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CGS CIMB |
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Plantation – Singapore The Future Of B30 Biodiesel In Indonesia
Biodiesel production in Indonesia increased 6% mom and 38% yoy in May 19 amid the current B20 biodiesel blending mandate. Domestic consumption is expected to increase to 9m KL in 2020 (2019E: 6.2m KL) if the B30 blending mandate kick-starts in Jan 20. Singapore companies with biodiesel plants will benefit from the higher biodiesel mandate, which will lead to higher utilisation of their biodiesel plants and higher earnings contributions. Maintain MARKET WEIGHT.
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Frasers Commercial Trust
ATP secures major tenant ■ Google to lease 344,100 sq ft of space at ATP. ■ This boosts ATP’s committed occupancy to 93.7%. ■ Upgrade to Add with a higher DDM-based TP of S$1.64.
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OCBC |
DBS VICKERS |
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Wing Tai Holdings Ltd: Hive of activity
It has been reported that Wing Tai Properties, an associate of Wing Tai Holdings Limited (Wing Tai), is looking at selling its units at OMA OMA in Tuen Mun at discounted prices, though we believe this would only be applicable in the initial phase, but might look to adjust prices subsequently. In our view, the benign interest rate outlook and low Mar-May19 unemployment rate of 2.8% should help to support the market, despite the macro headwinds. Separately, Wing Tai has been awarded a prime Middle Road land parcel at a bid of ~S$492m, which will be a residential development with commercial uses at the first storey. In our view, Wing Tai remains in a good position to weather through the obvious residential headwinds in Singapore, given its healthy net cash position, viz-a-viz the average net gearing ratio of 65.8% for the peers we track. Wing Tai currently trades at a consensus blended forward P/B of 0.45x, which is ~0.7 S.D. below the 10-year mean. We maintain our estimates and fair value of S$2.41.
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Singapore REITs A premium for your assurance
• A more gradual climb from hereon • Stronger position to pursue growth; fund-raising might offer attractive re-entry levels • S-REITs to benefit from Fed “insurance cuts” • Top picks: AREIT, CRCT, FCT, KORE, MAGIC, Suntec
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Check out our compilation of Target Prices
