 Shared by:Lionel Lim, remisier Phillip Securities Website:http://lionelltp. Please contact me at 65 90400848 or email me at |
CIMB
Croesus Retail Trust Driven by acquisition growth
■ 4QFY16 results uplifted by new acquisitions; FY16 DPU largely in line at 95% of our forecast
■ Full contributions from new acquisitions, lease renewals and potential AEI at Torius should underpin growth from FY17 onwards
■ Gearing lowered to 45.3% post revaluation, more room for inorganic expansion
■ Cost savings from internalisation of Trustee-Manager should be felt from FY17 onwards
■ Maintain Add with an unchanged DDM-based target price of S$0.98
Silverlake Axis Ltd FY16 in line
■ FY6/16 core net profit in line with our forecast at 103% of our full-year forecast.
■ FX impact contributed 9% to the yoy increase in FY16 revenue.
■ 1.0 Scts DPS declared for 4Q16, translating to 103% payout ratio.
■ Balance sheet in net cash position at end-FY16.
■ Maintain Add with higher target price of S$0.68 as we roll over our DCF valuation to FY17.
UOB Kay Hian
China Aviation Oil Singapore Corp (CAO SP) BUY On A Stellar 3Q16 And Beyond
We believe the latest price correction for CAO presents a buying opportunity for those who missed the last boat as industry numbers look positive with China’s 1H16 international flight passengers increasing 27% and 2H16 travel bookings growth. Shanghai International Airport July data also look affirmative and we are confident of a stellar 3Q16 in view of the Jul-Aug 16 summer holidays. Maintain BUY and target price of S$1.90.
https://research.uobkayhian.com/content_download.jsp?id=35832&h=4eab5b5d416d6cab3f80348dc31591d
OCBC
- Recap of 2Q16 performance
- Continued challenges in 2H16
- BUY rating on ART and CDLHT
Recall that the group paid out a S$0.07/share dividend for FY15 and FY16; before this, it was paying out S$0.0625/share dividend for about eight years. Should the group continue with its S$0.07/share dividend, this would translate to about a 100% payout ratio for FY17.
We await management’s announcement on the dividend policy, while noting Singtel’s payout ratio of 60-75% of underlying net profit. Meanwhile, the stock is now trading below Alibaba’s entry price for its first investment tranche (S$1.42 in 2014). Maintain HOLD with S$1.42 fair value estimate. (Low Pei Han)
DBS Vickers
Croesus Retail Trust
New beginnings Internally managed to improve alignment and removes one barrier to a takeover.
We maintain our BUY call with a higher TP of S$0.99. We believe the perception of a greater alignment between the interest of Croesus Retail Trust (CRT)’s unitholders and management following CRT’s move to be the first internally managed trust will help close the discount to our TP. This is despite dissatisfaction from some unitholders with the price paid to buy out CRT’s trustee-manager (c.S$50m) and concerns over the large upfront cash payment to the current management team for their stake in the trustee-manager. In addition, with CRT no longer having an external trustee-manager, we believe this may remove a hurdle to a potential takeover by a J-REIT as speculated by some market participants due to CRT’s persistent high yield and discount to its NAV.
https://researchwise.dbsvresearch.com/ResearchManager/DownloadResearch.aspx?E=cbicgkfdhjg
Phillip Securities Pte Ltd
Croesus Retail Trust Visible growth drivers over next two years SINGAPORE | REAL ESTATE (REIT) | RESULTS
- Revenue and DPU growth on the back of contributions from newly acquired malls and tenant renewals.
- Non-property related savings such as savings from internationalization of asset manager and cheaper refinancing costs to boost bottom line in FY17 and FY18.
- Concerns about the longer term prospects of the last 2 acquisitions due to deteriorating demographics.
- ACCUMULATE (Upgraded)
http://internetfileserver.phillip.com.sg/POEMS/Stocks/Research/ResearchCoverage/SG/CRT20160829.pdf
