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DBS Vickers Duty Free International: International partnership boost Duty Free International (DFIL) is one of the largest duty free trading groups in Malaysia with more than 40 retail outlets nationwide. It also owns more than 700 acres of land near the Malaysia-Thailand border at Bukit Kayu Hitam which includes the 18-hole Black Forest Golf and Country Club and an oil palm plantation.
Through better execution, we expect better cost management and efficiencies to kick in and improve margins going forward. We value DFIL at 20x FY18F PE, which is within peer average and 1x PEG. Fair value works out to S$0.52 per share, which translates to a 23% upside from the current price. |
CIMB Best World International: TP raised to S$2.05 Best World's stellar growth has mostly been driven by Taiwan, where sales grew 276% yoy in 1H16. Management highlighted that the key drivers were 1) increased product acceptance, 2) a new lifestyle centre in Kaohsiung and 3) its new online store. |
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RHB Mapletree Logistics Trust: Acquires third logistics property in Vietnam Mapletree Logistics Trust (MLT SP) announced the acquisition of Mapletree Logistics Park Phase 2 from its sponsor Mapletree Investments Pte Ltd for VND 339.2b (~SGD 20.6m). The property has a remaining lease of 39 years and is located in Vietnam Singapore Industrial Park II, Binh Duong Province, Vietnam. The buildings comprise of four single-storey blocks of multi-tenanted warehouses with mezzanine offices and is 100% leased with a remaining WALE of 1.8 years.
Our view The acquisition size although small (<1% total asset value) is positive as it provides MLT with a direct exposure to growing demand of Vietnam's warehousing and logistics facilites. Post-acquisition, Vietnam market will account for nearly 1.9% of total contribution (1.2% previously). We maintain our Neutral recommendation with TP of SGD 0.89. |
NRA Capital ISDN Holdings: Attractive Risk-Reward Profile Deserves Attention ISDN trades at an attractive 50% discount from its NAV per share as of 30 June. Our basis for earnings growth stems from: 1) higher orders from smartphone clients as they prepare for their next series of new products 2) initial contribution from mini hydropower projects 3) lower financing costs following the repayment of debt post-dual listing 4) lower FX losses which amounted to S$0.9m in 1H16. Maintain Overweight (high-average return / moderate risk). |
