Daily Morning Note – 13 February 2020



U.S. stock futures retreated along with the offshore yuan, and the yen gained as China reported an increased number of coronavirus cases in Hubei, using a revised method. Japanese shares opened modestly lower, though equities were higher in Australia and South Korea. Treasuries climbed and gold edged up following the surprise data release on the virus. Futures on the S&P 500 slid after the index rose to an all-time high Wednesday. Optimism yesterday that China’s Hubei province had reported the lowest number of new virus cases this month evaporated early Wednesday with the reported surge in cases.

Source: Bloomberg


COMING out of 2019’s slowdown, companies here have been looking to the upcoming Budget for support – a hope that has intensified as the Covid-19 outbreak threatens to hammer the Singapore economy.

DBS Group reported a 14 per cent boost in net profit to S$1.51 billion for the fourth quarter from compared with a year ago, on the back of broad-based business momentum. Earnings per share stood at S$2.31 for the quarter, up from S$2.01 previously. The company recommended a final dividend of 33 Singapore cents per share, subject to shareholders’ approval at the annual general meeting on March 31.

SINGTEL on Thursday posted a 23.8 per cent slide in its third-quarter net profit to S$627.2 million for the three months ended Dec 31, down from S$822.8 million a year ago. Earnings per share for the quarter came in at 3.84 Singapore cents, versus earnings per share of 5.04 Singapore cents in the preceding year.

CATALIST-LISTED property management company OEL (Holdings) plans to diversify into early childhood childcare and health education in Singapore, as well as the healthcare industry, through a share placement to investors led by controlling shareholder Zhang Jian.

MAINBOARD-LISTED Thomson Medical Group, which used to trade as Rowsley, narrowed its losses in the fourth quarter, on the absence of losses from discontinued real estate operations. Net loss shrank to S$1.16 million for the three months to Dec 31, 2019, from S$4.46 million in the same period the year before, even as income tax expenses shredded the bottom line.

CASINO and leisure giant Genting Singapore has expressed pessimism over the outlook for the first half of 2020 as the novel coronavirus has “created massive disruption” to the travel and tourism industries. In its results announcement on Wednesday when it reported a 4 per cent rise in net profit to S$156 million for the fourth quarter, the group said it will embark on a “stronger productivity drive and utilise this period to refresh and develop our offerings”.

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


First Sponsor Group Ltd – Backed by strong sponsors

Credit View, Research Analyst – Timothy Ang

First Sponsor Group Ltd develops and owns real estate properties in the People’s Republic of China (PRC), the Netherlands. The Group is also a hotel owner and a provider of property financing services in the PRC.

– Strong sponsors provide an avenue to funding

– Low gearing with high debt headroom

– Higher recurring income from Europe

– High property sales turnover in Dongguan, with short term cash boost expected

– Unhedged FX exposure to RMB

– Uncertain impact of Coronavirus on performance

Read more research reports

Webinar Of The Week

Market Outlook: (PSR) Singapore Weekly & Technicals

Date: 20 January 2020

For more on Market Outlook

Phillip Research in 3 minutes: #17 – IREIT Global; Initiation

Updates summarised in 3 minutes

For more videos on Phillip in 3 Mins

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

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 揳s 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.