Sheng Siong Group: No new stores not a concern
Although 3Q13 is coming to a close, we are unconcerned by the lack of
new store additions by Sheng Siong Group (SSG). While this development
means that SSG will be unable to achieve its 10% gross floor area target
for the year, the group should still experience decent top-line growth
for 3Q13 from full-quarter contributions of new stores added last year.
Furthermore, expected margin stability and a conducive macro environment
– more dining-in of consumers and relatively subdued supermarket
competition – provide price support for SSG’s share price at current
levels. Favouring the counter for its defensive qualities and healthy
balance sheet, we maintain BUY with a slightly lower fair value estimate
of S$0.78 (S$0.80 previously). A potential catalyst for the counter
exists in the form of its pilot e-commerce initiative, which is likely
to commence in 4Q13. (Lim Siyi)
MORE REPORTS
CapitaRetail China Trust: Outcome of Distribution Reinvestment Plan
CRCT has announced that ~6.0m new CRCT units have been allotted and
issued at an issue price of S$1.447 per unit to eligible unitholders of
CRCT who have elected to participate in the Distribution Reinvestment
Plan in respect of the distribution of 4.69 cents per unit for 1H13. The
new units will commence trading on the SGX-ST today. With the issue of
the new units, the number of issued units has increased by ~0.8% to
756,140,024. Since 3Q13 results will be announced soon, we will hold off
on adjusting our model for this development. We maintain our fair value
of S$1.58 FV and BUY rating on CRCT. (Sarah Ong)
Lippo Malls Indonesia Retail Trust: S$150m of notes issued under MTN programme
Lippo Malls Indonesia Retail Trust (LMIRT) has priced S$150m 4.25% notes
due 2016. The notes will be issued under its S$750m Guaranteed Euro
Medium Term Note Programme. The fundraising does not come as a surprise
since management had indicated during the 2Q13 analyst conference call
that LMIRT may refinance the S$147.5m term loan due June 2014 as early
as late 2013. We maintain our DDM-based FV of S$0.44 on LMIRT and HOLD
rating for now. (Sarah Ong)
For more information on the above, visit www.ocbcresearch.comfor the detailed report.
NEWS HEADLINES
- US stocks dropped on Wed, with the S&P 500 index recording its
longest decline since Dec, as a possible government shutdown overrode
better-than-forecast economic reports.
- The wealthy in the Asia Pacific trust their wealth managers more than
high net worth individuals in the rest of the world, a wealth report has
found.
- OUE Limited is mulling over establishing yet another REIT to be listed on the Main Board of SGX.
- Asiaphos Limited, a Singapore-based explorer and miner of phosphate in
China, hopes to raise about S$24.4m in an IPO on the Catalist board.
- Asia Fashion Holdings assured the market that a RMB461.5m (S$94.6m)
compensation it is making to customers will not render the company
"insolvent immediately".
- OKH Global has entered into a placement agreement in which it will issue up to 60m new ordinary shares at 68 S cents apiece.
No comments:
Post a Comment