Daily Morning Note – 12 February 2018

WEEKLY MARKET OUTLOOK WEBINAR

Register HERE for MONDAY’s 11.15am webinar if you have not already done so.

Archived webinars available.

RESEARCH REPORT

Phillip Singapore Monthly – February 2018: No bond rout
Analyst: Paul Chew
– STI started the year with 3.9% surge in January
– We maintain Overweight on banks, property, electronics and consumer.
– In January, we initiated coverage on China Sunsine (beneficiary of supply
containment in China due to environmental concerns) and Y Ventures (growth
propelled by monetizing of its data analytics through e-commerce)
– In our inaugural Phillip Absolute 10 Model portfolio, it was up 4.9% in January.
It outperformed the STI by 1% point this month

Technical Analysis: The Phillip 20 Portfolio – January Monthly Review
Analyst: Jeremy Ng
– New Entries: YZJ Shipbldg SGD and Sunningdale Tech
– Take Profit: –
– Stop loss: Singapore O&G
– Total return since May 17 to January 18 is +8.29%
– All eyes on the 3354 – 3341 support area for the uptrend to remain intact for
the STI

DBS Group Holdings Ltd – Stellar Performance Across All Key Parameters
Recommendation: Buy (Maintain), Last Traded Price: S$26.60
Target Price: S$29.30, Analyst: Jeremy Teong
– 4Q17 PATMI of S$1.2bn was in line with our estimates.
– Loan volume, NIMs, loans quality and Non-II results were stellar.
– Strong momentum in Consumer and SME banking segment in Hong Kong and
Singapore.
– Strong momentum in WM and IB fee income.
– Maintain BUY rating with unchanged target price of S$29.30

Singapore Banking Monthly – SIBOR Surrendered December Gains in January
Recommendation: Accumulate (Maintain), Analyst: Jeremy Teong
– Singapore December domestic loans growth was up 5.6% YoY. Demand was
driven by real estate related business loans.
– Hong Kong November domestic loans growth was 15.5% YoY.
– SIBOR surrendered December gains in January, but channel checks reveal that
SIBOR pegged mortgage rates have risen.
– Maintain Accumulate for the Singapore Banking Sector.

Singapore Banking Monthly – SIBOR Surrendered December Gains in January
Recommendation: Accumulate (Maintain), Analyst: Jeremy Teong
– Singapore December domestic loans growth was up 5.6% YoY. Demand was
driven by real estate related business loans.
– Hong Kong November domestic loans growth was 15.5% YoY.
– SIBOR surrendered December gains in January, but channel checks reveal that
SIBOR pegged mortgage rates have risen.
– Maintain Accumulate for the Singapore Banking Sector.

800 Super Holdings Ltd – Lower PATMI, but within expectation
Recommendation: Accumulate (Maintain), Last Close Price: $1.14
Target Price: $1.35, Analyst: Richard Leow
– 2Q FY18 revenue 5.4% lower than expected, PATMI in line with our estimate
– 1H FY18 revenue and PATMI met 48% and 46% respectively, of our full year
estimate
– Negative surprise of absence of interim dividend (1H17: 1 cent)
– Maintain Accumulate; lower target price of $1.35 on cost pressures

Nam Lee Pressed Metal Industries – Strong start to the year, deep-value yield-play
Recommendation: Buy (Maintain), Last Close Price: $0.38
Target Price: $0.56 (unchanged), Analyst: Richard Leow
– 1Q18 revenue and PATMI both met 33% of our full year estimate
– Strong start driven by aluminium industrial product
– Keeping our full year estimate intact, due to historically volatile quarters
– Maintain Buy; unchanged target price of $0.56

Singapore Industrial REITs – Tailwind of tapering new supply this year
Analyst: Richard Leow
– Maintain Equal Weight view on Industrial REITs sub-sector
– Sector occupancy ticked up QoQ, driven by take-up of newly completed warehouse space. However, sector occupancy was lower YoY.
– Rental Index across the board yet to bottom, but Business Park rental made new high
– Tapering of new supply in 2018 leads us to believe rents to bottom by end of this year


BREAKING NEWS

Singapore Exchange Limited – A “Joint Press Release for Licensing of Indian Indices and Market Data of the securities listed or traded in India” by National Stock Exchange of India (NSE), Bombay Stock Exchange (BSE) and Metropolitan Stock Exchange of India (MSEI) (“the Indian Exchanges”) was issued on 9 February 2018, regarding the commercial licensing of their indices and market data with a number of foreign exchanges and other business partners. SGX wishes to assure market participants that we will take all measures to maintain orderly trading and clearing of SGX India equity derivatives for our global clients. The market for our entire India suite of products including Nifty will open and operate per normal on Monday, 12 February 2018. Our licence agreement with NSE will ensure the continuity of listing and trading our Nifty suite of derivative products till August 2018 at a minimum.

Spackman Entertainment Group announced that that upcoming Korean fantasy film, NOW I WILL MEET YOU, starring leading actors Son Ye-Jin and So Ji Sub will be released on 14 March 2018.

SIA Engineering Company Limited has signed a Memorandum of Understanding with CaseBank Technologies – a division of Aircraft Technical Publishers and the leading provider of integrated diagnostic and troubleshooting software solutions – to collaborate in the field of data analytics.

Kitchen Culture Holdings Ltd secured two contracts for projects in Singapore collectively worth S$6.1 million.

China Jinjiang Environment Holding Company Limited announced that its wholly-owned subsidiary Sunrise Development Group Limited has sold a 11.0% equity interest in Yueyang Jinneng Environment Green Energy Co Ltd to Yueyang Gaoneng Shidai Environment Technology Co Ltd, an unrelated third party, for an aggregate consideration of approximately RMB11.2 million (equivalent to approximately S$2.4 million).

Best World International Limited has been accepted as a member of the DSA of UAE. The DSA UAE is a member of the World Federation of Direct Selling associations, a highly regarded organisation intended to provide education, advocacy, and oversight in the direct selling industry.

Source: SGX Masnet, PSR

Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research

Read the research report(s), available through the link(s) above, for complete information including important disclosures

Important Information

Disclaimer
The information contained in this email and/or its attachment(s) is provided to you for information only and is not intended to or nor will it create/induce the creation of any binding legal relations. The information or opinions provided in this email do not constitute an investment advice, an offer or solicitation to subscribe for, purchase or sell the e investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise. You may wish to seek advice from an independent financial adviser before making a commitment to purchase or investing in the investment product(s) mentioned herein. In the event that you choose not to do so, you should consider whether the investment product(s) mentioned herein is suitable for you. PhillipCapital and any of its members will not, in any event, be liable to you for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on any information in and/or materials attached to this email. The information and/or materials provided “as is” without warranty of any kind, either express or implied. In particular, no warranty regarding accuracy or fitness for a purpose is given in connection with such information and materials.
Confidentiality Note
This e-mail and its attachment(s) may contain privileged or confidential information, which is intended only for the use of the recipient(s) named above. If you have received this message in error, please notify the sender immediately and delete all copies of it. If you are not the intended recipient, you must not read, use, copy, store, disseminate and/or disclose to any person this email and any of its attachment(s). PhillipCapital and its members will not accept legal responsibility for the contents of this message. Thank you for your cooperation.

 

Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you

IMPORTANT INFORMATION

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  

 

Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com