Religare Health Trust - Weak INR to dampen FY15F
DPU. Downgrade to HOLD, TP revised down to
S$0.81
SIA - Results unexciting but value remains attractive.
Maintain BUY and S$11.40 TP
Noble Group – Earnings set to bottom out next
quarter in the absence of Agriculture and Yancoal
losses. Maintain HOLD, TP lifted to S$1.15
2Q14 DPU of 2.06 Scts for Religare Health Trust within
expectations; 1H14 DPU of 4.05 Scts forms c.51% of
forecasts. Operations trending well with overall occupancy
up. However, weak INR is a key dampener to FY15F DPU,
assuming INR55/SGD, c.11% lower from our previous
assumption. Downgrade to HOLD, TP revised down to
S$0.81 (Prev S$0.94) on weaker INR.
Singapore Airlines’ 2QFY14 net profit improved 78% y-oy
to S$161m and is on track to meet our full year forecast.
The mild improvement in core passenger and cargo
businesses is due to lower costs. Interim DPS of 10Scts
was declared, vs 6Scts last year. Maintain BUY and
S$11.40 TP
3Q13 core profit for Noble Group rebounded to
US$120m, excluding losses from Yancoal. The agriculture
segment returns to profit. Noble’s earnings are set to
bottom out next quarter in the absence of Agriculture and
Yancoal losses. FY13 earnings revised down but TP lifted
to S$1.15 (Prev S$ 0.93) as we roll over valuation to
FY14F. Maintain HOLD.
Results for City Developments in line, residential profit
recognition and leasing income supporting bottomline.
The Group is growing new platforms to mitigate declining
landbank in Singapore. It would continue to focus on
building its overseas development strategies such as the
28 Pavilion Rd in Knightsbridge. Maintain Hold with a
slightly lower TP of S$11.09 (Prev S$ 11.24).
3Q13 results for Pan-United Corporation in line; earnings
growth helped by lower costs. The muted earnings
growth is attributed to subdued construction activities this
year. Infrastructure outlook remains positive while
construction pipeline remains robust. Maintain BUY and
S$1.21 TP.
US Indices Last Close Pts Chg % Chg
Dow Jones 15,750.7 (32.4) (0.2)
S&P 1,767.7 (4.2) (0.2)
NASDAQ 3,919.9 0.1 0.0
Regional Indices
ST Index 3,180.3 (6.5) (0.2)
ST Small Cap 537.4 (1.9) (0.4)
Hang Seng 22,901.4 (168.4) (0.7)
HSCEI 10,561.6 (21.3) (0.2)
HSCCI 4,443.7 (45.6) (1.0)
KLCI 1,794.8 (9.4) (0.5)
SET 1,413.1 7.2 0.5
JCI 4,380.6 (61.1) (1.4)
PCOMP 6,324.2 58.9 0.9
KOSPI 1,995.5 18.2 0.9
TWSE 8,195.3 12.7 0.2
Nikkei 14,588.7 318.8 2.2
STI Index Performance
Singapore
Total Market cap (US$bn) 588
Total Daily Vol (m shrs) 2,102
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price ($)
12 Nov
Target Price
($)
Hutchison Port Holdings Trust Buy 0.715 0.82
ComfortDelgro Buy 1.89 2.19
OCBC Bank Buy 10.39 12.40
Singapore Airlines Buy 10.25 11.40
Stock Picks – Small /Mid Cap
Rec’n Price ($)
12 Nov
Target Price
($)
Ezion Holdings Buy 2.08 2.60
CSE Global Buy 0.955 1.07
Frasers Centrepoint Trust Buy 1.81 2.14
Yoma Strategic Holdings Buy 0.735 1.02
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
Asian Pay Television Trust’s (APTT) 9M13 asset EBITDA of
S$150.3m was in line and comprised 75.0% of its FY13F
guidance. APTT confirms plans for expansion into Greater
Taichung area; but didn’t give details citing competitive
reasons. We lower our TP to S$0.91 (Prev S$0.97), assuming
additional capex of S$80-100m in the long term. BUY for
~10.7% yield - highest among business trusts listed in
Singapore and HK.
2Q14 results for Biosensors below; stent sales and licensing
revenue disappoint and margins weaken. We believe outlook
for BIG will remain soft as we see margins trending down
from the weak pricing environment and poorer sales mix.
Management has also revised their revenue guidance for
FY14F from 15% growth to moderately positive. Our analyst
has cut FY14F/FY15F earnings by 30%/38%. Maintain HOLD,
TP reduced to S$0.94 (Prev S$ 1.09).
First Resources reported 3Q13 net profit of US$51.4m (-20%
y-o-y; +36% q-o-q) - above our expected range of US$38-
40m. This brought 9M13 earnings to US$152.7m -
representing 76% of our full year forecast. The better-thanexpected
performance was due to 22% q-o-q jump in
plantations revenue as well as 17% q-o-q rise refining and
processing revenues. Our forecasts and TP of S$2.14 are
under review, pending management inquiries and further
analysis.
Golden Agri booked 3Q13 core earnings of US$30.2m (-33%
q-o-q, -65% y-o-y) - significantly below our expected range
of US$108-113m. The poor results were mainly due to
US$2m loss in China operations as a result of poor crushing
margins, lower CPO and c.14% sequential drop in sales
volume. We cut FFB output forecasts given the lower
guidance; but have raised CPO ASP by 4-6%; given better
than expected 9M13 ASP. FY13F/FY14F/FY15F earnings were
hence cut by 24%/9%/9% to US$263.8m / US$386.9m /
US$500.1m, respectively. The fair value of the stock is now
S$0.46 (Prev S$0.48). Counter is NOT RATED.
Courts’ 2Q14 results below expectations, revenue grew 3%
to S$223m but earnings declined 55% to S$7.2m. 1H14
earnings now account for only 34% of our full year estimate.
The surprise came from worse than expected Malaysia same
store sales and much lower gross margins. Our current Buy
call and S$1 TP are under review. Will provide more updates.
Elektromotive has signed an agreement to acquire 51%
equity stake in Asia Galvanizing Pte Ltd (AGPL) for S$7.65m.
The purchase consideration will be satisfied by cash of
S$3.6m and allotment of 162m new shares at S$0.025 per
share. AGPL recorded unaudited net profit after tax of
approximately S$1.5m and net tangible asset value of
S$3.9m for 11 months ended 31 August 2013. AGPL
provides high quality hot dip galvanizing services to the
building & construction, marine offshore and general steel
fabrication industries. The proposed acquisition is expected to
strengthen to the Group's performance.
Technics Oil and Gas has been awarded the 2nd leasing
contract and outright sales contract worth a total of S$10.1m
for 9 reciprocating gas compressor engine driven packages
from Indonesia and Malaysia.
A hotel site at Havelock gets top bid of $30.1m, or
$1,303.24 psf. I Hotel put in the highest bid among nine
valid offers, 6.6% more than the next highest offer of
$28.09m, or $1,216.62 psf ppr. The market was expecting
the winning bid at between $920 and $980 psf ppr
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