Daily Morning Note – 22 January 2018

WEEKLY MARKET OUTLOOK WEBINAR

Register HERE for MONDAY’s 11.15am webinar if you have not already done so.

Archived webinars available.

RESEARCH REPORT

Cache Logistics Trust – Fuelled and ready
Recommendation: Accumulate (Upgrade), Last Close Price: $0.875
Target Price: $0.92 (previously $0.82), Analyst: Richard Leow
– FY17 gross revenue in line with our estimate
– FY17 DPU 5.6% lower than expected due to temporary retention of $1.9mn
from 51 Alps Ave rental top-up, pending assessment for tax treatment
– 4Q17 DPU of 1.597 cents to be paid on Feb 27 (4Q16: 1.770 cents)
– Announced the divestment of 40 Alps Ave for $73.8mn, at 7% above valuation
– Upgrade to Accumulate; higher target price of $0.92 (previously $0.82)

BREAKING NEWS

The Ministry of Health (MOH) has established a 13-member committee, which includes medical doctors, academics and representatives from the government, as well as insurance and non-profit sectors, to produce government-backed benchmarks for medical fees. The first set of fee guidelines for common medical procedures (80-85% of operations at Singapore hospitals) will be ready by the second half of this year. The coverage will be gradually extended, and could eventually include benchmarks for consultation fees and laboratory tests.

Food Empire Holdings Limited issued a negative profit guidance for 4Q2017 mainly due to exposure of around USD10mn to its associated company, Caffe Bene Co., Ltd. The Company will release its unaudited financial results for 4Q2017 and FY2017 by 28 Feb-18.

Roxy-Pacific Holdings Limited together with its JV partner, TE2 Development Pte. Ltd., has entered into a conditional agreement to purchase the development comprised in Land Lot 4373K of MK 5 (known as Kismis View) at a purchase price of S$102.75mn.

Heeton Holdings Limited had issued S$118mn 6.08% fixed rate notes due 2021 under its S$300mn Multicurrency Debt Issuance Programme.

Frasers Commercial Trust has entered into a transferable term loan facility of £88mn with British and Malayan Trustees Limited. The Facility will be primarily used to finance the purchase consideration payable for the acquisition of a 50% interest in Farnborough Business Park in the United Kingdom.

Source: SGX Masnet, PSR

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

Important Information

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 “as 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.