Daily Morning Note – 24 April 2020

PHILLIP SUMMARY

U.S. stock futures were slightly lower on Thursday night as investors continued to weigh the prospects of a potential coronavirus treatment.

Dow Jones Industrial Average futures were down 67 points, or 0.3%. S&P 500 and Nasdaq 100 futures dipped 0.4% and 0.6%, respectively.

The S&P 500 and Nasdaq Composite closed just below the flatline on Thursday while the Dow eked out a small gain. At their session highs, however, the averages were all up more than 1%.

BREAKING NEWS

MAPLETREE Logistics Trust (MLT), releasing its results on Thursday after market close, has declared a distribution per unit (DPU) of 2.048 Singapore cents for the fourth quarter ended March 31, up 1.2 per cent from 2.024 Singapore cents in the year-ago period.

Q&M Dental Group is investing some S$3 million to build a new Covid-19 testing business via a joint venture with scientist Dr Ong Siew Hwa, the company said in a statement Thursday morning.

THE Covid-19 outbreak in China has caused a plunge in first-quarter sales for tenants of malls under CapitaLand Retail China Trust (CRCT), with sales dropping 42.5 per cent year on year.

WEALTH management fintech firm iFAST on Thursday posted a 126.8 per cent rise in net profit to S$3.6 million for its first quarter ended March 31, 2020, from S$1.6 million a year ago.

FRASERS Centrepoint Trust (FCT) on Thursday posted a second-quarter distribution per unit (DPU) of 1.61 Singapore cents, down 48.7 per cent from 3.137 cents a year ago.

Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR

TECHNICAL PULSE

Thai Beverage PLC

Recommended Action: Technical SELL

The technicals indicate severe weakness and point to a resumption of the bearish trend

>> Read more technical reports

RESEARCH REPORTS

Keppel DC REIT- Only if the price is right

Recommendation: HOLD (Downgraded), Last Done: S$2.45

Target Price: S$2.20, Analyst: Natalie Ong

– 1Q20 DPU of 2.08cents was in line, forming 23% of FY20e DPU estimates

– Portfolio metrics healthy – long WALE of 8.3 years, portfolio occupancy at 94.7% – and AEIs to drive revenue growth.

– While we like KDC for its solid portfolio and future-ready asset class, we think that upside is limited given the strong ride up in prices, and yields at c.3%, are not compelling. We recommend accumulating on pull back

– Downgrade to HOLD with a higher target price of $2.20 (previously $2.06). We adjusted our estimates upwards while lowering the cost of equity by 100bps to reflect the lower interest rates, and lower beta slightly as we believe the data centre asset class should be less sensitive to market factors

SGD Bonds Strategy – Rising risk of non-calls

Credit Analyst: Timothy Ang

– After a decline in interest rates, the refix structure of callable bonds, such as perpetual bonds, increases the risk of non-call

– We list the bonds with higher non-call risk

– Interest rates are expected to stay low for at least the year

– Choose vanilla bullet bonds, senior perpetual bonds, and bonds with step up clauses to avoid refix and non-call risk

>> Read more research reports

HK Reports – Read up on our Hong Kong reports here

RESEARCH VIDEOS

Webinar Of The Week

Market Outlook: (PSR) SIA Capital Raising Exercise (Bonds), Banking Monthly, REITS Monthly, China Monthly, Technicals & Singapore 2Q20 Equity Strategy

Date: 13 April 2020

For more on Market Outlook

Phillip Research in 3 minutes: #21 – Singapore REITs Sector

For more videos on Phillip in 3 Mins

Read the research report(s), available through the link(s) above, for complete information including important disclosures Important Information





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