| CIMB | PHILLIP SECURITIES |
|
Duty Free International Improving margins, shorter cash cycle ■ FY2/17 core PATMI in line at 97% of our forecast, excluding one-off items from FX gain and fair value changes. ■ Stronger traction at airport channels could offset GST impact and weaker border town sales, to result in overall low single-digit topline growth in FY18F. ■ Higher TP of S$0.57 (DCF, 7.5% WACC) upon rollover; maintain Add. ■ Expect near-term sales weakness, but DFIL remains attractive for its cashgenerative business, margin expansion and 4-6% FY18-20F dividend yield.
|
CapitaLand Limited More recurring income expected SINGAPORE | REAL ESTATE | 1Q17 RESULTS Strong China performance across residential, retail segments. Same-mall NPI growth in China up 7.6% driven mainly by Tier 2 Chinese cities. Little ABSD/QC risk for Singapore portfolio expect for Victoria Park Villas. Singapore office rent decline abating, continue to expect bottoming out in 2018. Maintain ACCUMULATE with unchanged RNAV-derived target price of $4.19.
|
|
OCBC |
|
|
Mapletree Greater China Commercial Trust: Positive VAT outcome at Gateway Plaza Mapletree Greater China Commercial Trust (MGCCT) reported its 4QFY17 results which came in slightly above our expectations. Gross revenue jumped 7.9% YoY to S$94.8m. This was driven by higher rental income, coupled with the reversal of Value Added Tax (VAT) payable for Gateway Plaza (GP). Going forward, MGCCT will apply a lower VAT rate of 5% on GP’s gross revenue after obtaining clarification from the local tax authorities. DPU for the quarter came in at 1.959 S cents, up 1.9% YoY. Operationally, management secured positive rental reversions across its portfolio, while the YoY dip in tenant sales at Festival Walk in 4QFY17 came in at a smaller magnitude as compared to the preceding five quarters. Taking into account MGCCT’s full-year results, we raise our FY18 and FY19 DPU forecasts by 2.6% and 1.2%, respectively. As we also roll forward our valuations, maintain BUY with a higher fair value estimate of S$1.13 (previously S$1.08). This is supported by FY18F distribution yield of 7.0%.
|
|
| RHB | UOB Kayhian |
|
Starhill Global REIT 3QFY17 Results Flash Note DPU Declines 6.3%YoY Amid Soft Market Conditions We currently have a BUY rating, forecast and DDM-derived TP (CoE: 7.4%, Tg: 1%) of SGD0.81. The stock offers FY17F dividend yield of 6.6% Highlights • Starhill Global REIT (Starhill) 3QFY17 DPU dipped 6.3% YoY to 1.18 cents, bringing 9MFY17 DPU to 3.74 cents (-3.9%YoY). The results were tad below our expectations accounting for 23%/73% of full year forecasts. • The lower DPU was mainly due to lower contributions from mall repositioning in China, lower contributions from Wisma Atria retail, Singapore offices and Myer Centre Adelaide. In 3QFY17, Starhill also retained a higher SGD1.4m (3QFY16:SGD0.5m) of income for working capital purposes. • Occupancy at Singapore offices (94.7%) and retail (94.9%) portfolio dipped 0.9ppt/0.3ppt (YTDFY17) mainly due to challenging retail and office market. Overall portfolio occupancy remained steady at 95.1%. • Gearing remains unchanged at 35.3% with average borrowing costs of 3.2%. About 88% of borrowings are fixed. Adjusted NAV/unit stands at SGD0.91.
|
REITs − Singapore 1Q17: Results Of MLT (In Line) And SGREIT (Below Expectations) MLT’s results are in line with expectations. Portfolio rental reversions were at +0.4% in the quarter. Management remains cautiously optimistic on its outlook due to its well-diversified portfolio. Maintain BUY on MLT with an unchanged target price of S$1.20. SGREIT’s results were below expectations, due to higher-than-anticipated retained income. Maintain BUY on SGREIT with an unchanged target price of S$0.90. Maintain OVERWEIGHT on the sector.
|
Check out our compilation of Target Prices
