RMG), after the group posted a 16.9% drop in 3Q19 earnings on the back of gestation losses for its new hospital in Chongqing, China.

Earnings for the 3Q19 ended September fell to $13.6 million, despite a 7.8% rise in revenue to $130.5 million.

Analysts lament Starhill Global REIT's weak growth outlook despite 1Q results in line with expectations

SINGAPORE (Oct 31): Market watchers say Starhill Global Real Estate Investment Trust (SGREIT) lacks growth visibility, despite turning in a set of 1Q19/20 results that were in line with consensus expectations.

SGREIT posted distribution per unit (DPU) of 1.13 cents for the 1Q19/20 ended September, some 1.7% lower than DPU of 1.15 cents a year ago.

MNACT offers attractive risk-reward as it stands firm amid Hong Kong unrest, says OCBC

SINGAPORE (Oct 30): OCBC Investment Research believes Mapletree North Asia Commercial Trust (MNACT) will remain resilient, amid the ongoing political unrest in Hong Kong.

Rental income from Festival Walk property in Hong Kong accounted for 61.6% of MNACT’s portfolio net property income in the 2Q19/20 ended September.

Notably, the shopping centre in Kowloon Tong, Hong Kong, recorded committed occupancy at 100%.

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