BUY call and target price of S$0.87. Forward yield of
7.7%-8.6% one of the highest amongst the S-REIT
space.
For the STI, an initial dip that probed the 3200 immediate
support earlier this week resulted in a minor 30pt rebound
but that has since been given back. With US hitting its debt
ceiling by 17 Oct, the postponement of QE tapering to a later
date and a likely lack lustre 3Q results season, it is possible
for STI’s current consolidation off the 3200 level to dip lower
to 3175 but not exceeding 3140 where better support
emerges.
We are initiating coverage on Soilbuild Business Space REIT
(SB REIT) with a BUY call and target price of S$0.87. SB REIT
offers exposure into a modern portfolio of business
park/industrial properties in Singapore with a valuation of
S$935m. Compared to existing industrial S-REITs, its portfolio
is the youngest, with an average age of 3.1 years (by GFA),
backed by long land lease tenure of c.51 years. SB REIT will
derive 42-43% of its net property income from master
leases, with tenures ranging from 5-15 years, and this will
offer strong income visibility to the REIT. At a FYP13F-15F
yield of 7.7%-8.6%, SB REIT offers one of the highest yields
amongst the S-REIT space, which is attractive.
Yangzijiang Shipbuilding has launched its first ever 10,000
TEU containership from its Jiangsu New Yangzi Shipbuilding.
This is also the first ever Chinese yard to have secured orders
for the 10,000 TEU containerships. As at current date, the
Group has 11 of such vessels on the order book and also
there are options for 14 more. This reiterates the Group’s
ability to scale up the value chain with securing orders and
building higher capacity eco-friendly vessels.
OUE is considering yet another real estate investment trust
(Reit). The company is "exploring the establishment" of a
commercial Reit to be listed on the main board. OUE said
that the proposed Reit's initial portfolio is expected to include
OUE Bayfront - its 18-storey flagship office building at Collyer
Quay - along with the building's ancillary properties
comprising a tower building used for a food and beverage
outlet and a link bridge with retail shops. Other commercial
properties owned by Lippo China Resources Limited (LCR) are
also being considered for acquisition by the proposed Reit.
US Indices Last Close Pts Chg % Chg
Dow Jones 15,273.3 (61.3) (0.4)
S&P 1,692.8 (4.7) (0.3)
NASDAQ 3,761.1 (7.2) (0.2)
Regional Indices
ST Index 3,208.6 (3.2) (0.1)
ST Small Cap 582.0 1.9 0.3
Hang Seng 23,209.6 30.6 0.1
HSCEI 10,598.2 (1.0) (0.0)
HSCCI 4,436.3 1.4 0.0
KLCI 1,784.1 (8.4) (0.5)
SET 1,436.9 19.1 1.3
JCI 4,406.8 (53.6) (1.2)
PCOMP 6,420.4 (41.0) (0.6)
KOSPI 1,998.1 (9.0) (0.5)
TWSE 8,283.9 (15.2) (0.2)
Nikkei 14,620.5 (112.1) (0.
STI
Total Market cap (US$bn) 591
Total Daily Vol (m shrs) 9,496
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
25 Sep
Target Price
($)
ST Engineering Buy 4.250 4.80
ComfortDelgro Buy 1.945 2.19
OCBC Bank Buy 10.440 12.40
Singapore Airlines Buy 10.440 11.40
Suntec REIT Buy 1.690 1.78
Stock Picks – Small /Mid Cap
Rec’n Price ($)
25 Sep
Target Price
($)
Ezion Holdings Buy 2.370 3.20
Goodpack Buy 1.720 2.00
CSE Global Buy 0.900 1.07
Mapletree Commercial Trust Buy 1.200 1.35
CDL Hospitality Trust Buy 1.640 1.80
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
Rowsley announced that the proposed acquisition of RSP
Architects Planners & Engineers and the proposed land
acquisition were completed. A total of 3.26bn consideration
shares issued at an issue price of S$0.150 per share will be
listed on 27 September but will be placed under a separate
temporary stock counter (Counter Name: Rowsley A, Stock
Code: T4A) until the Books Closure Date (3 October 2013) as
they are not entitled to the warrants under the proposed
bonus issue.
Internet Technology Group is proposing a voluntary delisting
from SGX. The exit offer price for each share is S$0.127 in
cash, representing approximately a 24.5% premium over last
traded price. The rationale for the delisting include: 1) Access
to Capital Markets No Longer Required; 2) Eliminate costs; 3)
Management Flexibility and 4) Low Trading Liquidity.
OKH Global is placing up to 60m new shares at a placement
price of S$0.68 per share. The placement price represents a
discount of approximately 8.36% to the last weighted
average price. The estimated net proceeds of about S$39.5m
will be used mainly to fund potential acquisitions,
investments and business expansion plans in connection with
the Group’s business.
The global investor confidence index (ICI) fell to 101.4 points
this month, down 3.5 points from last month's revised
reading of 104.9, the latest findings by State Street Global
Exchange have revealed. The decline was mostly driven by
sentiment in North America, where the figure fell 7.6 points
to 104.5 from August's revised reading of 112.1. European
confidence rose 4.7 points to 101.7, while Asian confidence
rose 2.1 points to 95.3 for the month.
Casino entry levy purchases and the amount of levies
collected have been dropping annually, due to the casino
novelty factor wearing off and the impact of social
safeguards including exclusion orders, and more recently,
casino visit limits to curb problem gambling. The Casino
Regulatory Authority disclosed that Singaporeans and
permanent residents forked out $174m in casino entry levies
in 2012. That's down from $195m in 2011 and $216m in
2010.
In property news, Serangoon Plaza in Little India has been put
up for collective sale at an indicative price range of between
$360m and $368m. The indicative price range translates to
between $1,751 psf ppr and $1,790 psf ppr. Over in
Clementi, Cityvibe mall has been put on the market with an
asking price above $130m.
US markets fell as investors once again weighed on whether
a looming government shutdown will hamper economic
growth. The Senate will likely vote on a stopgap spending bill
only this weekend that leaves the house just 1 full working
day to act before the Federal government’s spending
authority ends on Oct 1st. The 10-yr treasury yield dipped to
2.61%.
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