Daily Morning Note – 10 Febraury 2021


Asian stocks looked set for a mixed start after their U.S. peers halted a six-day winning streak as investors mulled whether commitments by the Federal Reserve and the Biden administration to let the economy run hot will spark destabilizing inflation. The dollar retreated. Futures slipped in Japan and Australian shares ticked higher. S&P 500 futures were little changed after the benchmark edged lower from an all-time high. The Nasdaq 100 Index eked out a gain, while small caps notched the longest rally since December 2019. Treasuries advanced and the dollar fell for a third straight session. Elsewhere, oil fluctuated after seven sessions of gains on signs the global market is tightening and demand is improving. Bitcoin pulled back from a record it reached after Tesla Inc. bought $1.5 billion of the cryptocurrency.



Transport operator SBS Transit on Tuesday posted a full-year net profit of S$78.96 million, down 2.9 per cent from the previous year. Its revenue for the full year ended Dec 31, 2020, also fell – by 14.8 per cent to S$1.23 billion. Revenue from public-transport services in 2020 stood at S$1.20 billion, a 13.6 per cent decrease from 2019. This was mainly due to lower service fees from lower fuel indexation and operated mileage, coupled with lower rail ridership due to the pandemic.

Genting Singapore on Tuesday posted a 90 per cent plunge in full-year net profit to S$69.2 million, which the integrated resort operator called the “worst financial performance since the opening of (its) Singapore Integrated Resort in 2010”. This was despite the group’s implementation of cost-containment measures and aid from the Singapore government amid the Covid-19 pandemic, Genting Singapore said.

Singapore Airlines (SIA) on Tuesday said it has reached agreements with Airbus and Boeing to revise its aircraft-delivery schedule. This will result in some of the aircraft in the group’s order book being delivered over a longer period than originally contracted, with the delivery stream spread out beyond the immediate five years. SIA will thus defer more than S$4 billion in capital expenditure (capex) between FY20/21 and FY22/23 to later years. It would also “recalibrate the rate of introduction of capacity, following the disruption to the demand for air travel as a result of the Covid-19 pandemic”, said the group in Tuesday’s statement.

Sunvic Chemical Holdings will be delisted from the mainboard of the Singapore Exchange, following Harrier Group’s intention to exercise its right to compulsorily acquire all the shares of the shareholders who have not accepted its voluntary general offer.


Boeing delivered 26 aircraft in January, boosted by the clearing of the 737 MAX jet to fly again after a 20-month ban as it also won four new orders for its 747-8 freighters. MAX deliveries are seen as central to Boeing’s financial recovery in 2021 after a sharp slump in demand for its bigger, more profitable wide-body jets due to the coronavirus crisis added to the company’s woes last year.

Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR



Analyst: Chua Wei Ren

Recommended Action: Technical SELL

Link REIT (HKEX: 823) upside is considered as a corrective action for the stronger bearish downtrend since June 2019. As such, we consider the larger corrective channel as an ongoing bearish flag.

>> Read more Technical reports


Manulife US REIT – Outperforming market occupancy & sub-leasing

Recommendation: BUY (Maintained), Last Done: US$0.715

Target Price: US$0.84, Analyst: Natalie Ong

– FY20 DPU of 5.64 US cents (-5.4% YoY) missed, at 88% of our estimate, mainly due to a lower-than forecasted NPI and NPI margins.

– Rental collection was 99%, after US$1.8m writeback in credit losses. Portfolio reversions were +4.7%, stripping out a marked-to-market lease.

– Gearing rose from 37.7% to 40.1%% YoY following a 4.9% YoY decline in valuation.

– DDM TP (COE 9.1%) cut from US$0.92 to US$0.84 as we lower FY21-24e DPUs by 10.2-11.7% to reflect leasing weakness. Still, maintain BUY as we are forecasting FY21e DPU yield of 8.3%.

>> Read more research reports

HK Reports – Read up on our Hong Kong reports here

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