Bumitama Agri (Dec 13: 74.5 cents)
- Maintain Buy. Downside risks for CPO prices will not be
significant from now
- However we do not expect prices to bounce
back strongly either
- Our price target of 95 cents is
maintained
CapitaLand Retail China Trust (Dec 13:
$1.60)
- Maintain Buy. Acquired a much younger asset, Rock Square in
the first-tier city of Guangzhou.
- Although initial yield is lower in
comparison, we believe the asset has greater growth potential
- We have priced in another acquisition of $250
million for the start of FY 2018 with 5% initial net property income yield and
3% per annum growth potential
City Developments (Nov 13: $12.65)
- Maintain ADD. City developments has revised the offer price
for remaining 34.8% in Millennium & Copthorne it does not own
- Once completed, the deal is likely to
accrete positively to our revised NAV estimates
- Price target of $13.15 pegged at a 20%
discount of RNAV
ComfortDelgro (Dec 13: $1.95)
- Maintain BUY. ComfortDelgro announced that it was acquiring
a 51% stake in Lion City Rental
- This tie up should be positive as both
parties leverage their strengths.
- DCF-based price target of $2.40
First REIT (Dec 13: $1.40)
- Maintain BUY. Siloam registered a healthy set of top-line
and operational results in 3Q2017.
- We continue to expect positive base
rental revisions for the REIT's Indonesian assets
- First REIT currently trades at a FY2017F
P/BV of 1.38x %, lower than Parkway Life REIT's 1.66x.
- Fair value estimate of $1.44
First Resources (Dec 13: $1.87)
- Maintain NEUTRAL. We believe the downside risks for CPO prices
would not be significant from now on and are likely to remain relatively
rangebound.
- We lift FY2018F-FY2019F earnings by3% to
10% to reflect higher CPO price assumptions
- Price target drops to $2.03 (from $2.15)
based on a lower 2018 PER of 12 x (from 13 x)
Roxy-Pacific Holdings (Dec 13: 54 cents)
- Buy (initiating coverage). Roxy being one
of the earliest to land-bank in the current market cycle, has seven freehold
residential developments in Singapore that will be ready to launch in 2018
- In FY2017, Roxy acquired four new
commercial buildings in Australia/New Zealand and one hotel property in
Japan. These properties will start
contributing in FY2018
- Our price target of 69 cents is based on
30% discount to RNAV of 98 cents
SPH REIT (Dec 13: $1.03)
- Downgrade to HOLD. SPH REIT's earnings are resilient, support by
sticky occupancies, while its low gearing of around 26% empowers the manager to
undertake value accretive acquisitions
- Our FY2018 DPU forecast is 8% lower than
the consensus average
- DCF-backed price target of $1.07
Wilmar Int'l (Dec 13: $3.15)
- Maintain NEUTRAL. Downside risks to CPO prices would be quite
limited from now.
- However there is a lack of catalysts for
a significant share price recovery
- We believe the key positive development
for 2018 would be the group's growing consumer pack segment while the China
listing is expected to come only in 2019.
- Our SOP based price target dips to $3.31
(Source:
TheEdgeSingapore December 18 2017)
