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UOB KAYHIAN |
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Singapore Telecommunications (ST SP) Relief Rally Thanks to Australia
Potential consolidation in Australia; maintain HOLD TPG Australia (TPM AU, Not Rated) disclosed it is in potential “merger of equals” talks with unlisted Vodafone Australia. Although there is no certainty the transaction will take place, Singtel’s share price has reacted positively to the news. A successful transaction could affect 24% of our DCF-based SOTP (Fig 1) of SGD3.46. Until there is more clarity, we maintain our forecasts and HOLD. StarHub (STH SP, SGD1.65, BUY, TP SGD1.96) remains our preferred pick in the Singapore telco space as we believe its de-rating has been overdone.
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Keppel Corporation (KEP SP) Lowering RNAV Estimates On China
China property sales remain resilient for 7M18, with volume/value both up 4%/14% yoy respectively. Demand for property is growing increasingly speculative, and appetite for land sales is waning. The data suggests 2H18 property sales should stay resilient, though we are cautious on the outlook for 2019 and beyond. Land sales from SSTEC are expected to moderate. A higher RNAV discount is applied for this uncertainty. Downgrade to HOLD. Lower target price to S$7.37. Entry price: S$6.60.
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| CGS CIMB | PHILLIP SECURITIES |
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Ho Bee Land Steady ship
■ Boosting recurrent income base through the purchase of Ropemaker Place in UK. ■ Low Singapore inventory; well positioned to tap new landbank opportunities. ■ Extended Australian development pipeline with Wollert acquisition; China on track. ■ Maintain Add with a higher TP of S$3.00.
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Banyan Tree Holdings Limited Increasingly going asset light
SINGAPORE | REAL ESTATE (HOSPITALITY) | 2Q18 RESULTS Losses narrowed in the traditionally off-peak season due to lower operating expenses. Lower total costs and expenses mainly due to deconsolidation of China operations. Increase in forward bookings suggest tourism sentiment still healthy. Near term uncertainties for Thailand operations but we expect impact to be transitional and short-term. Maintain ACCUMULATE with unchanged target price of S$0.73
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DBS VICKERS |
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Singapore REITs
Flight to Safe Havens • Marketing feedback signals revival in demand for SREITs despite interest rate fears • Signs of sustained turnaround in various property subsectors in Singapore fuels confidence that the rally can continue • Office is our top subsector, followed by a switch to industrials over hospitality given softness in latter’s overseas hotel markets • Top picks* – AREIT, CCT, SUN, CDREIT and MLT
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Check out our compilation of Target Prices
