Daily Morning Note – 22 January 2018


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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)


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

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