Broker's Digest 18 Dec 2017

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)

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)

Broker's Digest September 11 2017

C ache Logistics Trust (Sept 6: 81.5 cents)

- UPGRADE TO HOLD

- Cum-rights fair value at 81 cents and an ex-rights fair value of 78 cents

Cityneon Holdings (Sept 6: $1.055)

- MAINTAIN ADD

- Raises price target to $1.40

Manulife US REIT (Sept 6: 93.5 US cents)

- MAINTAIN BUY

- Price target of 98 US cents, with 13% upside from theoretical ex-rights price of 87 US cents

ST Engineering (Sept 6: $3.59)

- BUY (initiating coverage)

- Price target of $4.07

Singapore Airlines (Sept 6: $10.23)

- MAINTAIN HOLD

- Fair-value estimate of $10.10

UG Healthcare (Sept 6: 23.5 cents)

- MAINTAIN SELL

- Lower price target by 16% to 21 cents

Wheelock Properties (Sept 6: $1.83)

- Buy (re-initiating coverage)

- Price target of $2.33 pegged at a 15% discount to RNAV of $2.74 a share

Wilmar Int'l (Sept 6: $3.27)

- MAINTAIN HOLD

- Employed DCF methodology to arrive at price target of $3.52 offering a 6% upside from current levels and 2.7% dividend yield

Yangzijiang Shipbuilding (Sept 6: $1.435)

- MAINTAIN BUY

- SOPT-based price target of $1.70 is largely intact

(Source:  TheEdgeSingapore September 11 2017)