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Shipyards -
DBS Research 2017-07-20: Creating Global Champions. Time to reform, restructure and reposition.

We explore possibilities of a merger of Keppel O&M and #SembcorpMarine (SMM).
#SembcorpIndustries (SCI) could re-rate if it divests SMM.
#KeppelCorp could swap infrastructure assets for SCI’s stake in SMM.

Upgrade Keppel Corp to BUY (Target Price S$7.60), raised target prices for Sembcorp Industries SCI (BUY; Target Price S$4.10) and Sembcorp Marine SMM (BUY; Target Price S$2.30).

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#UnionGas Holdings Limited -
DBS Research 2017-07-17: #IPO Factsheet.

Union Gas Holdings Limited is an established provider of fuel products in Singapore with over 40 years of operating track record. Currently, its business can be categorised into three segments:
- Retail LPG Business
- CNG Business
- Diesel Business

Market Cap: S$50m.

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#KeppelCorporation -
DBS Research 2017-07-21: Riding On Improving Sentiment On Property.

Keppel closes in on delivery of world’s first FLNG vessel conversion. A testament to Keppel; smooth operation of this unit will boost confidence of potential customers.

Property now contributes nearly two-thirds of earnings and valuation. The segment should continue to see promising sales in China, Vietnam and Singapore.

Upgrade to BUY with higher TP of S$7.60, after raising valuation peg for property segment from 0.85x to 1.0x P/B, in line with larger-cap Singapore developer peers.

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#FirstREIT -
OCBC Investment 2017-07-21: First Acquisition Of The Year.

First REIT announced that it has entered into a conditional sale and purchase agreement on the proposed acquisition of an integrated property comprises Siloam Hospitals Buton with ancillary healthcare-related space and a connected retail mall, Lippo Plaza Buton.

As this proposed acquisition only comprises ~2.2% of the existing portfolio, we prefer to maintain our existing forecast for now and await further potential accretive acquisitions in 2H17. 

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#AscottResidenceTrust (ART SP) -
UOB Kay Hian 2017-07-21: 2Q17 Active Asset Recycling Underway.

#ART's 2Q17 results exceeded our expectations due to better-than-expected contribution from recent acquisitions.

Ascott Residence Trust is actively seeking potential acquisition targets in the US, Australia, China, Europe and Vietnam. Management remains unconcerned about the impact of competition from #Airbnb from the recently-loosened regulations, noting that their respective markets are disparate.

Maintain HOLD with a higher target price of S$1.18.

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#SembcorpMarine -
DBS Research 2017-07-21: New Orders Deferred, Not Deterred.

Maintain BUY; TP raised to S$2.30, based on higher valuation peg of 1.8x FY17 P/BV in anticipation of stronger order flow ahead.

We continue to see rerating catalysts stemming from:
1) #SMM as a pure play to ride the oil-price recovery towards 2H;
2) sizeable new orders for non-drilling solutions, in particular Gravifloat’s modularised LNG terminals;
3) the conclusion of jackup sales;
4) the reactivation of Sete’s projects; and
5) SMM being a potential M&A play arising from a consolidation of Singapore yards.

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#SingaporePost Ltd (SPOST SP) -
Maybank Kim Eng 2017-07-21: Will Take Time To Deliver.

Key takeaways from #SingPost’s AGM:
1) management is implementing a turnaround plan for TradeGlobal, but it will take time as there is a lot to be done;
2) the new CEO, Paul Coutts will update the business strategy in the coming few weeks;
3) integration of acquired businesses and all assets will be the first priority.

While management is positive about the long-term potential of SingPost, the transformation journey could take time. Maintain HOLD.

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#SembcorpIndustries -
DBS Research 2017-07-21: Positioning For The Future.

Sembcorp Industries #SCI offers a unique value proposition, as a proxy to ride the cyclical O&M upturn and possessing a defensive utilities business.

Maintain BUY; Target Price adjusted to S$4.10, following the upgrade in #SembcorpMarine #SMM’s Target Price to S$2.30. Our Target Price translates to 1.1x P/BV, implying a 29% upside to the current share price.

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#AscottResidenceTrust -
CIMB Research 2017-07-20: One-off FX Gain Props Up 2Q17.

Ascott Residence Trust #ART's 1H17 DPU of 3.36 Scts (-11% yoy) formed 51% of our full-year forecast, which we consider to be above our expectations.

We expect a stronger 2H with additional contributions from DoubleTree Hilton NY and AOS, as well as US seasonality, which is back-end-loaded.

Maintain Hold, with projected total returns of c.3%. 

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#KeppelCorp -
OCBC Investment 2017-07-21: Healthy Profits From Other Core Segments.

Interim dividend of S$0.08/share was declared, better than our expectations.

Looking ahead, KEP expects the property division to recognise profits from about 5,860 of overseas homes sold as they are progressively completed from 3Q17 through to 2019. In Singapore, management sees the market bottoming with better prospects ahead. Keppel Capital aims to double its S$25b AUM over the next five years.

Maintain BUY with S$7.36 fair value estimate on Keppel Corp.

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