| MAYBANK KIM ENG |
UOB KAYHIAN |
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Mapletree Commercial Trust (MCT SP) More In Store?
In line; HOLD We fine-tune forecasts following 2Q19 results. We raise DPU by 2% as we see a stronger rental outlook for VivoCity, given its sound destinationmall positioning. Meanwhile, an asset-swap opportunity has materialised for its diversified commercial portfolio. Narrowing office cap rates could imply a SGD125m revaluation gain from Mapletree Anson, while a potential MBC II acquisition could also boost DPU by 9-10%. Our new DDM-based TP is SGD1.60 (COE: 7.5%, LTG: 2%). Upside risks could stem from these arising DPU growth levers.
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REITs – Singapore 2QFY19: AREIT (In-line), 3Q18: CMT (Slightly Above) And PREIT (In-line)
AREIT’S and PREIT’s results were in line, while CMT’s beat expectations. AREIT saw Singapore occupancies decline as tenants deferred their renewals amid uncertainties but continued to look for acquisitions overseas. Maintain BUY with a target price of S$3.01. CMT saw rents and occupancies (except for IMM) stabilising across the board. Maintain HOLD with a target price of S$2.02. Entry price: S$1.84. PLife’s results were driven by higher rents from Singapore properties. Maintain BUY with a target price of S$3.15. Maintain OVERWEIGHT on the sector.
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| OCBC | PHILLIP SECURITIES |
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Sembcorp Marine: Not much of a surprise
SembcorpMarine (SMM) reported a 60.2% YoY rise in revenue toS$1.17b and a net loss of S$29.8m in 3Q18 vs. net profit ofS$100.7m in 3Q17. 3Q17 numbers were restated with the adoption of SFRS (I) on 1 Jan 2018. 9M18 net loss amounted to S$80.1m vs. our forecast of S$70.5m net lossin FY18 and the street’s forecast of S$46.4m net loss. Operating losses are expected to continue in 4Q18;management has not provided guidance for FY19. Overall,despite the improved industry outlook, managementmentioned “it will take some time” before there is asustained recovery in new orders, while competitionremains intense and margins are compressed. This is in linewith our general stance since the beginning of this year.With the weaker than expected 3Q18 results, we adjust ourearnings estimates and our fair value estimate is tweakedfrom S$1.74 to S$1.73. Maintain HOLD.
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Ascendas REIT Acquired second UK portfolio
SINGAPORE | REAL ESTATE (REIT) | 2Q19 RESULTS Gross revenue and DPU were within expectation Acquisition of the second UK portfolio was completed on Oct. 4, subsequent to 2Q19 Maintain Accumulate; new target price of $2.78 (previous $2.82)
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Check out our compilation of Target Prices
