| MAYBANK KIM ENG |
UOB KAYHIAN |
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Frasers Hospitality Trust (FHT SP) Value Play 4Q/FY in line, slightly lowered DPUs
FHT’s 4Q18 DPU of SGD1.22ct (-4.8% YoY, +8.9% QoQ) was in line with both consensus and our estimates. Stable performance for its properties in Singapore and Germany mitigated the weaker results across the rest of its portfolio. Its Singapore assets are positioned for a recovery in the hospitality sector, even as we expect near-term RevPAR growth to be tempered by competitive supply-side pressures within its micro-market. We lower DPUs 1-2% by reducing Australia RevPARs and introduce FY21 estimates. Our DDM-based TP remains unchanged at SGD0.80 (COE: 7.6%, LTG: 2.0%). Valuation remains undemanding versus history and peers in our view at 0.8x FY19E P/B, and low 33.6% gearing supporting acquisition growth upside. BUY.
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REITs – Singapore 3Q18: CCT (In Line), 4QFY18: FHT (In line)
Both CCT’s 3Q18 and FHT’s FY18 results are in line. CCT has started to see positive reversions at some of its properties, including CapitaGreen and One George Street. Singapore office rental outlook remains positive. During the quarter, CCT also secured a one year-lease extension with HSBC at S$27.7m. Maintain BUY with raised target price of S$2.00. FHT’s Singapore portfolio continued to do well, but we continue to see weakness across its properties in Australia and Malaysia. Maintain BUY with an unchanged target price of S$0.82. Maintain OVERWEIGHT on the sector
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| CGS CIMB | PHILLIP SECURITIES |
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Sunningdale Tech Ltd Challenging 2019F awaits
■ Sunningdale Tech’s manufacturing presence outside of China will help the company better manage the challenges present in the current trade war. ■ We think earnings over FY18-20F will be under pressure from rising production costs. ■ Our earnings cuts factor in a tougher operating environment. Our TP is reduced to S$1.84, based on a lower P/BV of 0.92x (as ROEs decline).
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United Overseas Bank Limited Stable Outlook Despite NIM Contraction SINGAPORE | BANKING | 3Q18 RESULTS
3Q18 PATMI and Revenue were in line with our expectations. NIM rose by 2bps YoY but contracted 2bps QoQ due to the intensive build-up of fixed deposits in the third quarter. Key earning drivers were loans growth and fee income. Loans grew 9% YoY, driven by broad-based growth across industries and countries. Credit costs improved to 18 bps (3Q17: 32bps) due to the absence of problematic O&G sector loans. Maintain BUY with target price of S$32.50 (previous TP S$33.70). We derived our revised target price following our earnings adjustments, based on the Gordon Growth Model.
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