Today’s Focus
Mapletree Logistics Trust - 4Q14 results slightly above
estimates, ample firepower to execute on inorganic
opportunities. Maintain BUY, target price raised to S$1.20
4Q14 results for Mapletree Logistics Trust (MLT) slightly above
estimates. Portfolio occupancy levels maintained steady at
98.3%. Distributable income came in 10.1% higher at
S$46.3m, boosted by a lower interest rate of 1.9%. NAV up by
5.4% to S$0.97; gearing down to 33%. The lower gearing
empowers MLT to execute on inorganic opportunities. Maintain
BUY, target price raised to S$1.20 (Prev S$ 1.16) as we roll
forward our valuations.
4Q14 results for Mapletree Industrial Trust (MLT) ahead of
estimates. MLT reported DPU of 2.51 Scts in 4Q14, bringing its
full-year DPU to 9.92 Scts. 4Q14 revenues and net property
income grew by c.4.2% and 7.5% to S$75.2m and S$53.3m
respectively. The stronger performance was largely organic-led
with positive rental reversions achieved portfolio-wide.
Distributable income came in 9.5% higher y-o-y at S$42.6m,
driven mainly by lower all-in interest costs of c. 2.0% (vs 2.3%
a year ago). More updates post briefing today. Target price of
S$1.50 and BUY call under review.
Frasers Centrepoint Trust (FCT) reported 2Q14 revenue of
S$41m (+3% yoy), net property income of S$29m (+2%) and
distribution income of S$24m (+7%). In terms of operations,
portfolio occupancy rate fell slightly to 96.8% as Bedok Point’s
occupancy rate dipped to 77%. However this was largely a
result of tenant refitting and refurbishment works at the
basement, and occupancy rates in the coming quarters should
improve to >95%, based on committed leases. We like FCT for
its ability to grow revenues via organic rental reversions as well
as inorganic acquisitions from its Sponsor, which has a strong
and visible pipeline of assets currently development. Our
current target price of S$2.13 is under review, pending the
analyst briefing.
SATS’ aviation operating data for 4Q and FY14. In the fourth
quarter of FY14, the number of flights handled by SATS grew
6.7% year-on-year while unit services increased by 3.2%.
Cargo throughput improved 4.4%, with express cargo and
perishable segments recording the highest year-on-year
growth. Passengers handled rose marginally to 10.53 million.
Gross and unit meals declined 8.2% and 6.3% respectively due
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STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
100-Day MA
Index
STI
Total Market cap (US$bn) 605
Total Daily Vol (m shrs) 2,264
12m ST Index High 3,454
12m ST Index Low 2,960
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price (S$)
22 Apr
Target Price
(S$)
ComfortDelgro Buy 2.070 2.19
Global Logistic Properties Buy 2.740 3.31
Keppel Corp Buy 11.010 12.60
Stock Picks – Small Cap
Rec’n Price (S$)
22 Apr
Target Price
(S$)
Goodpack Buy 2.370 2.60
China Merchants Buy 0.960 1.32
Pacific Radiance Ltd Buy 1.065 1.20
Nam Cheong Buy 0.355 0.46
Centurion Corporation Buy 0.745 0.86
Source: DBS Bank
Singapore
Wired Daily
Page 2
primarily to Qantas Airways moving its hub for European
flights away from Changi. For the full year, all operating
metrics achieved broad-based growth with the exception of
gross and unit meals.
Global Logistic Properties has signed two lease agreements
totaling 38,000 sqm (409,000 sq ft) with RT-Mart, one of
the largest hypermarket operators in China. The customer is
expanding its distribution network throughout China to
meet increasing demand driven by the growth of domestic
consumption. The two locations are at GLP Park Qihe in
Greater Jinan and GLP Park SND in Suzhou. GLP Park SND is
now 100% leased.
Centurion announced the sale of its Australian optical disc
operation for A$650K. Against a net book value of A$88k
for the asset as at 31 Dec 2013, we estimated a small divest
gain of around A$500k. More importantly, this disposal is in
line with the company's plan to scale down its optical disc
operation which structurally declining. This development is
positive but financially immaterial. No change to BUY rating
and target price of S$0.86.
Yoma Strategic Holdings has entered into a joint venture
agreement with Mitsubishi Corporation and First Myanmar
Investment for the purposes of establishing a joint-venture
company to provide the technical services and solutions,
installation, testing and commissioning and import and
supply of elevators, escalators and related products in
Myanmar.
Yanlord Land Group has successfully formed a joint venture
company with Haimen City in Jiangsu to develop 10 km2
Eco Hi-Tech City. This latest venture capitalizes on the close
collaboration and relationship between Jiangsu and
Singapore and builds on Yanlord’s earlier success in
developing the 15 km2 Sino-Singapore Nanjing Eco Hi-Tech
Island in Nanjing.
Ley Choon Group has recently secured three contracts
worth S$7.3m to undertake the water pipe/main laying
works for the Group’s long-term customer, the Public
Utilities Board (PUB). The Group is poised to benefit from
the growing underground utilities construction demand in
Singapore and the region.
Tritech Group has been awarded a S$9.96m contract for
the Instrumentation and Monitoring for Thomson Line
contracts by the Land Transport Authority (LTA) for the
Thomson Line. The contract includes supplying and
installing geotechnical instruments and monitoring ground
movements within the surrounding excavation and
construction area.
Private home purchases in Singapore fell across the board in
the first three months of this year to 2076 units - the first
time in more than five years that the number has dropped
below 3,000 homes. However, foreigners' share of
transactions edged up because of a sharper pullback by
Singaporean buyers. Singaporeans' share - at 70% - is at its
lowest since the introduction of the additional buyer's
stamp duty (ABSD) in Q4 2011. In absolute terms, purchases
by permanent residents (PRs) and foreign buyers were also
at their lowest levels since the Q1 2009 market trough
during the global financial crisis.
US stocks rose as health-care shares surged amid a
US$45.7bil bid for Allergan Inc. and earnings from Netflix
Inc. to Harley-Davidson Inc topped estimates. McDonald’s
Corp shares dipped after the company posted falling sales
at its established U.S. locations and 1Q profit trailed
consensus estimates. In after hours trade, AT&T reported
earnings that beat estimates as phone discounts Diminished.
In Asia, preliminary estimates for the April HSBC China
manufacturing PMI will be released this morning (consensus
48.3).
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