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CGS CIMB |
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Singapore Aviation Services YTD 2019 stats: A mixed bag
Visitor arrivals improved but cargo looks ugly SG visitor arrivals rebounded in April led by Greater China, and Changi passenger volumes continued to benefit from the Terminal 4 effect. But YTD May 2019, air cargo volumes had their worst showing since the GFC was the fly in the ointment. That said, we maintain our positive view on the sector. Geographic and service diversification for the companies have provided a level of resilience against domestic market aviation cycles likely not witnessed before. SATS is our top pick on a 12 month basis.
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Suntec REIT
Deepens footprint in Australia ■ Buys Australia office property for A$297m; initial property yield of 5.5%. ■ Contributions expected from 2Q20; gearing to remain relatively stable at 38- 39%. ■ Maintain Add with a higher TP of S$2.15.
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RHB |
UOB KAYHIAN |
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Retail Labour Reforms In Singapore’s Retail Industry Maintain NEUTRAL on the Singapore retail sub-sector; preferred pick: Sheng Siong. The tightening of the foreign workers quota for the services sector takes effect on 1 Jan 2020. We think this is likely to cause near-term cost pressure on the retail and food & beverage (F&B) industries. Firms like Sheng Siong and Koufu, which have made good use of government grants to invest in automation over the past years, should be less impacted by the labour crunch.
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Singapore Post (SPOST SP) Restructuring Of Services Still The Focus
SPOST recently added new service enhancements to shore up standards for postal deliveries. With a new Postal CEO at the helm, operational changes remain very much in focus as fixed costs are gradually built in and remain a near-term drag. Parcel delivery will continue to face competitve pressures as well as the logistics segment. Maintain HOLD with a lower target price of S$1.04. Entry price: S$0.88
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Check out our compilation of Target Prices
