| UOB KAYHIAN | OCBC |
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Frasers Logistics & Industrial Trust (FLT SP) 1QFY17: Running A Tight Ship Results are in line with expectations. There was a negative reversion of 1.1% due to a drag from a single lease. Despite a well-spread out lease profile, management is nevertheless also pro-actively looking to forward renew leases expiring in FY19. FY17 DPU is fully hedged at near parity to the Singapore dollar, while management could start hedging FY18 DPU next quarter. Maintain BUY with an unchanged target price of S$1.11.
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Wing Tai Holdings Ltd: Balance sheet remains healthy Wing Tai reported that its 2QFY17 PATMI improved to S$2.1m from the low base of S$1.1m in the same period last financial year, mainly due to higher contributions from Wing Tai Properties Ltd in Hong Kong and Uniqlo in both Singapore and Malaysia, partially offset by lower development profits. In terms of the topline, we saw 2QFY17 revenues fall 50% YoY to S$60.9m similarly due to lower contributions from development properties. Over the latest quarter, the group’s revenue contributions were mostly derived from The Tembusu in Singapore and additional units sold in Verticas Residences and Nobleton Crest in Malaysia. Over the latest quarter, Wing Tai also launched for sale Malaren Gardens, a 301-unit residential development in Shanghai, and we understand that c.90% of the 138 units launched has been sold. Overall, we deem this set of results to be broadly within expectations and continue to believe that the group remains well-positioned to ride out the current down-cycle with its healthy balance sheet. |
| CIMB | |
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Singapore Myanmar Investco Riding on Myanmar’s growth ■ Pure Myanmar exposure with key businesses in travel/fashion, F&B and auto services. ■ A potential beneficiary of growing tourism and foreign investments, SMI believes it is on track for an FY18 turnaround, led by its duty-free operations. ■ Based on Bloomberg estimates, SMI currently trades at 16x/10x FY18/19F P/E respectively. ■ Risks include regulatory changes in Myanmar, loss of duty-free concessions and franchise rights, according to management.
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| DBS VICKERS | CIMB |
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SG: shaping the future • The report from the Committee on the Future Economy (CFE) and Budget FY17 will be announced in coming weeks • The CFE report will attempt to map out the longer-term future of the economy while the budget will focus on near to medium term issues • Specifically, budget FY17 will be business friendly with significant resources devoted to enterprise development • Displaced workers can expect support and households can look forward to measures to defray costs • Expect a modest government deficit of about SGD 300mn for FY17
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Auric Pacific Group Limited Offer price not favourable ■ Major shareholders made a voluntary conditional cash offer for the remaining 23.28% Auric shares that they do not already control. ■ The offer price of S$1.65 (final), translating to FY16F/17F/18F core P/E of 10.8x/10.2x/9.6x (7x/5.5x/4.5x if ex-net-cash), is not favourable, in our view. ■ Shareholders who choose to reject the deal should stay vigilant to the acceptance level to avoid the delist risk.
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