Mapletree Industrial Trust – Rental reversion higher
than expected; maintain BUY, TP raised to S$1.44
STI’s pullback off 3235 that is modestly below our stated
3250 near-term resistance level yesterday is within
expectations. With earnings revision still in a downward
cycle, it is unlikely for the index to rise above the13.9x
(ave) FY14F PE level that is currently at c.3300. We keep
our view for STI to range within c.3150-3250 in the near
term before heading towards 3300 by year-end on the
assumption that the current reporting season turns out
benign with no major downward revision to FY14F
earnings forecast. For the current session/s, immediate
support is peg at 3193 or 3178.
2Q14 results for Mapletree Industrial Trust above
expectations. Operational performance remains strong,
with MINT reporting renewals hikes in the range of 12%
to 27%, higher than expected. Maintain BUY, TP raised to
S$1.44 (Prev S$ 1.37).
Cache Logistics Trust’s 3Q13 results in line. With minimal
renewals in FY14F, Cache offers strong income visibility.
Cache is poised for acquisitions, with opportunities
coming from overseas markets. Maintain BUY, TP S$1.33.
Yields of close to 7.3%-7.5% are one of the highest
amongst peers.
4Q13 results for Frasers Commercial Trust in line; outlook
remains positive. We expect DPU CAGR of 7-8% over
FY14-15. FCOT has resilient portfolio occupancies of
97.9%, with organic-driven growth in FY14. Maintain
BUY, TP revised slightly to S$1.46 (Prev S$ 1.44) as we roll
forward valuations. Forward yields of 6.6%-7.0% are
attractive.
Sheng Siong Group’s 3Q13 results in line; earnings
growth of 8% was driven by contribution from new
stores. Margins expanded further from lower input costs,
outperforming all quarters since listing. Maintain BUY and
S$0.80 TP; valuations are now more attractive post share
price correction.
US Indices Last Close Pts Chg % Chg
Dow Jones 15,413.3 (54.3) (0.4)
S&P 1,746.4 (8.3) (0.5)
NASDAQ 3,907.1 (22.5) (0.6)
Regional Indices
ST Index 3,204.8 (5.4) (0.2)
ST Small Cap 545.1 0.9 0.2
Hang Seng 23,000.0 (316.0) (1.4)
HSCEI 10,457.3 (196.1) (1.8)
HSCCI 4,467.1 (84.2) (1.8)
KLCI 1,814.1 10.5 0.6
SET 1,457.4 8.8 0.6
JCI 4,546.5 33.8 0.7
PCOMP 6,635.1 31.5 0.5
KOSPI 2,035.8 (20.4) (1.0)
TWSE 8,393.6 (24.6) (0.3)
Nikkei 14,426.1 (287.2) (2.0)
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 598
Total Daily Vol (m shrs) 2,777
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price ($)
23 Oct
Target Price
($)
ST Engineering Buy 4.140 4.80
ComfortDelgro Buy 1.910 2.19
OCBC Bank Buy 10.390 12.40
Singapore Airlines Buy 10.370 11.40
Stock Picks – Small /Mid Cap
Rec’n Price ($)
23 Oct
Target Price
($)
Ezion Holdings Buy 2.240 3.10
Goodpack Buy 1.930 2.00
CSE Global Buy 0.880 1.07
Mapletree Commercial Trust Buy 1.255 1.35
Frasers Centrepoint Trust Buy 1.850 2.14
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
Keppel Land China has acquired a 10.37 ha prime residential
site in the Sino-Singapore Tianjin Eco-City (Tianjin Eco-City)
for RMB241.1m. Targeted at the upper-middle income
homebuyers, the new landed homes will be launched
progressively, starting from the second half of 2014.
Courts Asia has started construction on its first “Big-Box”
megastore in Indonesia. With more than 13,000 sqm
(140,000 sq. ft.) of retail space, Courts Megastore in Bekasi
will be the largest store in Courts’ entire portfolio.
Operational by 2014, it will offer the largest range of
electrical, furniture and IT products in Indonesia, as well as
innovative retail concepts.
Wee Hur Holdings ventures into workers’ dormitory business
through a 60% stake in joint venture (JV) company, Active
System. Active System recently awarded tender by JTC to
operate 16,800-bed workers’ dormitory at Tuas South
Avenue 1. Construction of the dormitory is expected to
complete in 2H2014. With Government’s emphasis on proper
management of accommodation for foreign workers, the
Group is cautiously optimistic on high occupancy of
dormitory upon completion.
ISDN Holdings has signed the second MOU with Japanese
corporation IDI for the development of 540 megawatt coalfired
power plant in North West Myanmar. This latest MOU
follows an earlier MOU signed in June this year to collaborate
and explore opportunities to develop and invest in energy
projects and expand international power production business
in Asia.
Digiland is proposing to place up to 5800m new share at an
issue price of S$0.001 each. The estimated net proceeds of
about S$5.8m will be used for general working capital.
Travelite Holdings expects to register a net loss in 1H FY2014,
mainly due to lower demand for the Group’s apparels.
After climbing four consecutive months, inflation in
Singapore eased to 1.6% in September from 2% in August
and also below market forecast of a 2% rise, largely due to a
decline in the cost of private road transport. Private road
transport costs fell by 2% after rising marginally by 0.1% in
August, as a correction in car prices more than offset the
increase in petrol pump prices. Services inflation, however,
was stable in September at 2.7%, as the stronger pick-up in
the cost of recreation & entertainment and holiday travel was
offset by lower contributions from education and household
services fees. Accommodation costs, meanwhile, went up by
3.9%, slightly lower than the 4.2% rise in August. MAS core
inflation - which excludes costs of accommodation and
private road transport - slowed slightly to 1.7% in
September, from 1.8% in August. The government expects
core inflation to rise "over the next few quarters", and
average 1.5-2% in 2013, and 2-3% in 2014. The
government also reiterated that headline inflation is projected
to come in at 2.5-3% in 2013, and 2-3% in 2014.
A total of 39.7 million travellers passed through Changi
Airport in the first nine months of the year, up 5.6% y-o-y.
Volume of aircraft take-offs and landings was also higher,
increasing 5.5% to 254,000, though the cargo market has
been a little more subdued, with air freight volumes
remaining virtually flat at 1.4 million tonnes, edging up
0.7%
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