Daily Morning Note – 23 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

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

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.