Daily Morning Note – 2 Febraury 2021
PHILLIP SUMMARY
Asian stocks looked set to open higher Tuesday after U.S. shares had their biggest rally in about 10 weeks as concerns eased that the recent onslaught of speculative buying will derail the equity bull market. The dollar climbed. Futures rose in Japan and Australian shares advanced. S&P 500 futures were little changed after the gauge rebounded from last week’s selloff in a broad-based advance led by technology and retail companies. Heavyweights Amazon.com Inc. and Google’s parent Alphabet Inc., which are set to report earnings Tuesday, saw notable gains. GameStop Corp. tumbled as bearish investors appeared to cover their positions. Elsewhere, Treasuries were steady. Oil held gains. Silver futures retreated after the frantic retail trading that sent them to an almost eight-year high as it spilled into metals.
BREAKING NEWS
REAL estate agency PropNex on Monday announced that it is looking to sell its stake in its property management arm for S$1,018,000. PropNex Realty – along with shareholder Lawrence February Mila Manalac – entered into a sale and purchase agreement with Newman & Goh Property Consultants, to dispose its entire shareholding interest in PropNex Property Management Consultants (PPMC). The disposal will allow the company to allocate more focus on its real estate agency business, said PropNex in its regulatory update.
ELITE Commercial Reit posted its H2 distribution per unit (DPU) at 2.49 pence (4.5 Singapore cents) on Monday, 2.9 per cent higher than its initial public offering (IPO) forecast of 2.42 pence, with occupancy at 100 per cent as at Dec 31 last year despite the UK’s nationwide lockdown. The Reit (real estate investment trust), listed on the Singapore Exchange in February 2020, reported a post-tax profit of £19.5 million for H2, which was almost treble its IPO forecast of £6.9 million. Revenue was half a per cent lower than expected at £11.6 million for the second half of 2020.
SINGAPORE Press Holdings (SPH) and Temasek have entered into an agreement to merge their meetings, incentives, conventions and exhibitions (MICE) subsidiaries, according to an exchange filing on Monday. Temasek’s wholly-owned subsidiary SingEx Holdings and Sphere Exhibits, which is wholly-owned by SPH, will merge to form SingEx-Sphere Holdings. Temasek will own 60 per cent of SingEx-Sphere, while SPH will own the remaining 40 per cent.
BOUSTEAD Projects has agreed to acquire a 49 per cent stake in the sole owner and developer of two industrial land lots in Vietnam for 158.8 billion dong (S$9.2 million). The properties are located within the Yen Phong Industrial Zone in Dung Liet Commune, Yen Phong District, Bac Ninh Province, Vietnam. Both are well connected to civil infrastructure and enjoy good connectivity to the Noi Bai International Airport and major ports in Hanoi, said the real estate player in a bourse filing on Monday.
AN indirect wholly-owned subsidiary of the Singapore Exchange (SGX) is seeking to raise around 240 million euros (S$386 million) from zero coupon convertible bonds, to refinance its existing debt and for other corporate purposes. SGX Treasury I intends to issue the bonds, which will mature in 2024, to institutional and other investors. The bonds will be convertible into ordinary shares in SGX, and are guaranteed by SGX, said the bourse in a regulatory filing on Monday evening. Approximately 80 per cent of proceeds from the deal will be used to refinance SGX’s existing debt, while around 20 per cent will be used for general corporate purposes.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
TECHNICAL REPORTS
United Overseas Bank Ltd
Analyst: Chua Wei Ren
Recommended Action: Technical BUY
United Overseas Bank (SGX: U11) upside fails to sustain above $24.00 after the release of our technical report dated 8th January 2021. However, recent technical indicate that the bullish bias remains.
Japfa Ltd
Analyst: Chua Wei Ren
Recommended Action: Technical BUY
Japfa Ltd (SGX: UD2) buy call on 13th January 2020 upside has failed to sustain its strong upside above $1.00. However, based on the wave analysis, the stock is poised to make a comeback.
Japfa Ltd
Analyst: Chua Wei Ren
Recommended Action: Technical BUY
ISDN Holdings Ltd (SGX: I07) upside is set to continue after recent technical and wave analysis shows a strong bullish upside.
>> Read more Technical reports
RESEARCH REPORTS
Ascott Residence Trust – New asset class to bolster growth
Recommendation: BUY (Maintained), Last Done: S$1.04
Target Price: S$1.17, Analyst: Natalie Ong
– FY20 DPU of 3.03 Scts (-60.2%) came in below, at 75% of our forecast. Capital distribution from divestment gains formed 47.8% of DPU (FY19: 27.6%).
– 2H/FY20 RevPAU down 69%/61% YoY. FY20 gross profit -41% YoY with master leases/MCMGI/management contracts contributing 60%/6%/34%.
– Acquisition of purpose-built student accommodation in US to shore up revenue.
– Maintain BUY, DDM-based (COE 8.5%) TP raised from S$1.15 to S$1.22 as we roll forward our earnings forecast. We are forecasting FY21e/22e DPU yield of 4.2%/5.5%, with a 12.5% upside to our TP.
HK Reports – Read up on our Hong Kong reports here
Webinar Of The Week
Market Outlook: : (PSR) Keppel Corp, Keppel DC REIT, Phillip on the Ground, SG Weekly & Phillip Absolute 10
Date: 2 February 2021
Updates summarised in 3 minutes
Phillip Research in 3 minutes: #29 – Keppel Corporation; Initiation
For more videos on Phillip in 3 Mins
| 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 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. |
