Daily Morning Note – 30 April 2021
PHILLIP SUMMARY
Asian stocks look set to weaken Friday after another all-time record for the U.S. market overnight, as investors weighed the latest corporate earnings and solid economic growth data.
Futures pointed down in Hong Kong, Australia and Japan, where markets will reopen after a holiday. U.S. contracts slipped following a new high for the S&P 500 and a stronger close for the Nasdaq 100 amid mixed earnings reports.
BREAKING NEWS
SG News
Kimly has entered into a joint venture (JV) agreement through its wholly-owned subsidiary Kimly Makan Place to manage two coffee shops in Bukit Batok and Serangoon North, the coffee shop operator said on Thursday. The coffee shops are located at Block 233 Bukit Batok East Avenue 5 and Block 153A Serangoon North Avenue 1. Kimly Makan Place will manage the coffee shops under the JV with Tade Group, a private company in the business of letting and operating self-owned or leased food courts, coffee shops and eating houses.
Mapletree Industrial Trust (MIT), for its fourth quarter ended March 31, posted a distribution per unit (DPU) of 3.30 Singapore cents, indicating a 15.8 per cent year-on-year (y-o-y) increase from 2.85 Singapore cents in the corresponding period last year. Revenue in Q4 FY20/21 rose 18.9 per cent y-o-y from S$101.8 million in Q4 FY19/20 to S$121.06 million. Net property income (NPI) increased 17.3 per cent y-o-y to S$91.81 million, from S$78.26 million the previous year.
DBS Group trumped market estimates with a 72 per cent rise in quarterly profit to a record high on strong loan growth and stabilising asset quality, while highlighting bullish prospects in a recovering global economy. “This has been an extraordinary quarter for our business as we fired on all cylinders. Loan and deposit growth were robust, fees were strong and treasury had a record performance,” Piyush Gupta, CEO of Southeast Asia’s largest bank, said in the results statement on Friday.
US News
Applications for US state unemployment insurance fell last week to a fresh pandemic low as more Americans get vaccinated and return to work. Initial claims in regular state programmes decreased by 13,000 to 553,000 in the week ended April 24, Labor Department data showed on Thursday. The median estimate in a Bloomberg survey of economists was 540,000 claims. The prior week’s total was revised up to 566,000.
McDonald’s on Thursday smashed Wall Street estimates for comparable sales and returned to pre-pandemic levels of growth as more consumers, flush with stimulus cash, were drawn to its newly launched crispy chicken sandwiches. McDonald’s rolled out its chicken sandwiches, which come in three different flavours, earlier this year in the United States, looking to tap into a frenzy kicked off by privately owned Chick-fil-A and Restaurant Brands’ Popeyes in 2019.
Mastercard posted a surprise increase in revenue as consumers returned to travel faster than many analysts predicted. The fees Mastercard collects from overseas spending on its cards dropped 23 per cent in the first quarter, to US$932 million, smaller than the 28 per cent decline Wall Street was expecting.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
TECHNICAL REPORTS
Standard Chartered PLC
Analyst: Chua Wei Ren
Recommended Action: Technical BUY
Standard Chartered PLC (HKEX: 2888) technicals signal strong bullish upside after 4 months of consolidation
Buy spot: 55.05 Stop loss: 48.75 Take profit 1: 65.32 Take profit 2: 68.94
>> Read more Technical reports
RESEARCH REPORTS
CapitaLand Integrated Commercial Trust – Leasing lacklustre despite recovery
Recommendation: ACCUMULATE (Maintained), Last Done: S$2.18
Target Price: S$2.54, Analyst: Natalie Ong
– 1Q21 was first full quarter of contribution from CCT. NPI of S$247.1mn in line, at 24.2% of our FY21e forecast.
– Recovery in tenant sales, shopper traffic, physical occupancy in offices and office leasing enquiries following economic reopening.
– Maintain ACCUMULATE. DDM-based (COE 6.27%) TP raised from S$2.50 to S$2.54. FY21e/22e DPUs increase by 1.3%/2.0% after factoring in lower cost of debt upon refinancing and restructuring of RCS hotel lease. Attractive FY21e DPU yield of 5.1% amid sector headwinds. Stock catalysts expected from further AEIs and portfolio reconstitution.
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
Updates summarised in 3 minutes
Phillip Research in 3 minutes: #29 – Keppel Corporation; 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. |
