DBS Equity Research: Wired Daily 24 Nov 2014

kiasutrader

Publish date: Tue, 25 Nov 2014, 10:47 AM

Mapletree Logistics Trust - Acquisition of 10th warehouse in Korea. Maintain BUY and S$1.25 target price

Mapletree Logistics Trust (MLT) continued on its acquisition growth path with the acquisition of Smart Logistics Centre in Korea for KRW21.bbn (S$25.2m). The target property is a freehold three-storey Grade A dry ramp-up warehouse located within Fashion Forest, a prime fashion distribution park in Gyeonggi province, near Seoul. This represents MLT's tenth warehouse in Korea (accounting c.8.9% of revenues post acquisition). The acquisition is attractive, with initial yield of 7.8%, and offers long earnings visibility from a Weighted Average Lease to Expiry (WALE) of 4.7 years. Maintain BUY and S$1.25 target price. At its current price, MLT offers investors dividend yields of 6.4%-6.7% for FY15-17F.

Technics Oil & Gas has issued a profit warning regarding the financial results for Q4 FY2014 and full year ended 30 September 2014. Based on the preliminary financial figures, the Group is expected to report an operating net loss after taking into account the provision of impairment recommended by the auditors.

Viva Industrial Real Estate Investment Trust (VIT) places out 20m new units at S$0.78 per New Stapled Security to raise gross proceeds of S$15.6m. The Issue Price represents a discount of 2.5% to the last volume weighted average price. The proceeds will be used to partially repay VIT's existing borrowings.

China cut benchmark interest rates for the first time since July 2012 as leaders step up support for the world's second-largest economy. The one-year deposit rate was lowered by 0.25 percentage point to 2.75%, while the one-year lending rate was reduced by 0.4 percentage points to 5.6%, effective last Saturday. The rate cut in 2012 was a positive market catalyst, especially for China property, non-bank financials, and high gearing sectors. Our analyst's recommended actions: Buy China property, non-bank financials, railway and construction. Less bullish on China banks and Rmb appreciation plays. Pair trade: long China property, short China banks.

Global exchanges are battling for a share of the growing iron ore derivatives market, with the next wave of contracts coming online amid high price volatility for the key steel component. CME Group has just announced that it will be the first to introduce a new futures contract linked to The Steel Index (TSI) price for Chinese imports of fine ore powder containing 58 per cent iron - known in industry parlance as iron ore fines 58 per cent Fe, low alumina. The new contract will be available for clearing on Dec 8. SGX said earlier this month that it plans to launch two derivatives contracts also linked to the 58 per cent fines in early 2015.

To provide for more effective risk management solutions, Singapore Exchange (SGX) will launch five petrochemical derivatives before the end of January 2015. These new SGX petrochemical contracts will be the first in the market to be cleared on an exchange, SGX said.

Oil prices have tumbled dramatically in recent weeks. Oil now trades below $80 per barrel. The market will be watching how OPEC will respond when they meet on 27 Nov, and whether OPEC will vote to cut production.

Source: DBS

Mapletree Log Tr (M44U)

Related Stocks

Market Buzz

Discussions

Be the first to like this. Showing 0 of 0 comments

Featured Posts

MQ Chat

New Update. Discover investment communities that resonate with your ideas

VCPlus

Trade Confidently & Analyze Charts Conveniently - Download VCPlus IOS & Android App Now!

Latest Videos