Daily Morning Note – 24 July 2020
PHILLIP SUMMARY
Stocks in Asia were poised to follow U.S. equities lower after an unexpected rise in jobless claims rekindled concern the economic recovery has stalled. Treasuries rose.
Futures slid in Hong Kong and Australia. Contracts on the S&P 500 Index edged higher after the gauge earlier slipped from a four-month high, led by losses in technology firms and companies that make non-essential consumer goods. The Nasdaq 100 Index dropped to a two-week low and turned negative for the week, erasing Monday’s rally. Intel Corp. slumped in after-hours trading after warning about a production delay.
BREAKING NEWS
MAPLETREE Commercial Trust (MCT) on Thursday reported a 10.7 per cent year-on-year decline in net property income to S$78.9 million for the first quarter, attributing it largely to rental rebates given to retail tenants at its core VivoCity property during the Covid-19 pandemic. Gross revenue for the quarter ended June 30 was down 10.5 per cent on the year to S$100.4 million, while property operating expenses were 9.7 per cent lower on the year to S$21.5 million.
OUE Commercial Real Estate Investment Trust (C-Reit) on Thursday posted a distribution per unit (DPU) of one Singapore cent for the half-year ended June 30, 40.5 per cent lower than a year ago. It said it had retained S$13.8 million of distribution to “preserve financial flexibility” amid the Covid-19 pandemic. Revenue for the second quarter had risen 23.9 per cent on the year to S$64.3 million, resulting in a 32.4 per cent year-on-year (y-o-y) increase in H1 revenue to S$142 million. Net property income for Q2 increased 23.7 per cent on the year to S$50.4 million, due to the contribution from the merger with OUE Hospitality Trust last year, although this was partially offset by rental rebates to tenants.
SUNTEC Real Estate Investment Trust (Suntec Reit)’s distribution per unit (DPU) fell by 31.3 per cent to 3.293 Singapore cents for the six months ended June 30, from 4.795 cents a year ago. This comprises a DPU of 1.76 cents for the three months ended March 31 and a DPU of 1.533 cents for the three months ended June 30, the real estate investment trust’s (Reit) manager said in a regulatory filing on Thursday. Gross revenue was down 16.1 per cent to S$149.4 million for the half year, from S$178.1 million a year ago.
FIRST Sponsor Group on Thursday posted a 49.4 per cent rise in net profit to S$58.1 million for the six months ended June 30, from S$38.9 million a year ago. The property group achieved a higher overall gross margin of 80.7 per cent in H1, compared to 69.2 per cent a year ago. It said this was due mainly to a change in sales mix, as the higher-yielding property financing business contributed a larger share of the total revenue in the current period.
ELITE Commercial Reit on Thursday posted a distribution per unit (DPU) of 1.95 pence for the period from Feb 6 to June 30, 2020, 1 per cent higher than its initial public offering (IPO) forecast of 1.93 pence. The real estate investment trust (Reit) was listed on the Singapore bourse on Feb 6 this year, opening at 70.5 pence, 3.7 per cent higher than its IPO price of 68 pence. Revenue for the period came in at £9.32 million (S$16.4 million), 0.3 per cent higher than its forecast of £9.28 million. Net property income stood at £9.1 million, 0.2 per cent above its IPO forecast of about £9 million.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
TECHNICAL PULSE
Singapore Exchange Ltd
Analyst: Chua Wei Ren
Recommended Action: Technical BUY
Singapore Exchange Ltd (SGX: S68) decline has been met with resistance after prices failed to break below $8.00 psychological support despite our sell call on 2nd July. Prices managed to stay above $8.25. Based on the technicals, prices are set to rally once again.
>> Read more technical reports
RESEARCH REPORTS
CapitaLand Mall Trust – Uphill from here
Recommendation: BUY (Maintained), Last Done: S$2.03
Target Price: S$2.33, Analyst: Natalie Ong
– 1H20 DPU of 2.96cents was -49% YoY and included one-third ($23.2mn) of the distributable income retained in 1Q20.
– The worst is over, baring a second wave of the virus. Footfall has recovered to 53% of January levels. 1H20 tenant sales fell -15.4% YoY, better than expected, while portfolio occupancy remained high at 97.7%, clocking +0.1% rental reversions for 2Q20.
– Maintain BUY with an unchanged TP of $2.33. We are keeping our estimates unchanged as we have previously incorporated c.$80mn of out-of-pocket (OOP) rental rebates, above the $76.5mn OOP rebates guidance for 1H20.
HK Reports – Read up on our Hong Kong reports here
RESEARCH VIDEOS
Webinar Of The Week
Market Outlook: Market Outlook: SG Banking Monthly, SG Bonds Weekly and SG Strategy 3Q20 (with stock picks)
Date: 06 July 2020
Phillip Research in 3 minutes: #24 – Hyphens Pharma International Ltd; Initiation
For more videos on Phillip in 3 Mins
| 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 揳s 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. |
