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Ascott REIT (BUY; Target Price: S$1.53) Ascott Residence Trust (ART) is proposing to acquire 3 serviced residences properties in China and 11 Rental Housing Properties in Japan for S$287.4 million from its sponsor, Ascott Group. The properties will be acquired at a slight discount to valuers’ valuation and the purchase price implies an initial EBITDA...
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Venture (BUY; Target Price: S$8.82) Venture Corp’s 1QFY13 results came in poorer than expected, with SGD28.0m PATMI (-21.1 per cent y-o-y) on the back of SGD530.5m revenue (-7.6 per cent y-o-y). With new programmes being ramped up for new customers and a brighter economic outlook in 2H13, we expect FY13 to be a backend loaded...
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UOB (UNDERWEIGHT; Target Price: S$21.6) 1Q13 PBT rose 17 per cent q-o-q on 12 per cent q-o-q PPoP growth and lower credit costs. Earnings at the net profit level, however, rose only 4 per cent q-o-q to S$721mn as much of the growth was negated by taxes as tax rates normalised from the abnormally low...
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Venture Corporation (BUY; Target Price: S$9.20) Venture’s 1Q13 results were 21 per cent below expectation with net profit at SGD28mn (-26 per cent q-q). Sales dropped 10.5 per cent q-q on weak demand growth and EBIT margins declined 1.3pp q-q as costs rose ahead of ramp in new business from Oclaro. While 2Q13F is likely...
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Indofood Agri Resources (BUY; Target Price: S$1.50) IFAR’s 1Q13 earnings disappointed consensus substantially, making up only 9 per cent of the Street’s full-year estimate. The earnings were on the lower end of our own expectations, though still within range, at 16 per cent of our full-year forecast. The severe disparity between IFAR’s 1Q13 results and...
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Yangzijiang Shipbuilding (NEUTRAL; Target Price: S$1.00) YZJ delivered nine vessels in 1Q13 and achieved a gross margin of 26 per cent for shipbuilding. This was on the back of the execution of pre-GFC contracts (+30 per cent gross margins) and cheaper raw materials. Steel prices have been down by 20 per cent since 2010-11. Orders...
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Nam Cheong (BUY; Target Price: S$0.35) Nam Cheong announced that it has won a US$59 million contract for two Accommodation Work Barges (AWBs) from Malaysia’s Perdana Petroleum. The two AWBs are scheduled for delivery in 1HFY14. Unit prices of US$29.5 million were exactly in line with our forecasts. The sale of these two vessels will...
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AIMS AMP Capital Industrial REIT (BUY; Target Price: S$1.90) To drive growth and unlock values within its portfolio, AAREIT’s manager is dedicated to redevelop several of its properties with an underutilized plot ratio. Recently, its management estimated up to 50 per cent of the total portfolio has underutilised plots that could be developed. Through this,...
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Courts Asia (BUY; Target Price: S$1.49) In the past, Courts had operations in Indonesia, Thailand, Singapore and Malaysia, where it had struggled with overexpansion and poor credit control. Now, management has centralised its credit system to make it independent of the country heads and refocused on credit quality control and collection, rather than aggressive credit...
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Cambridge Industrial Trust (BUY; Target Price; S$0.93) Cambridge REIT (CREIT) reported a 18.6 per cent and 17.6 per cent YoY rise in its topline and net property income to S$24.8 million and S$21.3 million, respectively. Growth was largely attributable to the additional income from the acquisitions, periodic rental escalations and higher income from its multi-tenanted...
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CapitaMall Trust (BUY; Target Price: S$2.43) CapitaMall Trust (CMT) turned in a strong set of 1Q13 results last Friday. As we have previously expected, NPI and distributable income grew by 15.5 per cent and 14.3 per cent YoY to S$125.1 million and S$93.7 million, respectively, on the back of incremental income from JCube, Bugis+ and...
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Far East Hospitality Trust (BUY; Target Price: S$1.21) Far East Hospitality Trust (FEHT) announced the proposed acquisition of 298-room Hotel Rendezvous Grand Singapore Hotel and Rendezvous Gallery, its accompanying retail wing. The combined acquisition price is S$264.5 million for a 70-year leasehold interest in the property and represents a 2-5 per cent discount to the...
