Towards Financial Freedom
DBS Equity Research: Wired Daily 21 July 2015
M1 - Flat results due to industry-wide challenges. Maintain BUY with unchanged TP of S$3.60 for over 6% yield
2Q15 net profit of S$44.3m (+1% yoy, -3.1% qoq) for M1 was slightly below our S$46m estimate. Interim dividend per share of 7Scts, flat y-o-y, was inline. High customer acquisition costs due to iPhone6's popularity was the key culprit, while postpaid ARPU did not rise either, due to declining voice minutes Maintain BUY with unchanged TP of S$3.60 for over 6% yield.
3Q15 DPU for Frasers Commercial Trust was up 7% to 2.35Scts. Alexandra Technopark continues to outperform; portfolio occupancy was stable at 95.1% (Singapore properties : 95.3%; Australia : 94.9%). Deteriorating AUD/SGD a key risk to earnings as c.40% of net property income is derived in AUD. Maintain BUY, TP reduced to S$1.74 (Prev S$1.79) to factor in further currency weakness. At its current price, FCOT offers investors a dividend yield of c.6.5-6.6% over FY15-16F, which is highest among office focused S-REITs.
Keppel REITreported 2Q15 DPU of 1.72Scts, in line (+1% qo-q; -9% y-o-y). Leasing activity for 2015 almost complete; c.80% of leases by NLA extended to 2017 and beyond. Key focus will be on tenant retention, occupancy rates, and reletting of returned spaces. Maintain BUY, TP S$1.32. At the current price; K-REIT offers investors about 6.2-6.4% dividend yield for FY15/16.
Mapletree Logistics Trustreported topline and net property income grew by a respectable 5% and 3% respectively to S$85.1m and S$71.1m for 1Q16. Distributable income however was lower by 1.6% to S$45.8m and DPU dipped by 2.6% to 1.85 Scts, mainly due to an enlarged share base and a one-off divestment gain paid to unitholders last year. Looking ahead, we continue to see headwinds from its Singapore operations in the coming quarters but expect acquisitions to be a main driver for growth which will more than compensate for any dip in revenues for its Singapore operations. BUY call and TP of S$1.32 maintained.
GLPannounced the establishment of the largest China focused logistics infrastructure fund, CLF II. GLP China is the manager and holds 56% stake in CLF II. China is GLP's primary market for development, with development starts growing at 30% per annum. Fund management platform enables GLP to leverage 3rd party capital to expand network while increasing GLP's returns and reducing risk.
ST Engineering's Electronics arm has secured about $424m worth of contracts in the second quarter of 2015 (2Q2015) for Rail Electronics & Intelligent Transportation, Satellite & Broadband Communications, as well as Advanced Electronics & Information Communications Technologies (ICT) solutions.
SATS'aviation operating data. In the first quarter of FY2015-16 (Apr - Jun), unit meals and gross meals recorded steady year-on-year growth, while cargo throughput increased marginally. Unit services, flights handled and passengers handled declined year-on-year due mainly to the loss of Jetstar Asia account in October 2014.
Hiap Hoe has decided to put on hold its current plans to spinoff and listing of property business in Australia, having considered various factors, including the current market conditions, commercial considerations and other factors.
The Stratech Group has received the in-principle approval from SGX, for the removal of the Company from the Watch-List with effect from Monday, 20 July 2015.
AEI Corporation expects to report an operating loss for the half year ended 30 June 2015 due to lower sales achieved during the period as the worldwide demand from the HDD markets has weakened further and competition from overseas suppliers has become more intensified.
US stocks end the session little changed as better-thanforecast corporate results offset a slump in commodities producers. IBM shares fell in after-hours trade. Quarterly earnings beat analysts' estimates as reduced administrative and research costs helped offset a decline in its services and software businesses, but revenue fell more than expected.
Source: DBS
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
