Daily Morning Note – 23 April 2018


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

Archived webinars available.


Singapore Exchange Limited – Thank you volatility
Recommendation: BUY (Maintained), Last close price: S$7.56
Target Price: S$9.20, Analyst: Phillip Research Team
– 3Q18 PATMI beat our estimates by 11%. Revenue of S$222mn is the highest since
listing. It was securities revenue that exceeded our expectations.
– Derivatives business drove revenue growth with volumes surging by 34% YoY. FX
derivatives enjoyed a stellar 89% spike in volumes.
– SGX will launch new Indian equity derivative products by June18, linked to a socalled
“publicly available reference price”.
– Maintain BUY. Our target price raised to S$9.20 (previously S$8.89), in-line with
the increase in our FY18e earnings by 4%.

CapitaLand Mall Trust Ltd – Sale of Sembawang Shopping Centre at 2x FY17 valuation
Recommendation: Neutral (Maintained), Last Close Price: S$2.10
Target Price: S$2.05, Analyst: Tan Dehong
– Higher occupancy and lower operating expenses propped up DPU amidst still
challenging operating environment in terms of tenant sales.
– Sale of SSC to Lian Beng at 1.97x FY17 valuation a positive surprise.
– No more debt expiries/refinancing risk in FY18.
– Overall tenant sales still sluggish, down 0.2% YoY.
– Maintain Neutral with increased TP of S$2.05 (from S$2.03) to factor in
divestment gains.


Sembcorp Ind Ltd – Weekly timeframe – Bullish
– The recent price action signals a possible move back into the uptrend again after
price broke and closed significantly above the 3.18 range high and 20, 60 day
moving average on the week ended 20/04/18.
– Expect price to head higher next to test the 3.38 resistance area followed by 3.60.

For more information and additional disclosures, refer to the link here.


United States Treasury Secretary Steven Mnuchin said he’s considering a trip to China. China’s Ministry of Commerce said it is aware that the U.S. is considering a visit to Beijing to negotiate economic and trade issues and welcomes such a move.

World Bank shareholders approved a “historic” increase in the bank’s lending capacity on Saturday (Apr 21) after the United States backed a reform package that curbs loans and charges more for higher income countries like China.

European Union and Mexico reached agreement on free trade deal. Under the updated terms of the 2000 deal, practically all bilateral trade in goods will now be duty-free, including in the agricultural sector.

Termination of Joint Venture between JEP China Holdings Pte Ltd and Kun Shan Fu Investment Co Ltd.

Property Developer SLP Development Ltd commenced trading on the Catalist board of SGX on Friday. Shares closed at S$0.25 per share 8.7% higher than issue price of S$0.23.

AusGroup Limited announced that subsidiary AGC industries Pty Ltd has been awarded the structural, mechanical and piping installation package by MSP Engineering Pty Ltd for the Talison Lithium Chemical Grade Plant 2 expansion at Greenbushes in Western Australia.

Source: SGX Masnet, Bloomberg, ChannelNewsAsia, Reuters, The Business Times, 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

Important Information

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.


Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you