Daily Morning Note – 19 November 2018

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YOUR PHILLIP SUMMARY

Asia markets were mixed on Friday following fresh uncertainties emerging from the U.K. overnight after multiple important ministers resigned from Prime Minister Theresa May’s government.

U.S. stocks appeared to be driven overnight by a report said that the U.S. and China have doubled down on efforts to reach an agreement in the growing trade war, at the Group of 20 meeting later this month.

U.S. Stocks posted sharp weekly losses on Friday after a strong downturn in technology shares.

Gold rose as much as 1 percent on Friday as the dollar fell after U.S. Federal Reserve officials made cautions comments that fed doubt about the outlook for interest rate hikes, while palladium hit a record high driven by worries about short supplies.

Oil prices pulled back sharply on Friday, after earlier rising on expectations that OPEC and its allies would agree to cut output next month.

Source: CNBC

RESEARCH REPORTS

Asian Pay Television Trust – No more leveraged pay-out

Recommendation: ACCUMULATE (Upgraded), Last Close price: S$0.169

Target Price: S$0.170, Analyst: Paul Chew

– 3Q18 revenue exceeded our estimates due to a recovery in non-subscription revenue.
EBITDA was better than expected due to cost containment.

– Jump in broadband subscribers to highest quarterly net add since listing.

– APTV slashed dividends per unit for FY19e to 1.2 cents (our forecast 3.5 cents).

CapitaLand Limited – Tailwind from China

Recommendation: ACCUMULATE (Maintained), Last Close price: S$3.12

Target Price: S$4.00, Analyst: Tara Wong

– Revenue and PATMI in line with our forecasts.

– Bumping up recurring income with acquisition of US multifamily portfolio and third
Raffles City integrated development in Shanghai through its RCCIP III fund.

– Healthy same-store tenant sales growth in SG and China, CAPL’s biggest market.

– 4Q18 to be a bumper quarter for the year stemming from China residential pre-sales;
>90% take-up rates in 4Q18 launches so far.4Q18 to be a bumper quarter for the year
stemming from China residential pre-sales; >90% take-up rates in 4Q18 launches so far.


BREAKING NEWS

APEC fails to reach consensus as US-China divide deepens. Asia-Pacific leaders failed to agree on a communique at a summit in Papua New Guinea on Sunday for the first time in their history as deep divisions between the United States and China over trade and investment stymied cooperation.

Pan-United Corp to use technology that produces greener, stronger concrete. MAINBOARD-LISTED concrete innovation company Pan-United Corporation will be harnessing a technology that uses carbon dioxide to produce greener and stronger concrete.This will allow the company to potentially reduce over 4,000 tonnes of carbon dioxide emissions every year at each of its concrete plants.

Procurri to make 51%-owned JV wholly-owned unit in US$22m acquisition. Lifecycle services and data centre equipment provider Procurri intends to make its US-based joint venture Rockland Congruity its wholly-owned subsidiary.This will be achieved by payingUS$22 million for the 49 per cent stake it does not already own in Rockland Congruity.

Golden Energy and Resources joint venture makes takeover bid for Australia-listed Stanmore Coal. A 51-per cent joint venture of Golden Energy and Resources has made an off-market takeover bid for Australia-listed Stanmore Coal, while GEAR will acquire 19.9 per cent in Stanmore Coal for about A$47.6 million (S$47.8 million).

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