Daily Morning Note – 24 January 2018


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Frasers Centrepoint Trust – Slowing rental reversions need a faster retail boost
Recommendation: Neutral (Maintained), Last Close Price: S$2.30
Target Price: S$2.14, Analyst: Tan Dehong
– 1Q17 gross revenue and DPU at 23.6% and 24.5% of our estimates (excl.
– Stabilisation of tenant sales (excl Northpoint North Wing, NPNW), up 0.2%
– Slower rental reversions at 1% (FY17: 5.1%) primarily dragged down by Bedok
– Maintain Neutral with unchanged DDM-derived target price of S$2.14.

Keppel DC REIT – Lifted by acquisitions and more to come
Recommendation: Neutral, Last Close Price: $1.47
Target Price: $1.47 (previously $1.36), Analyst: Richard Leow
– Gross revenue and DPU were within expectations
– 3.49 cents DPU declared for 2H17 to be paid on Feb 28 (2H16: 2.80 cents)
– Maintain Neutral, higher target price of $1.47 (previously $1.36)


Singapore Changi Airport registered a strong performance in 2017, handling a record 62.2 million passenger movements (+6.0%) for the year with 373,200 landings and take-offs (+3.5%). Airfreight throughput also grew by 7.9%, crossing the 2-million tonne mark for the first time, to reach 2.13 million tonnes for the year. (Source: Changi Airport Group)

BlackGold Natural Resources Limited has formally received a Letter of Intent from PT Perusahaan Listrik Negara (PLN) for the award of a Power Purchase Agreement relating to sale of electricity from the Riau-1 Project to PLN. PLN is Indonesia’s state-owned power distribution company.

China Everbright Water Limited’s Zhenjiang Sponge City PPP (Public-Private Partnership) Project in Jiangsu Province has received a subsidy of RMB41.12mn from the Special Provincial Fund for Integrated Water Environment Management of Taihu Lake Basin.

Accrelist Ltd. (formerly known as WE Holdings Ltd) will acquire 100% stake in Refresh Laser Clinics for a total consideration of S$4.0mn (S$2.0million in cash and S$2.0mn via issuance of new shares). Refresh Laser Clinics is an established chain of four aesthetic medical clinics.

KSH Holdings and KAP Holdings (China) Pte. Ltd., the joint venture company of Oxley Holdings Limited (55%), Lian Beng Group Ltd (20%), Heeton Holdings Limited (15%), are investing RMB145mn to acquire a 72.5% equity interest in Hebei Yue Zhi Real Estate Development Co., Ltd.

China Kunda Technology Holdings Limited released a positive profit guidance for its 3QFY18 and 9MFY2018 financial results. The Group expects to record a significant increase in net profit due to higher profit from the non-recurring income, as well as gain on disposal of plant and equipment. The Group will release its financial performance by 14 Feb-18.

Frasers Commercial Trust will issue 67,567,000 New Units at S$1.48 per New Unit to raise approximately S$100.0mn. The private placement saw strong participation from new and existing institutional investors and was over 5 times subscribed.

Source: SGX Masnet, PSR

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