ANALYSTS SAY: Buy, Sell, Hold (13 June 2017)

CDL Hospitality Trust

Sir, it’s time to check out

■ We review our call and forecasts on CDREIT. However, due to its outperformance, we forecast total returns of 0% and maintain Hold with a higher DDM-based TP.

■ Our scenario analysis on CDREIT’s Singapore RevPAR performance shows 4-9% downside to current trading price.

■ We believe that CDREIT’s 2Q17F Singapore RevPAR performance could be uninspiring, which could break the share price momentum.

■ While further acquisitions could provide upside to our estimates, CDREIT’s leverage would limit the accretion, in our view

Read More ...

iFAST Corporation (IFAST SP)

Take Profit After A Strong Rally; Downgrade To HOLD

Since our BUY initiation in Dec 16, iFast’s share price has appreciated 18% and rallied 65% from its ytd low. Fundamentals remain intact and the group will continue growing its AUA on an expanded suite of services, including stock dealing services. However, we believe these positives have been priced in. With just a 4.6% upside to our DCF-based target price of S$1.02, which is street high, downgrade to HOLD. Entry price: S$0.90.

Read More ...

OCBC

Consumer sector: A pick up in sentiments?
On the local retail scene, the recently released Singapore retail sales for Apr-17 came in slightly above Bloomberg’s consensus survey (+2.3%). Retail sales was up 2.6% YoY and excluding motor vehicles, retail sales was up 4.9%. The growth was notably driven by discretionary segments. Against a backdrop of a relatively resilient labour market and better tourist arrivals in 1Q, while this overall set of data could suggest that consumer sentiments may be improving, the magnitude of growth for retail sales is not significant and we keep in mind that high operating costs remain a challenge for retailers. Considering the expansion by e-commerce players as well, we are NEUTRAL on the sector and remain selective with buy calls for SSG [BUY; S$1.15] and Thai Bev [BUY, S$1.01]. We like SSG’s management strength and largely stable business, and despite the looming store closures, new stores sales and achieving an optimal level of revenue per square feet for its stores are also key factors to potentially sustain its earnings performance.

Emerging Towns & Cities Singapore

Banking On Growth In Emerging Cities And Towns

ETC is a play on emerging cities and towns in Asia. Anchored by its existing two projects in Yangon and Huizhou, and armed with a strong balance sheet, the group is on the lookout to diversify into new markets in the region. In Yangon, ETC has established itself as a leading developer with the robust sales chalked up by its CBD project, Golden City. Ongoing profit recognition of its presales there would underpin earnings over the next two years. 

Read More ...