Daily Morning Note – 29 April 2021


Asian stocks look set to climb and U.S. equity futures rallied Thursday after robust earnings from technology heavyweights. The dollar retreated with bond yields after the Federal Reserve signaled it wasn’t ready to consider scaling back pandemic support.

Futures pointed higher in Australia and Hong Kong, while Japan is closed for a holiday. Nasdaq 100 contracts outperformed after Apple Inc. crushed revenue estimates and Facebook Inc. reported gains in sales and users. Alphabet Inc. rose to a record after its results showed a surge in ad sales.


SG News

CapitaLand announced on Wednesday that it will be investing 3.66 billion yuan (S$757.7 million) to acquire its first hyperscale data centre campus in China, the world’s second-largest data-centre market and the largest in the Asia-Pacific. The potential acquisition is via the purchase of 100 per cent equity interest in two companies registered in China, the property giant said in a statement.

Keppel DC Reit and telco M1 have signed a non-binding term sheet to establish a special purpose vehicle (SPV) to own and operate M1’s network assets, the companies said in a joint media release on Wednesday. M1 will be responsible to establish the SPV, which will acquire M1’s current mobile, fixed and fibre assets for S$580 million in cash. The consideration will be funded through external financing of S$493 million and an S$87 million investment by Keppel DC Reit, in return for a combination of debt securities and preference shares to be issued by the SPV. While M1 will retain 100 per cent of the SPV’s ordinary shares, M1 and Keppel DC Reit will be equally represented on the board of the SPV.

IREIT Global has, through its wholly-owned subsidiary Fit 2, entered into a conditional sale agreement to acquire Decathlon’s properties in France for 110.5 million euros (S$176.8 million). The portfolio comprises 27 retail properties with a gross lettable area of 95,477 square metres. Upon completion, all properties will be leased-back to the sporting goods retailer. The deal comprises a committed occupancy of 100 per cent with weighted average lease expiry by gross rental income of 10 years, and an option to break after six years, said the manager on Wednesday.

US News

Google’s results, showing a surge in ad sales related to travel and retail, offered a glimpse of online spending in a post-pandemic world: businesses are boosting digital marketing to capture a public eager to resume something resembling normal life again. Google parent Alphabet said first-quarter revenue, excluding payments to distribution partners, came in at US$45.6 billion, pummeling Wall Street estimates. The company also unveiled a big new share buyback, sending the stock up as much as 5.5 per cent to an intraday record high of US$2,416.98.

Spotify unveiled plans on Tuesday for podcast subscriptions, countering a similar initiative from Apple but offering a better deal than its US rival by allowing creators to keep all revenue for a limited time. The updated podcast platform for the United States, set to expand internationally in coming months, lets podcasters make episodes available only to subscribers. Taking advantage of the tool will cost podcasters nothing for the next two years, meaning they get all subscription revenue, Spotify said in a post.

Boeing reported a smaller quarterly loss on Wednesday as increased 737 MAX jet deliveries reflected a cautious rebound in air travel from the coronavirus pandemic, though the embattled US planemaker took a charge on its Air Force One presidential aircraft programme. But optimism in a resurgent US domestic travel market is offset by growing concerns over Covid variants in India and elsewhere, clouding the industry’s recovery.

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


Sheng Siong Group Ltd – Resilience despite no new shops

Recommendation: ACCUMULATE (Maintained); TP S$1.71, Last close: S$1.54;

Analyst Paul Chew

– 1Q21 revenue and earnings were within expectations, at 27%/30% of forecasts. 1Q21 benefitted from festive spending.

– Gross margins remained elevated at 27.6% vs. pre-pandemic’s 26.8%.

– No new stores were opened in past six months. Tenders of new HDB stores have been delayed, except for one large upcoming bid.

– Our FY21e PATMI and target price of S$1.71 are unchanged, at 25x P/E, its 5-year historical average. Maintain ACCUMULATE. With international borders still closed, revenue should remain above pre-pandemic levels. FY22e to benefit from accelerated rollout of new stores. 1Q21 annualised revenue per sq ft was S$2,363, towering above S$1,916 in pre-pandemic 2019.

FIRST SPONSOR GROUP LIMITED – Staying opportunistic

Recommendation: ACCUMULATE (Downgraded), Last Done: S$1.40

Target Price: S$1.56, Analyst: Tan Jie Hui

– Operational update suggests company is on track for record FY21 pretax profits, bolstered by property development and property financing.

– Unrecognised gross development value was S$620mn, after S$180mn recognised from handover of SOER, EoO and Plot F. FSG’s share of gross development value for unlocking from existing projects was S$3.2bn, before New Humen.

– New Humen project to increase its property-finance loan book by 30% and FSG’s exposure to Dongguan where residential demand is still holding up. Hotels underperformed.

– Downgrade to ACCUMULATE from BUY as recent run-up has priced in positives. SOTP target price unchanged at S$1.56.

>> Read more research reports

HK Reports – Read up on our Hong Kong reports here

Webinar Of The Week

Market Outlook: Keppel, Fortress Minerals, Mapletree, Aztech Global, Avarga, SG Weekly

Date: 26 April 2021

For more on Market Outlook

Updates summarised in 3 minutes

Phillip Research in 3 minutes: #29 – Keppel Corporation; Initiation

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

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.


Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you


This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  


Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com