DBS Equity Research: Wired Daily 21 Oct 2014

kiasutrader

Publish date: Thu, 23 Oct 2014, 02:02 PM

Keppel Land - 3Q14 results in line, maintain BUY, TP: S$4.59

3Q14 group revenues for Keppel Land fell 60% y-o-y to S$168m, largely due to absence of sales from The Lakefront Residences in Singapore which obtained TOP in May 2014 and lower contribution from a couple of projects in Shanghai. However, 3Q14 net profit only fell 11% y-o-y to S$113m, as Keppel Land booked S$99m in profits from the divestment of Equity Plaza and its share in Prudential Tower. Excluding these gains, Keppel Land's profits would have fallen 86% to S$16m. For 9M14, net profit excluding gains on property disposals stood at S$233m, representing 71% of our FY14F net profit. This is largely in line with expectations. As results were largely in line with expectations, there is no change to our estimates. With Keppel Land trading at a steep 32% discount to our target price of S$4.59, we continue to advocate investors add to their position in Keppel Land. Maintain BUY.

2Q15 DPU of 1.88 Scts (+3%y-o-y) for Mapletree Log Trust was attributable from MBLH, acquisitions (of Flex Hub in Iskandar Malaysia and Daehwa Logistics Centre in South Korea) as well as organic rental reversions of 9%, largely stemming from Hong Kong, Singapore and Malaysia. More updates to follow, after analyst briefing today.

Frasers Commercial Trust (FCOT) FY14 results above expectations. Better than expected earnings came from Alexandra Technopark, where underlying rents post-master lease expiry resulted in 24% increase in net property income to S$6.6m from S$5.4m. The Trust recorded strong rental reversions for FY14 at China Square Central (+13.7%), 55 Market Street (+15.1%), Alexandra Technopark (+17.4%) and Central Park (+21.4%). More updates to follow, post results briefing today.

TTJ Holdings has secured several contracts worth $22m tosupply structural steelworks for Changi Airport Terminals 1 and 2, Tampines Town Hub as well as civil defence shelter doors. With the addition of these new projects, T T J's order book gets lifted to $119m to date.

King Wan Corporation has secured four new mechanical and electrical (M&E) projects in Singapore during the period from July 2014 to October 2014, worth a total of S$21m. Order book now stands at S$184.6m, with contracts lasting to 2017.

Ramba Energy proposes placement of 37.5m new shares at a placement price of S$0.40 each. The placement price represents a discount of 8.8% to the last volume-weighted average price. The estimated net proceeds of about S$14.95m will be used mainly for the Oil & Gas business.

SATS'aviation operating data for 2Q and 1H FY2014-15. In the second quarter of FY2014-15, unit services, flights handled and passengers handled by SATS decreased y-o-y by 1.6%, 2.9% and 2.5%, respectively as airlines right-sized their capacity to match market demand. Unit and gross meals grew modestly by 1.3% and 1.8% respectively while cargo throughput rose 5.6%, mostly reflecting SATS' market share gain. All operating metrics improved in the first half of FY2014-15 with the exception of flights and passengers handled.

In property news, the government will launch 25% fewer Build-to-Order (BTO) flats next year, said National Development Minister Khaw Boon Wan. This would mark a further slowdown in pace - the BTO programme has already been reduced by 10% to 22,400 units this year - that would avoid an oversupply.

Source: DBS

Mapletree Log Tr (M44U)King Wan (554)Eneco Energy (R14)SATS (S58)

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