Daily Morning Note – 17 April 2018

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RESEARCH REPORT

Keppel DC REIT – Stable portfolio to start the year
Recommendation: Neutral (Maintained),Last Close Price: $1.46
Target Price: $1.47, Analyst: Richard Leow
– Gross revenue 4.8% higher than we expected and DPU 10.4% lower than we
expected, due to net tax and adjustments
– Gross revenue and DPU met 25% and 23% respectively, of consensus FY18
estimates
– Acquisition of maincubes Data Centre in Germany was completed on March 30,
growing the portfolio QoQ from S$1.51bn to S$1.66bn
– Maintain Neutral; unchanged target price of $1.47


BREAKING NEWS

U.S. stocks closed higher on Monday, with the biggest boosts from technology and healthcare sectors as investors were optimistic about earnings season and appeared less worried about U.S.-led missile attacks in Syria. The dollar fell against most major peers to the lowest since March, while oil slipped and Treasuries pared losses.

The Office of the U.S. Trade Representative is considering a new complaint against China to retaliate for restrictions on high tech sectors, like cloud computing – which would open up a new front in the trade standoff with China. On a similar note, the U.S. has also blocked Chinese telecommunications-gear maker ZTE Corp. from exporting sensitive technology from America, alleging the company made false statements to U.S. officials.

Trump took to Twitter on Monday to declare that China and Russia are playing what he called a “currency devaluation game” at a time when the U.S. Federal Reserve is raising interest rates. “Not acceptable!,” he wrote.

Britain and the U.S.has warned that Russian government-sponsored hackers are compromising the key hardware of government and business computer networks like routers and firewalls, giving them virtual control of data flows.

IHH Healthcare said on Monday Fortis indicated it was unable to engage due to binding agreements with Manipal Health Enterprises Pvt Ltd, Manipal Global Health Services and private equity firm TPG Asia.

German drugmaker Bayer is raising 3 billion euros (S$4.8 billion) towards its planned US$62.5 billion takeover of seed maker Monsanto by selling a 3.6 per cent stake to Singapore’s state investment company Temasek.

Faber Garden at Upper Thomson could be up for collective sale with S$1.18b reserve price, possibly making it Singapore’s largest collective sale deal this year and the second largest ever, if it succeeds

THE Urban Redevelopment Authority (URA) is consulting the public on its proposed framework for regulating short-term rentals of private residential properties, which could affect home sharing platforms such as Airbnb.

RAFFLES Education has entered into a heads of agreement with Australia’s Propertylink for the planned sale of its entire freehold interest in an Australian property for A$82 million (S$83.6 million).

NOBLE Group has won over its founder and largest shareholder Richard Elman to its restructuring plan, after tweaking the proposal to provide current shareholders 15 per cent of new equity in New Noble and agreeing to give Mr Elman a seat on the new board.

United Overseas Bank Limited has announced the pricing of its note, intending to issue US$700 million 3.20% Senior Notes due 2021 and US$500 million Senior Floating Rate Notes due 2021.

Source: SGX Masnet, The Business Times, ChannelNewsAsia, Bloomberg, CNBC, Reuters

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

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