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#SingaporeExchange (SGX) -
RHB Invest 2018-06-22: Stronger SADV Expected In FY19 Market Cap.

We are forecasting FY19 SADV of SGD1.39bn. Global news flow on US-China trade tensions and US Fed #ratehikes could stimulate trading.

There is derivatives revenue risk from ongoing arbitration proceedings between #SGX and #IISL but the impact is expected to be relatively small as #SGXNifty 50 Index Futures accounts for only 11% of SGX’s derivatives traded volume.

#Dividend yield is attractive at 4.3-4.9%. Maintain BUY and SGD9 Target Price, offering 24% upside.

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#SingaporeAirlines -
OCBC Investment 2018-06-22: Getting Tougher To Fill The Spaces.

#SIA Group airlines’ passenger load factor (PLF) saw healthy growth trend over the period Jan 18 to May 18. Overall passenger load factor for May 18 rose 2.6ppt y-o-y to 79.6% as passenger traffic grew 9.6% while capacity increased at a slower pace of 6.1%.

#SIACargo posted negative growth in Cargo Load Factor (CLF) for May 18, as demand (freight-tonne-kilometres or FTK) did not keep pace with capacity changes across all route regions.

Given the fluid macro conditions and SIA​’s mixed bag of statistics, we keep our forecasts unchanged for now.

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#CapitaLandCommercialTrust (CCT) -
UOB Kay Hian 2018-06-22: Gallileo Acquisition A Done Deal.

The acquisition of 94.9% of #Gallileo Property​ has been completed, extending CapitaLand​ Commercial Trust’s #CCT footprint to the #Frankfurt prime CBD area. CCT’s portfolio has grown to S$10.9b (5% exposure to Germany).

Management has guided for acquisitions of core commercial assets in key gateway cities, targeting an allocation of 10-20% of its deposited property overseas.

At home, CCT’s #CapitaSpring has secured #JPMorgan as anchor office tenant, and is well-positioned to ride on the cyclical recovery in the Singapore office segment.

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#JapfaLtd (SGX:UD2) -
Maybank Kim Eng 2018-06-21: Serving Up A High-Protein Diet.

🆕 Initiate coverage with BUY.

After a forgettable 2017 marked by the impact of regulation and other adverse market factors that affected a number of its divisions, we believe #Japfa is on a recovery path and see FY18E-20E profit back up to USD89-116m levels from USD16m in FY17.

#Japfa is currently trading at 9x FY18E P/E, a significant discount of 44% to peers in the market and a 25% discount to its 52% owned subsidiary, #PTJapfaComfeedIndonesiaTbk​. We believe the market has yet to fully understand and appreciate Japfa’s diversified business model.

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#HoBeeLand (SGX:H13) -
Maybank Kim Eng 2018-06-20: Recurring-Income Boost.

#HoBee has raised its exposure to the UK office market to 41% of its assets after snapping up #RopemakerPlace, a Grade A office building in the City of London. The property is 96%-occupied, with Macquarie Bank​, IHS Markit​, Mitsubishi UFJ and Bank of Tokyo-Mitsubishi UFJ​ as key tenants.

Annual rental income of GBP30.6m translates to a net yield of 4.7%, based on its acquisition price of GBP650m. This acquisition has raised its annual recurring EBIT by 39% to SGD195m.

We raise EPS by 7-22% for acquisition; maintain BUY.

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#ISDNHoldings Ltd (SGX:I07) -
CGS-CIMB Research 2018-06-20: Motion Control Solution Specialist.

#ISDN is an integrated engineering solutions provider focusing on motion control, industrial computing and other specialised engineering solutions. Headquartered in Singapore, the group has been in business for more than 30 years.

📈 ISDN reported an 85% y-o-y increase in net profit for FY17. In 1Q18, its net profit rose 202% y-o-y. ISDN has a 25% #dividend payout policy and has been paying dividends for the past 5 years.

Its net cash per share as at end Mar-2018 represented 25% of ISDN share price on 19 Jun 2018.

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#MapletreeLogisticsTrust -
OCBC Investment 2018-06-21: Down But Not Out.

#MapletreeLogisticsTrust recently completed the acquisition of a 50% interest in each of 11 logistics properties in China. Within this portfolio, #京东​ and Cainiao Smart Logistics Network Limited, the logistics arm of #Alibaba​, contributing ~40% of the portfolio’s gross revenue, Following this acquisition, China is expected to contribute 11% of its pro forma FY18 NPI.

The ongoing trade friction between the #US and #China has undoubtedly spooked the equity markets and also casts a pall over the outlook of global trade and correspondingly logistics-related securities.

Taking into account the acquisition and recent private placement exercise, we trim our DPU forecast and lower our fair value estimate to S$1.34.

#SREIT #MLT #TradeWar

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#SingTel - DBS Research 2018-06-18:
Favourable Risk Reward ~ -7% Risk vs +21% Reward.

We expect Singtel’s earnings to rebound by FY20F, driven by the potential earnings recovery of #BhartiAirtel. Excluding market cap of its associates, Singtel’s core business is trading at only 5.5x FY19F EV/EBITDA, at ~15-20% discount to its local peers.

With 5.4% yield, we see potential risk of -7% vs potential reward of +21%. Digital businesses’ monetisation may lead to value accretion of S$0.16 per share. Final DPS of S$10.7 Scts going ex in late July.

BUY with a lower Target Price of S$3.70 as we adjust our core EBITDA and market cap of associates.

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#SingTel Investor Day 2018 – Q&A*
DBS Research 2018-06-18: Singtel

- How does Singtel differentiate its MVNO strategy?
- What is Singtel’s strategy in the SIM Only space?
- Any regulatory support for #TPG’s ramp-up?
- What’s Singtel’s view on topline growth in Singapore?
- What’s Singtel’s monetisation strategy for #Trustwave?
- Future plans of the Digital advertising business?
- How is the OTT video service, #HOOQ, progressing?
- Is there a risk of TPG adopting a similar strategy to Jio?
- What is #Optus’ 5G rollout strategy?
- How has #BhartiAirtel’s revenue share changed following the recent mergers?
- Strategy for operations of Bharti Airtel Africa?
- What is the key differentiator of #Globe vs. PLDT?

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#TopGlove (TOPG MK) -
Maybank Kim Eng 2018-06-20: Solid Global Demand Growth.

Top Glove's 3QFY18 core net profit of MYR118m (+8% q-o-q, +51% y-o-y) brought 9MFY18 core net profit to MYR327m (+40% y-o-y). Stronger 3QFY8/18 earnings were within expectations, driven by strong demand growth (9MFY18 sales volume: +23% y-o-y) from the emerging markets.

We maintain our earnings forecasts, expecting a stronger 4QFY18 given the recent USD/MYR strength.

Maintain BUY and Target Price of MYR12.90 (30x 2019 PER, 10% discount to our target PER for #Hartalega).

Key downside risk lies in #Aspion’s earnings delivery.
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