Daily Morning Note – 22 March 2018


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Land Transport Sector – Improving operating landscape from regulatory reviews and changes
Analyst: Richard Leow
– Areas under review are: fare formula and licencing of private-hire car
– Operating regime change: NEL and SPLRT move to NRFF on Apr 1
– Regulatory reviews and changes addressing profitability and sustainability
– Fare formula under review by the PTC: any revenue impact is limited to Rail
– Private-hire car companies possibly facing a licencing regime
– Rental car population YoY growth has moderated, and population has
contracted YTD
– Uncertainty of takeover of Uber by Grab for Southeast Asia remains
– Maintain Overweight on the Land Transport Sector, and “Buy” rating on
ComfortDelGro Corp with a target price of $2.50.


The Federal Reserve raised overnight rates by 25bps as expected, putting the new benchmark funds rate at a target of 1.5%-1.75%. The Fed also maintained its forecast for three rate hikes in 2018 even as it gave a more upbeat forecast for the economy. Inflation expectations remained benign at 1.9% for both core and headline inflation in 2018.

Applications for Sasseur Reit IPO open on March 21, and close 12pm on March 26; Public tranche consists of 13.8m units at S$0.80 apiece. Trading in Sasseur Reit’s units will start on March 28 at 9am. Initial portfolio comprises four outlet malls in China.

Kori Holdings Limited has been awarded contracts amounting to an aggregate of S$13.5 million for mainly strutting and decking works at the Circle Line 6, and the Thomson-East Coast MRT Line.

Asiatravel.com Holdings has entered into conditional share and warrant placement agreements with Jacfun Pty Limited and Yalla.Digital Inc. for an aggregate amount of approximately S$1.38 million, assuming fully exercised warrants.

Ezion Holdings Limited issued a profit guidance, and is likely to record a net loss of approximately of approximately USD1 billion for both for 4Q2017 and FY2017, largely attributable to the impairment losses of approximately US$900 million.

OUE Commercial Reit’s portfolio property One Raffles Place Shopping Mall will undergo asset enhancement initiatives in mid-2018. The REIT also announced the opening of a co-working space, “Spaces”, occupying more than 35,000 sq ft of space across a few levels at the mall.

The Trendlines Group Ltd. has entered into a Memorandum of Understanding with Nutreco Investments B.V., a global leader in animal nutrition and aquafeed to collaborate on Technology Development and Investment Opportunities.

Source: SGX Masnet, The Business Times, Phillip Securities Research

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