Daily Morning Note – 23 January 2018
WEEKLY MARKET OUTLOOK WEBINAR
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RESEARCH REPORT
First REIT – Record DPU for FY17 in line with forecast
Recommendation: Neutral (Maintained), Last Close Price: S$1.41
Target Price: S$1.32, Analyst: Tan Dehong
– NPI and DPU for FY17 were in line with our forecast.
– 1.2% yoy uplift in DPU driven by 3 new acquisitions since December 2016.
– Outlook for organic growth for FY18 is positive after uptick in Singapore CPI.
– Maintain Neutral due to rich valuations vs post GFC valuations.
Singapore Exchange Limited – Performance supported by Derivatives products
Recommendation: Accumulate (Maintain), Last Trade Price: S$8.24
Target Price: S$9.00, Analyst: Jeremy Teong
– 2Q18 PATMI was in line with our estimates.
– 2Q18 SDAV was 4% higher but poor SDAV performance in December was a
drag.
– Equity, FX and commodity derivatives volume was strong despite a weak
trading environment globally.
– Securities clearing fee spreads were down due to higher trading volumes by
MMLPs and higher composition of products such as ETFs and DLCs.
– Derivatives average fee per contract decreased due to higher trading volumes
from trading members.
– Maintain Accumulate with higher TP of S$9.00 (previous TP S$8.31) based on
DCF.
TECHNICAL PULSE
Sunningdale Tech Ltd – Daily timeframe – Bullish
– The most recent price action is showing further sign of strength as the bullish
rejection on 22/01/18 succeeded in forming a Bullish Engulfing Bar with
increasing volume.
– Expect price to head higher next to test the 2.05 resistance area followed by
2.18.
For more information and additional disclosures, refer to the link here.
BREAKING NEWS
AEM Holdings Ltd announced a positive profit guidance for FY2017 financial results on the back of higher sales, better product mix and operational efficiency. The Group also expects FY2018 to outperform FY2017. The Group will release its financial results for 4Q and FY2017 by 23 Feb-18.
Ley Choon Group Holdings Limited has secured contracts worth approximately S$6mn for the supply and laying of NEWater mains from PUB, Singapore’s national water agency.
Singapore Telecommunications Limited has sold its 14.14% direct shareholding in in CS Loxinfo Public Company Limited to its associated company, Advanced Info Service Public Company Limited. The net aggregate value of the consideration payable to Singtel is approximately THB654mn (c.S$27mn).
Far East Group Limited had sold the land located at Lot No. 42182, GM 5748, Locality of 13th Mile Sungai Besi Road, Pekan Kajang, District of Hulu Langat, State of Selangor Darul Ehsan, Malaysia and the factory building constructed thereon at a sale consideration of RM11.5mn (excluding goods and services tax).
Metro Holdings Limited has entered into a conditional Sale and Purchase Agreement to sell its 30% interest in Nanchang Top Spring or a consideration of c.RMB627.7mn (c.S$129.3mn).
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
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