Daily Morning Note – 19 March 2018


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Geo Energy Resources Ltd – Gloomy 4Q but will be a bright FY18
Recommendation: BUY, Last Done Price: S$0.225
Target Price: S$0.47, Analyst: Chen Guangzhi
– Align with the previous adjusted production target and enjoy a healthy price
– Subject to higher cash costs and interest burden in 4Q17
– Not subject to the new domestic production and price regulation in Indonesia

EC World REIT – Foothold in Hangzhou’s specialised logistics arena
Last Done Price: S$0.74, Analyst: Tara Wong
– Direct exposure to burgeoning e-commerce sector
– Strong backing from sponsor
– Hangzhou key pillar of e-commerce logistics blueprint in China

Technical Analysis: Bloomberg Agricultrure Subindex Total Return – Get ready for a
secular uptrend

Analysts: Jeremy Ng, Ho Kang Wei
– Bloomberg Agriculture Subindex Total Return overdue for a cyclical upturn based
on our cyclical study
– Current multi-decade low price in the Bloomberg Agriculture Subindex Total
Return signals physical shortage building up
– Our cyclical forecast points to limited downside in the Agriculture index with
strong upside gain of up to 100% over the next 3 – 5 years
– Several factors may hamper global supply’s ability to meet growing global demand
in the long-term
– Current conditions such as weather might provide a short-term boost for crop

Singapore Consumer Monthly – The Chinese New Year effect
Recommendation: Overweight
Analyst: Soh Lin Sin
– The timing of Chinese New Year has distorted the Jan-18 data points; Await Feb-
18 data for a clearer picture
– Expect 2018 FIFA World Cup to boost beer sales in Thailand and Vietnam; ThaiBev
and FNN would benefit from the strong demand in Vietnam
– We maintained our OVERWEIGHT view on Singapore Consumer Sector

Microsoft Corp. – Buy Trade – Position Open
Recommendation: Positive, Last done price: USD 94.18
Target price: USD 105.00, Analyst: Ho Kang Wei, Jeremy Ng
– Entry Price: 94.18
– Stop Loss: 88.73
– Risk/Reward: 2.0
– Cloud Growth and Office 365 subscription


SingTel Ltd – Weekly timeframe – Bullish
– With the recent bullish breakout above the 3.43 range high in the week ended
16/03/18, we might be seeing a bottoming price action next.
– For this rebound, expect price to head higher to test the 3.56 resistance area
followed by 3.76.

For more information and additional disclosures, refer to the link here.


U.S. consumer sentiment rose more than anticipated in March, reaching its highest level since 2004. The University of Michigan’s report on consumer attitudes rose to 102, above Reuters economists’ expectations of 99.3.

U.S. industrial production jumped 1.1 percent in February, the largest increase in four months, due to a weather-related rebound in construction and a rise in output from the nation’s oil and gas fields and mines.

The yield on the short-term 2-year Treasury note hit a high of 2.295 percent last Friday, its highest level since Sept. 19, 2008. This comes ahead of a Federal Open Market Committee meeting this week, where the Fed is widely expected to hike rates.

China’s parliament on Saturday unanimously re-elected Xi Jinping as the country’s president. On Sunday parliament voted to amend the constitution to remove presidential term limits, meaning Xi can stay indefinitely.

Infinio Group Ltd. has entered into a Conditional Sale and Purchase agreement with Oxley Holdings Ltd for the acquisition of 80% of Oxley Batam Pte. Ltd. through a novation of loan, for a consideration of S$10.4mn. Oxley Batam is engaged in the development of Oxley Convention Centre in Batam City, Indonesia.

Bukit Sembawang Estates Ltd. has successfully won the tender for the en bloc sale of Katong Park Towers. The sale price works out to a land rate of $1,280 psf per plot ratio.

Source: SGX Masnet, Bloomberg, Phillip Securities Research

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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