Daily Morning Note – 25 April 2018


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CapitaLand Commercial Trust – Armed and equipped for interest rate hikes
Recommendation: Accumulate (Upgraded), Last Close Price: S$1.80
Target Price: S$1.88, Analyst: Tan Dehong
– NPI and DPU within our estimates.
– Continued recovery in Grade A office rents, up 3.2% QoQ in 1Q18
– Minimal lease expiries left for 2018 (5% by gross rental income, GRI).
– Fully refinanced debt due in 2018. Increase in funding costs our only major
– Upgrade to Accumulate with increased TP of S$1.88 (from S$1.80)

Mapletree Industrial Trust – Portfolio of stability and diversification
Recommendation: Neutral (Maintained), Last Close Price: $2.00
Target Price: $2.09 (previously $2.15), Analyst: Richard Leow
– Gross revenue and DPU in line with our forecast
– Full quarter contribution from JV of 14 US data centres in 4Q FY17/18
– Maintain Neutral; lower target price of $2.09 (previously $2.15)

For more information and additional disclosures, refer to the link here.


President Donald Trump said he is sending a delegation of his top economic advisers to Beijing next week to try to settle trade disputes that have upset U.S.-China relations and rattled markets world-wide. “I think we’ve got a very good chance of making a deal,” said Mr. Trump.

US$35 million penalty for not telling investors of Yahoo hack . While Yahoo discovered the data breach quickly, it remained mum about it until more than two years later when it was being acquired by telecom giant Verizon Communications.

Chinese Uber competitor Didi Chuxing reportedly in talks to launch $80 billion IPO.

Summit Power defers US$260m Singapore IPO In light of recent market volatility, the company has decided not to proceed on the current IPO timeline.

Improved rental returns from VivoCity and a complex in Alexandra gave Mapletree Commercial Trust a boost in the fourth quarter. Distribution per unit crept up to 2.27 cents from 2.26 cents a year earlier. This will be paid on May 31.

PSA International has teamed up with a unit of CrimsonLogic to develop a global common trade and supply chain platform.

Source: Bloomberg, CNBC, Channel NewsAsia, The Business Times, 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

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