| CIMB | OCBC |
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NSL Ltd Net-cash conglomerate ■ NSL’s key businesses are precast concrete components and prefabricated bathroom units. It also has an environmental service unit. ■ NSL divested its dry mix business for a cash consideration of S$155.3m in Dec 16A. ■ Net cash (Dec 16A) formed 67% of NSL’s market capitalisation (as at 28 Mar 17). ■ NSL trades at historical FY16A P/NTA of 0.97x and historical dividend yield is 14.6%
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CapitaLand Limited: To deepen presence in Vietnam After meeting with representatives from the government of Vietnam recently, including the Prime Minister, the CEO of CapitaLand announced that the group plans to acquire more sites in Vietnam for residential development (2.0k-2.5k homes) and will continue to seek investment opportunities in offices, serviced residences and integrated developments. The group also announced that it has signed a Property Management Agreement to manage the retail mall at the new SingPost Centre, which has five floors and an NLA of 16.4k sqm. We like the fact that the company continues to deliver balanced results in an uncertain environment due to its diversified asset portfolio and robust recurring income streams. After the recent set of property curb reversals in Singapore and healthy data-points for home sales in key markets China and Vietnam, we update our model with firmer assumptions, and our fair value estimate increases from S$3.68 to S$3.93. Maintain BUY. |
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RHB |
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China Everbright Water New Contract Awarded What’s New? A consortium led by Everbright Water has entered into a new PPP Project in Suizhou with an investment value amounting to CNY956m. The company would hold a 78.4% equity stake in the project company. The contract includes an industrial waste water treatment plant in the Xihe County for a concession period of 25 years and a daily treatment capacity of 10,000 tonnes. As with most large-scale PPP projects, this contract also includes landscaping works, pipeline works and water environment restoration works.
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| MAYBANK KIM ENG | DBS VICKERS |
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Raffles Medical Group (RFMD SP)
Building sustainability
Key discussions: expansion projects and MCH We hosted Raffles Medical at our Invest ASEAN Singapore Conference on 21 Mar 2017. Key discussion points included: 1) its China expansion plans and future prospects; 2) local operation updates; and 3) restructuring of newly-acquired MCH. In the near term, there are several headwinds, including the restructuring costs of MCH, lacklustre medical tourism and start-up costs of new projects. However, long-term prospects remain sound given its initiative to expand overseas and strong execution track record. Maintain BUY with DCF-based TP SGD1.70 (WACC 7.1%; LTG 1.5%).
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Mapletree Group of REITs One (Day) in Bangkok
Hosted Mapletree group of REITs to a tailored conference in Bangkok Improving outlook for most REITs in 2017-2018 Ability and availability of acquisitions a key differentiating factor Strong financial metrics and liquidity from banks to limit interest rate pressures
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Check out our compilation of Target Prices
