ShareTradeForum
MARKET OVERVIEW
- The market could resume its uptrend on the first trading session of the year on bargain hunting following some profit-taking activity in the last two weeks of 2017.
- Technically, STI looks to be supported at 3,360, with immediate resistance at 3,430.
SECTOR WATCH
*Economy
- Singapore economy grew 3.1% in 4Q17, lifted again by the manufacturing sector (+6.2%).
- This was higher than street estimate of 2.6% but moderated from 5.4% expansion in the preceding quarter.
- MKE is forecasting GDP growth of 2.5% in 2018.
*Banks
- Domestic bank lending climbed 7.1% to $653.7b in Nov (Oct: +6.8%), propped up by business sector (+8.8%, Oct: +9%) and consumer loans (+3.8%, Oct: +3.8%).
- Maybank KE is Neutral on Singapore banks with preference for UOB (Buy, TP $27.10) over DBS (Hold, TP $22.75) and OCBC (Hold, TP $12.00).
POSITIVE NEWS
*SATS
- 49:51 JVCo, Mumbai Cargo Service Center Airport, won a cargo handling concession contract in Chhatrapati Shivaji International Airport in Mumbai, India.
- The concession will commence in Apr '18 and run for 18 years.
- Trades at 23.1x forward P/E.
*Chip Eng Seng
- Proposed US$19.7m investment for an effective 60% stake in a real estate development project in Ho Chi Minh City, Vietnam.
- The mixed project sited on a land area of 4,829 sqm and located in District 5 is known as Soai Kinh Lam Apartment - Commerce Centre.
- Trades at 17.7x forward P/E.
NEUTRAL NEWS
*CapitaLand
- Divesting interests in six Indian malls and their property manager for 1.6b rupees ($32.7m).
- The transaction is slated to be completed in 1Q18.
- Trades at 33% discount to its RNAV/share of $5.27.
*GP Industries
- Disposing two industrial complexes in Huizhou, China, for Rmb121.3m ($24.8m).
- The assets span 29,186 sqm of build-up area and group expects to reap a net gain of $15.9m.
- Last traded at 18.7x trailing P/E and 1.04x P/B.
*Global Yellow Pages
- Entered into a conditional agreement to subscribe 50.1% stake of FundPlaces for up to $2m.
- FundPlaces leverages on block chain technology to operate an online platform, allowing investors to build a diversified real estate investment portfolio across the world.
- The strategic investment would enable the group to leverage on its platform for its property development projects.
- Last traded at 0.5x P/B.
*Halcyon Agri
- Extended the deadline for its proposed acquisition of four rubber processing factories in West Kalimantan, Indonesia, to 12 Jan.
- If completed, the deal will raise Halcyon's total processing capacity to 1.55m tonnes p.a, propelling it to be the largest crumb rubber producer and exporter in Indonesia.
- Trades at 5.5x trailing P/E.
*Far East Group
- Completed the acquisition and partial leaseback of a property at 51 Ubi Ave 3.
- Group also extended the deadline of the option-to-purchase for its proposed disposal of Third Lok Yang property to 28 Feb from 31 Dec '17.
- Trades at 0.36x P/B.
*Union Gas
- Signed a non-binding MOU to acquire certain assets from Semgas Supply.
- Assets include the business of retail distribution of bottled LPG cylinders and sale of LPG-related accessories to domestic households in Singapore.
- The acquisition will allow the group to expand its retail LPG distribution network and customer base.
- The market could resume its uptrend on the first trading session of the year on bargain hunting following some profit-taking activity in the last two weeks of 2017.
- Technically, STI looks to be supported at 3,360, with immediate resistance at 3,430.
SECTOR WATCH
*Economy
- Singapore economy grew 3.1% in 4Q17, lifted again by the manufacturing sector (+6.2%).
- This was higher than street estimate of 2.6% but moderated from 5.4% expansion in the preceding quarter.
- MKE is forecasting GDP growth of 2.5% in 2018.
*Banks
- Domestic bank lending climbed 7.1% to $653.7b in Nov (Oct: +6.8%), propped up by business sector (+8.8%, Oct: +9%) and consumer loans (+3.8%, Oct: +3.8%).
- Maybank KE is Neutral on Singapore banks with preference for UOB (Buy, TP $27.10) over DBS (Hold, TP $22.75) and OCBC (Hold, TP $12.00).
POSITIVE NEWS
*SATS
- 49:51 JVCo, Mumbai Cargo Service Center Airport, won a cargo handling concession contract in Chhatrapati Shivaji International Airport in Mumbai, India.
- The concession will commence in Apr '18 and run for 18 years.
- Trades at 23.1x forward P/E.
*Chip Eng Seng
- Proposed US$19.7m investment for an effective 60% stake in a real estate development project in Ho Chi Minh City, Vietnam.
- The mixed project sited on a land area of 4,829 sqm and located in District 5 is known as Soai Kinh Lam Apartment - Commerce Centre.
- Trades at 17.7x forward P/E.
NEUTRAL NEWS
*CapitaLand
- Divesting interests in six Indian malls and their property manager for 1.6b rupees ($32.7m).
- The transaction is slated to be completed in 1Q18.
- Trades at 33% discount to its RNAV/share of $5.27.
*GP Industries
- Disposing two industrial complexes in Huizhou, China, for Rmb121.3m ($24.8m).
- The assets span 29,186 sqm of build-up area and group expects to reap a net gain of $15.9m.
- Last traded at 18.7x trailing P/E and 1.04x P/B.
*Global Yellow Pages
- Entered into a conditional agreement to subscribe 50.1% stake of FundPlaces for up to $2m.
- FundPlaces leverages on block chain technology to operate an online platform, allowing investors to build a diversified real estate investment portfolio across the world.
- The strategic investment would enable the group to leverage on its platform for its property development projects.
- Last traded at 0.5x P/B.
*Halcyon Agri
- Extended the deadline for its proposed acquisition of four rubber processing factories in West Kalimantan, Indonesia, to 12 Jan.
- If completed, the deal will raise Halcyon's total processing capacity to 1.55m tonnes p.a, propelling it to be the largest crumb rubber producer and exporter in Indonesia.
- Trades at 5.5x trailing P/E.
*Far East Group
- Completed the acquisition and partial leaseback of a property at 51 Ubi Ave 3.
- Group also extended the deadline of the option-to-purchase for its proposed disposal of Third Lok Yang property to 28 Feb from 31 Dec '17.
- Trades at 0.36x P/B.
*Union Gas
- Signed a non-binding MOU to acquire certain assets from Semgas Supply.
- Assets include the business of retail distribution of bottled LPG cylinders and sale of LPG-related accessories to domestic households in Singapore.
- The acquisition will allow the group to expand its retail LPG distribution network and customer base.
