Broker's Digest 27 Nov 2017

Accordia Golf Trust (Nov 22: 69.5 cents)

- Maintain a buy on AGT as (1) 7.0% - 8.0% dividend yield remains attractive and (2) we believe there is still significant upside to our forecasts as we have not factored growth from any DPU-accretive acquisitions.  Price target of 78 cents

DBS Group Holdings (Nov 22: $24.84)

- Maintain neutral.  We cut our forecast of DBS operating expenses, and consequently raise both 2018 and 2019 net profit forecasts by 2%.  We are also more optimistic on the long-term ROE for DBS, and raise it to 11.1%.  This contributes to our higher price target of $23.33

Keppel DC REIT (Nov 22: $1.43)

- Maintain Buy.  We estimate that KDCREIT's assets under management are now ~$1.7 billion, which is on track to meet management's $2 billion AUM target by 2018.  We bump our fair value estimate from $1.39 to $1.50 on higher DPU forecasts and a lower discount rate assumption.

Procurri Corp (Nov 22: 22 cents)

- Maintain fully valued.  Procurri saw a slight profit of $0.01 million after recording a loss of $1.67 million in 2QFY 2017.  Price target of 18 cents based on a 6% discount to FY2018F BV/share of 19 cents after accounting for value of intangibles on book

RHT Health Trust (Nov 22: 84.5 cents)

- Hold.  Net property income in 2Q increased 6% y-o-y to $11 million.  Price target of 85 cents (5% downside)

Roxy-Pacific Holdings (Nov 22: 52.5 cents)

- Maintain HOLD.  Management has indicated that they see the asset as a prime investment opportunity with the potential to be a stable source of rental income for the group.  Fair value estimate of 52 cents

Singapore Airlines (Nov 22: $10.65)

- Maintain Hold.  SIA's October 2017 operating results saw passenger carriage y-o-y growth (+8.3%) outstripping passenger capacity growth (+2.8%) strongly, resulting in a solid 4.1ppt improvement in passenger load factor to 80.8% for its passenger airlines as a group.   Unchanged fair value of $10.50

Singapore Post (Nov 22: $1.29)

- Upgrade to Buy.  Evident in the 2Q results was improvement in three out of four growth cylinders, including mail, e-commerce and associate earnings, which we believe will gain momentum.  Logistics is the only uncertain part.  We raise our FY2019-2020E EPS by 1%-5% and DCF based price target 23% to $1.50

Spackman Entertainment (Nov 22: 10.6 cents)

- Maintain Buy.  Spackman booked a $0.77 million loss in 3QFY2017, in line with estimate.    Nonetheless, it will launch two new movies in 2018.   Our unchanged DCF-backed price target of 20 cents also implies a 15x FY2018F PER.  A downside risk to our call is a poor reception to its movies

(Source:  TheEdgeSingapore 27 Nov 2017)