| MAYBANK KIM ENG |
RHB |
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Mapletree Logistics Trust (MLT SP)
More Stable, Less Growth In line with MKE and consensus; prefer AREIT Following in-line 4Q19 (DPU rose 4.5% YoY), we have lowered estimates 2-3% due to slightly weaker China growth assumptions. Our DPU estimates are mostly unchanged with TP at SGD1.40 (COE: 7.6%, LTG: 2.0%). The results reaffirm our view that MLT’s logistics assets have stabilised but growth has slowed due to a larger base; We find the shares fairly valued and maintain HOLD. Our forecasts factor in recent deals (five Japan divestments) with demand for its Singapore high-specs logistics assets supporting occupancies and rents. Our top industrial sector pick remains business-park-focused AREIT (AREIT SP, BUY, TP SGD3.10), which trades at a similar 5.6% yield but offers stronger DPU growth (+3.5% 3-year CAGR) and stronger balance sheet for acquisitions.
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DBS (DBS SP) Strength In 1Q19 ROE; Reiterate BUY
Reiterate BUY, with our TP under review pending an analyst teleconference later today. Our current TP of SGD29.60 offers 8% upside plus 4% FY19F yield, and is derived from our long-term ROE assumption of 13.5% (vs 1Q19 and 2018 ROEs of 14% and 12.2%). 1Q19 net profit released this morning was in line with expectations, accounting for 27% of our and consensus FY19F net profit. The 1bps QoQ widening of NIM to 1.88% is encouraging.
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| CGS CIMB | PHILLIP SECURITIES |
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Starhill Global REIT Mixed performance
■ 3Q/9MFY6/19 DPU of 1.1/3.38 Scts broadly in line, accounting for 23.5%/72.3% of our FY19 forecast. ■ Weaker Singapore and Malaysia operations, partly offset by improvement in Australia. ■ Maintain Add with a slightly higher TP of S$0.77
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Singapore Exchange Limited Record derivatives volume to support earnings growth SINGAPORE | FINANCE |3Q19 RESULTS
3Q19 revenue and net profit were in line with our estimates. Derivatives volume in 3Q19 surged 12% YoY, driven by China A50 futures and iron ore derivatives. SDAV plunged 30% from a high base last year. Quarterly dividend per share declared at 7.5 cents, up 2.5 cents. We maintain Accumulate at a lower TP of S$8.09 (previously S$8.17) as we peg our TP to 21.4x P/E, 1 SD below SGX’s 5-year mean. The lower TP is due to higher DDAV partly offset by lower SDAV.
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