KEY IDEA
Genting Singapore: Strong FY14 start - upgrade to BUY
Genting Singapore (GS) made a strong start to FY14, with 1Q14 revenue
jumping 24% YoY to S$828.8m, while NPAT surged 97% to S$228.5m, aided by
better-than-expected win percentages. However, outlook for the rest of
2014 remains somewhat more cautious, with the mass market segment likely
to remain quite stagnant; also expects the VIP segment to be quite
dependent on the geopolitical events in Asia, especially the slower
Chinese economy and upcoming Indonesian presidential election.
Separately, GS updated that its expansion is on track – Jeju IR should
start construction in Jul and its Jurong hotel is due for a soft opening
in mid 2015. While our DCF-based fair value remains unchanged at
S$1.43, we are upgrading our call to BUY on valuation ground, given the
recent pullback in share price. (Carey Wong)
MORE REPORTS
OUE Hospitality Trust: Bolstered by hotel revenue
OUE Hospitality Trust’s (OUEHT) 1Q14 DPS of 1.68 S cents was 4.3% higher
than its prospectus forecast and above our expectation. However, RevPAR
of S$248 fell short of its prospectus forecast of S$257 due to lower
revenue from transient guests segment. Compared to pro forma 1Q13 RevPAR
of S$251, we note that RevPAR was slightly down by 1.2% due to lower
room inventory as a result of ongoing renovation. Excluding this impact,
1Q14 RevPAR would have been higher at S$252. OUEHT disclosed that it
has completed the refurbishment of a total of 64 guest rooms out of the
430 guest rooms to be renovated, and that the renovation programme is on
track to complete in phases by end 2015. For the rest of 2014,
management remains positive on the corporate travel, tourism and retail
segments in Singapore. We raise our fair value from S$0.82 to S$0.85
after factoring in the better results. Maintain HOLD. (Kevin Tan)
Lippo Malls Indonesia Retail Trust: Another miss in 1Q14
Lippo Malls Indonesia Retail Trust (LMIR Trust) reported a dismal set of
1Q14 results, with gross revenue falling 14.5% YoY to S$33.7m and NPI
down 16.6% to S$31.1m. The soft performance was mainly due to the loss
of rental guarantee income from Pluit Village and a 15.8% depreciation
of IDR against SGD. While we note that underlying portfolio performance
has been encouraging, with gross rental income in IDR terms growing 6.3%
YoY and portfolio occupancy improving 1.8ppt to 95.6%, DPU for the
quarter missed both ours and the street’s expectations. Specifically,
DPU eased 23.6% YoY to 0.68 S cents, meeting only 18.7%/21.3% of
our/consensus FY14 DPU forecasts. We will be participating in the
analyst briefing later in the morning to get more details on its
outlook. For now, we place our Hold rating and S$0.39 fair value UNDER
REVIEW.(Kevin Tan)
SIA Engineering: FY14 results in-line
SIA Engineering Company's (SIAEC) FY14 results came in within our
expectations. FY14 revenue increased 2.7% from S$1.15b to S$1.18b,
forming 101.4% of our forecast. However, lower margins resulted in PATMI
declining 1.6% to S$266m, making up 99.1% of our forecast. The S$44.0m
increase in expenditure (+4.3%) came mainly from higher staff costs,
sub-contracting and material costs. This is partly compensated by
associates’ and JVs’ share of profits increasing steadily by 8.3% to
S$162.6m, representing 61% of the SIAEC’s net profit. The main
contributors were the engine repair and overhaul centres which accounted
for S$125.0m. We maintain HOLD on SIAEC but keep our FV estimate of
S$4.77 under review pending an analyst briefing later. (Yap Kim Leng)
Biosensors International Group: Approval for U.S. trial for BioFreedom™
Biosensors International Group (BIG) announced last evening that it has
received conditional Investigational Device Exemption (IDE) approval
from the U.S. Food and Drug Administration (FDA) for a U.S. based
clinical trial of its next-generation BioFreedom™ polymer-free
drug-coated stent (DCS) system. The trial will enrol 100 patients and is
designed to collect additional safety and effectiveness data and to
support a future pivotal IDE study. This is a positive for BIG as it is
its first U.S. based clinical study of a stent. We believe the U.S. is
the largest market for drug-eluting stents, with an estimated market
value of ~US$2b. However, it will take time for BIG to establish data
from the trial to aptly evaluate BioFreedom™’s efficacy and safety. For
now, we maintain our SELL rating on BIG with a fair value estimate of
S$0.77. (Wong Teck Ching Andy)
For more information on the above, visit www.ocbcresearch.comfor the detailed report.
NEWS HEADLINES
NEWS
- US stocks closed higher on Mon, as investors shrugged off earlier
worries over the slowing economy in China and deteriorating situation in
Ukraine.
- Singapore's factories were the busiest they have been in six months,
with the latest purchasing managers' index (PMI) rising to 51.1 in Apr -
a level not seen since Oct last year.
- Asian Pay Television Trust reported 1Q14 revenue of S$77.2m and asset
EBITDA of S$49.8m. The trust reaffirmed its distribution guidance of
8.25 S cents per unit for FY14.
- Forterra Trust's 1Q14 loss attributable to unitholders narrowed 38.6% YoY to S$10.4m.
- OKP Holdings posted a 55.1% YoY decline in net profit to S$1.07m for 1Q14, despite a 13.7% increase in turnover.
- 22 strata office units at Parkway Centre in the Marine Parade Central area have been put on the market at S$1,700-S$1,800 psf.
No comments:
Post a Comment