Daily Morning Note – 23 July 2019
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Iran handed down death sentences to several nationals accused of being part of a CIA-trained spy network, an official said. President Trump denounced the report as “totally false” on Twitter.
President Trump said Xi Jinping “acted responsibly” over protests in Hong Kong, and he hopes the Chinese president will “do the right thing” despite the ongoing unrest.
U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer will probably travel to Beijing next week for negotiations with Vice Premier Liu He.
SGX-listed The Trendlines Group receives investment of S$10.9 million from renowned UK business tycoon Vincent Tchenguiz.
Frasers Commercial Trust will pay out a distribution per unit (DPU) of 2.4 Singapore cents for the third quarter, flat on the year before, the manager said on Monday. Net property income dipped by 3 per cent year on year to S$19.8 million for the three months to June 30, amid higher property tax costs for Alexandra Technopark.
Accretive acquisitions in the previous financial year and the completed redevelopment of a Chinese logistics park lifted results for Mapletree Logistics Trust (MLT) in its first quarter. Its Q1 income available for distribution for unitholders climbed 20.8 per cent to S$73.6 million, while available distribution per unit (DPU) crept up to 2.025 Singapore cents from 1.957 Singapore cents thanks to an enlarged unit base.
Mainboard-listed steelmaker Delong Holdings has called for a trading halt on Monday, half an hour before the midday break, pending the release of an announcement. Delong’s latest bourse filing before Monday was made on July 9, when it updated shareholders that the government of Laiyuan county in China had paid the company a further sum of 40 million yuan (S$7.9 million) as part of the compensation for Aoyu Steel’s operations. About 448 million yuan remained outstanding on the compensation sum as at July 9.
Catalist-listed startup incubator The Trendlines Group announced on Monday that it will be receiving a S$10.88 million injection from Librae Holdings Limited (LH), a company related to UK business tycoon Vincent Tchenguiz. Trendlines has executed a subscription agreement with LH, whose sole shareholder is a trust for which Mr Tchenguiz is the discretionary beneficiary, in which LH will subscribe for 103.6 million new ordinary shares in Trendlines’ capital for S$0.105 each by way of a private placement.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
Sembcorp Marine Ltd
Recommended Action: Technical BUY
Sembcorp Marine has been on a downtrend from 2.10 since the start of September 2018. The decline may paint a doomsday scenario for Sembcorp. But based on the technicals, the fallout has presented opportunities to long the stock.
Cloud Computing – Cloud digestion remains but fading gradually
Analyst: Edmund Xue
– Our cloud CapEx indicator points to a 1% YoY decline for Q1 19. We see a similar trend for the top 5 cloud CapEx spenders.
– Amazon Web Services and Microsoft Azure reported strong cloud services revenue growth as they grew constant-currency 42% and 75% YoY respectively in 1Q19. They noted continued enterprise demand for hybrid cloud services.
– There were mixed results from component vendors except in the optical space in Q1. We saw a pickup in demand for the later half of Q1 and expect the momentum to pick up in 2H 19.
– We maintained our OVERWEIGHT rating for the cloud computing industry.
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Date: 22 July 2019
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