Brokers' Digest 15 Jan 2018

Capitaland (Jan 10: $3.77)

- BUY. Continue to see value in  CapitaLand

- Price target of $4.35 based on a 10% discount to adjusted RNAV of $4.81 per share

Citic Envirotech (Jan 10: 73.5 cents)

- MAINTAIN BUY.  CEL announced a placement of 83.2 million shares at 85 cents each, with new partners willing to accept at 14.8% premium

- We raise our 2017 to 2019 net profit forecasts by 4.1%, 6.3% and 7.6% respectively

- DCF based price target of $1.09

Cityneon Holdings (Jan 10: $1.02)

- MAINTAIN BUY.  Cityneon has signed a term sheet with Fabulous to set up a digital media signage board at the Marvel exhibit in Las Vegas

- We raise our 2018 and 2019 net profit estimates by 3.3 and 2.5% respectively

- A higher price target of $1.56 (previously $1.50), pegged to peer's average of 15.4x FY2018F PER

Keppel Corp (Jan 10: $7.92)

- MAINTAIN BUY.  Keppel's property segment remains under valued at 0,.9x P/BV, below Singapore's developers' 1x, notwithstanding Keppel's huge historical land bank of 6.5 million sq m at lower cost

- Our price target of $9.80 is based on sum-of-the-parts valuation.  Our price target translates into 1.3x FY2018 P/BV

Mapletree Logistics Trust (Jan 10: $1.35)

- BUY.  Mapletree Logistics Trust has entered into a sale and purchase agreement with a third-party vendor to acquire the remaining 38% strata share value of Shatin No 3 in Hong Kong

-  Funding will come from bank borrowings and internal funds, such that its aggregate leverage ratio is expected to increase to 39% post-transaction

- Fair value estimate of $1.35 for now

OUE Commercial REIT (Jan 10: 74.5 cents)

- MAINTAIN HOLD.  On the back of a nascent recovery for the office market in Singapore in 2017, we see robust sentiments extending into 2018.

- Valuations for OUECT are not particularly cheap at this juncture. 

- OUECT's 12 month blended forward consensus dividend yield has now compressed to 6.4%

- Fair value estimate of 67 cents

OUE Hospitality Trust (Jan 10:  88 cents)

- MAINTAIN HOLD.  The growth in passenger movements at Changi Airport remains strong

- After adjusting our model parameters on the lowered average cost of debt, our fair value increases from 82 cents to 83 cents and we expect a 6.2% FY2018F yield against Jan 4's closing price.

- We still do not find OUEHT's current unit price compelling, though we remain most positive on OUEHT of the four hospitality REITs under our coverage

Singapore Post (Jan 10: $1.24)

- MAINTAIN HOLD.  2017 has been a mixed bag for SingPost

- For FY2018F we forecast flattish underlying earnings with growth in FY2019F

- Fair estimate of $1.26

VENTURE Corp (Jan 10: $22.48)

- Buy (initiating coverage).  Venture is an electronics manufacturing services provider and original design manufacturer with facilities in Singapore, Malaysia and China.

- Our FY2018 EPS is 17% higher than consensus

- We value Venture at 18.8x FY2018E PER, a 1-% premium over its global high-mix, low-volume peers, given our estimated 21% EPS CAGR for FY2017 to FY2019E versus 12%.

- Price target of $27.50

(Source:  The EdgeSingapore January 15 2018)