Tuesday, April 22, 2014

DBSVickers Report 22 Apr 14

Today¡¦s Focus
„X Ascendas REIT - 4QFYMar14 results in line. Maintain BUY,
target price raised to S$2.47
„X Mapletree Greater China Commercial Trust - Reported
another strong quarter; FY Mar14 results beat forecasts.
Maintain BUY, target price raised to S$1.02
4QFYMar14 results for Ascendas REIT in line. 4Q14 DPU of
3.55 Scts (+5.3% y-o-y) brings DPU for the full year to 14.2
Scts, within our estimates. Steady organic growth, underpinned
by positive rental reversions, is expected to compensate for
margin pressure. Visible pipeline and proposed acquisition of
Aperia in 1QFY15 to drive growth. Maintain BUY, target price
raised to S$2.47 (Prev S$ 2.44). A-REIT¡¦s is expected to offer
steady and resilient earnings.
Mapletree Greater China Commercial Trust (MAGIC) reported
another strong quarter. FY Mar14 results were ahead of
prospectus forecast on better than projected rental uplift.
Portfolio occupancy inched up to 98.5% from 97.9% in the
previous quarter with higher take ups at Gateway Plaza while
Festival Walk continued to enjoy full occupancy. Strong and
visible organic growth are expected to drive bottomline going
forward. Maintain BUY, target price raised to S$1.02 (Prev S$
0.97). We continue to like MAGIC for its strong organic growth
prospects and portfolio of quality assets. The stock is currently
trading at FY15 and FY16 DPU yields of 6.8% and 7.3%
respectively.
Mapletree Logistics Trust (MLT) reported a DPU of 1.89 Scts in
4Q14, bringing full year DPU to 7.34 Scts, slightly beating our
estimates. Operational performance continues to remain
resilient with topline and net property income rising by 5.7%
and 4.3% to S$80.1m and S$68.3m respectively. Portfolio
occupancy levels also maintained steady at 98.3%.
Distributable income came in 10.1% higher at S$46.3m,
boosted by lower interest rates of 1.9%. More updates to
come post briefing. Target price of S$1.16 and BUY call under
review.
US Indices Last Close Pts Chg % Chg
Dow Jones ƒ¥ƒn 16,449.3 40.7 0.2
S&P ƒ¥ƒn 1,871.9 7.0 0.4
NASDAQ ƒ¥ƒn 4,121.5 26.0 0.6
Regional Indices
ST Index ƒ¥ƒn 3,255.8 2.0 0.1
ST Small Cap ƒ¦ƒn 547.3 (0.5) (0.1)
Hang Seng ƒ¥ƒn 22,760.2 64.2 0.3
HSCEI ƒ¥ƒn 10,080.2 44.3 0.4
HSCCI ƒ¥ƒn 4,249.3 9.0 0.2
KLCI ƒ¥ƒn 1,862.9 10.2 0.6
SET ƒ¥ƒn 1,413.1 3.9 0.3
JCI ƒ¦ƒn 4,892.3 (4.Cool (0.1)
PCOMP ƒ¥ƒn 6,767.5 96.3 1.4
KOSPI ƒ¦ƒn 1,999.2 (5.1) (0.3)
TWSE ƒ¦ƒn 8,951.2 (15.5) (0.2)
Nikkei ƒ¦ƒn 14,512.4 (3.9) (0.0)
ƒn
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
100-Day MA
Index
STI
Total Market cap (US$bn) 605
Total Daily Vol (m shrs) 1,852
12m ST Index High 3,454
12m ST Index Low 2,960
Source: Bloomberg Finance L.P.
Stock Picks ¡V Large Cap
Rec¡¦n Price (S$)
21 Apr
Target Price
(S$)
ComfortDelgro Buy 2.070 2.19
Global Logistic Properties Buy 2.730 3.31
Keppel Corp Buy 10.930 12.60
Stock Picks ¡V Small Cap
Rec¡¦n Price (S$)
21 Apr
Target Price
(S$)
Goodpack Buy 2.320 2.60
China Merchants Buy 0.965 1.32
Pacific Radiance Ltd Buy 1.065 1.20
Nam Cheong Buy 0.360 0.46
Centurion Corporation Buy 0.740 0.86
Source: DBS Bank
Singapore
Wired Daily
Page 2
Cosco Corp has secured a contract worth about US$100m
from an Asian company to build four (4) Emergency
Response / Rescue / Field Support Vessels (ERRVs) and two
(2) PX121 Platform Supply Vessels. The four (4) vessels are
scheduled for delivery in the first half of 2016 while the two
(2) vessels are expected to be delivered in the first and
second quarters of 2016. Contract wins have been rather
slow with YTD wins of only S$217m, representing 9% of
our full year assumption of US$2.5bn. This is significantly
lagging behind peers - Keppel Corp, Sembcorp Marine and
Yangzijiang, which have already secured US$1.5bn /
US$1.3bn / US$1.1bn new orders YTD.
Sembcorp Industries is reactivating Sembcorp Properties, a
dormant subsidiary which developed condominiums in
Singapore a decade ago, with a new strategy - to develop
residential and commercial properties in its existing
industrial parks, starting with China. This is in tandem with
its ramped-up efforts to build up urban development as a
third pillar of the company, next to its mainstay utilities and
marine operations.
IEV Holdings has entered into two separate Gas Sales
Agreements (GSAs) to supply compressed natural gas (CNG)
to two divisions of PT Indofood ¡V the Noodle Division and
the Nutrition & Special Food Division manufacturing plants
in Padalarang, Bandung for a period of 12 and 24 months
respectively. The revenue from the GSAs, which is in excess
of US$9m, is expected to contribute to the Group¡¦s financial
performance over the 2-year period from March 2014 to
February 2016.
Rowsley has received the regulatory greenlight for its first
residential development called SKIES in Johor Bahru. SKIES
comprises two 75-storey towers, each with approximately
500 units of residential apartments.
Hock Lian Seng Holdings has been awarded a contract from
Land Transport Authority for the construction of Maxwell
Station for Thomson Line. The contract sum is
approximately $221.8m. The project will commence in April
2014 and is expected to complete by December 2020.
Yongmao extends foray into Myanmar with S$3m worth of
contract wins. The contract wins came on the heels of the
Group¡¦s maiden delivery of tower crane to Myanmar in
January 2014. Under these new contracts, 10 units of the
Group¡¦s STT series of tower cranes are sold to Erect Group
(Singapore) for its end user in Myanmar. Based in
Singapore, Erect Group is a leading one-stop service
provider of access equipment and its business includes the
sales and rental of towercranes. Yongmao is expected to
deliver these 10 units in 2014/2015.
CCM Group has received a notice of termination on a
condominium in Balestier they are building. The contract
was terminated "on the grounds of alleged breaches of
contract". The company said it is seeking legal advice and is
evaluating the financial impact of this development. The
contract, secured on August 2011, was worth S$32.3m. It
was awarded by Orion-One Residential to CCM subsidiary
CCM Industrial.
Singapore¡¦s Land Transport Authority (LTA) has awarded
civil as well as electrical and mechanical contracts for the
Thomson and Eastern Region Lines worth almost S$1.15 bn.
The contracts include the construction of Mt Pleasant,
Stevens and Maxwell stations; and communications system,
signalling system and platform screen doors for the two
MRT Lines.
US markets rose on signs earnings are improving. This even
as Ukraine warned that Russia may use a fatal shootout in
the country¡¦s east as a pretext for invasion. More than 70%
of the S&P 500 member companies that have announced
results this season have beaten analysts¡¦ profit estimates,
this according to Bloomberg. Netflix gained more than 6
percent after markets closed as it reported better-thanprojected
sales, profit and subscriber growth. Pfizer Inc. held
informal, now-discontinued talks with AstraZeneca Plc
about buying the London-based maker of asthma and heart
drugs.

No comments:

Post a Comment