| MAYBANK KIM ENG |
RHB |
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Mapletree Industrial Trust (MINT SP) Hi-Tech Play
In line, fine-tuning DPUs; maintain BUY We fine-tune DPUs following in-line 4Q19 DPU of SGD3.08cts, up 4.4% YoY on better portfolio occupancies and rising hi-tech contributions. FY19 DPU achieved 98.3% of our FY19 forecast. Looking ahead, we see DPUs backed by recovering leasing demand and growth visibility from a more resilient portfolio following its hi-tech asset investments and US diversification. We also introduce FY22 estimates. Our DDM-based TP stays at SGD2.25 (COE: 7.2%, LTG: 1.5%), and implies 14% total return. We continue to see catalysts from its acquisition-growth potential given a low 33.8% gearing and SGD0.7-1.2b of debt headroom. BUY.
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Frasers Commercial Trust (FCOT SP) Slow Leasing Progress At ATP
Maintain NEUTRAL, with unchanged TP of SGD1.50, 1% upside. 2QFY19 (Sep) DPU met expectations. We remain NEUTRAL pending more visibility on ATP leases (where occupancy has been sub-optimal) and redeployment of divestment proceeds. DPU in the meantime is expected to maintain stable, aided by higher capital distribution and payment of management fees in units. Key catalyst would be strong occupancy improvement at ATP, and accretive acquisitions. Key risks are a slowdown in office leasing momentum and forex fluctuations.
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| UOB KAYHIAN | DBS VICKERS |
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Oversea-Chinese Banking Corporation (OCBC SP) 1Q19 Results Preview: Mark-to-market Losses Reverse Into Gains, Lower Credit Cost
Net profit is expected to rebound 21% qoq in 1Q19 due to NIM expansion, recovery in wealth management fees and net trading income, and lower credit cost. Mark-to-market losses for Great Eastern’s shareholders’ fund are likely to reverse into gains. Credit cost is expected to fall within management’s guidance of 12-15bp as the outlook improves. We expect OCBC to gradually ratchet up its dividend payout, supported by its high CET-1 CAR of 14%. Maintain BUY. Target price: S$14.12.
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Perennial Real Estate Holdings (PREH SP) : BUY
Cashing in on Chinatown Point • PREH cashing in on Chinatown Point for S$225m; agreed total property price of S$520m/S$2,450 psf on NLA • Agreed price is 9% higher than the last valuation in December 2018; 18% higher than PREH’s last acquisition price • PREH will recognise a divestment gain of S$17.2m, which will turn 2Q19 into a profitable quarter from an expected 1Q19 net loss • Once again, PREH has demonstrated the ability to buy, remake and resell!
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