| CIMB | PHILLIP SECURITIES |
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China Aviation Oil 1Q17: Hitting the right notes ■ 1Q17 net profit of US$25.3m rose 41.1% qoq and 4.7% yoy, and accounted for 25.6%/25.9% of our/consensus forecasts. ■ Increased trading optimisation activities boosted 1Q17 GP margin to 0.47% (4Q16: 0.32%), alleviating the fall in volumes traded (1Q17: 7.3m mt vs. 4Q16: 8.3m mt). ■ Associate contribution came in at US$14.9m (+11.8% qoq/+5.0% yoy). ■ Maintain Add and TP of S$2.28, based on 13x FY18F P/E (c.17% discount to peer average).
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Cache Logistics Trust
Soft DPU boosted by capital distribution 1Q17 gross revenue in line with our forecast 1Q17 DPU from operations exceeded our forecast by 5.0% Quarter-on-quarter improvement in occupancy to 97.2% from 96.4%, but WALE continues to shorten to 3.6 years Adjusted our FY17e/FY18e revenue forecast higher by 1.6%/1.5% FY17e/FY18e DPU forecast adjusted higher by 3.9%/1.3%
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OCBC |
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CapitaLand Mall Trust: Stable DPU but rental reversions turned negative CapitaLand Mall Trust (CMT) reported a 4.3% and 6.1% YoY decline in its 1Q17 gross revenue and NPI to S$172.0m and S$120.1m, respectively. However, DPU was flat at 2.73 S cents and was within our expectations. This was due to a smaller amount of taxable income available for distribution to unitholders which was retained. If we add back the income retained, adjusted DPU would have fallen 6.4% YoY to 2.87 S cents. 1Q17 saw a slight dip in shopper traffic, and tenants’ sales psf, while negative rental reversions of 2.3% were recorded. CMT is currently trading at FY17F distribution yield of 5.5%, which is in-line with its 5-year average. Although the operating environment is likely to remain tough, we believe CMT’s stature as a quality defensive blue-chip stock would still provide value for investors in light of geopolitical tensions and macroeconomic uncertainties. As such, we maintain our BUY rating and S$2.20 fair value estimate on CMT.
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| UOB KAYHIAN | DBS VICKERS |
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Keppel Corporation (KEP SP) 1Q17: Earnings Supported By S$143m In One-offs; O&M Barely Breaks Even Keppel’s 1Q17 core earnings missed our and consensus expectations by a huge margin. Headline earnings of S$260m (+24%) was supported by S$143m in one-offs. Excluding this and fair value gains, core net profit was S$104m (-50%). The key drag was the O&M unit, which saw earnings decline by nearly 100%. The outlook remains challenging on the O&M front. Property appears stable, but we note challenges. Cut 2017 earnings estimate by 14%, and lower target price to S$6.55. Maintain HOLD. Entry price: S$5.90.
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ComfortDelgro (CD SP) SBS Transit wins 3rd Bus Package tender • SBS Transit wins 3rd Bus Package with S$480.3m contract pricing • 26 bus services, of which 13 services are currently operated by SBST • A pleasant surprise; expect minimal 1-2% accretion to forecasts • Maintain BUY, TP: S$2.94
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