| CIMB | PHILLIP SECURITIES |
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Property Devt & Invt Robust outlook
■ Dec primary home sales volume rose 17% yoy despite the lack of sizeable new launches ■ We project higher volume demand and private home prices to rise by up to 5% in 2018F ■ Retain sector Overweight; top picks – UOL, City Dev A quieter Dec
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Dasin Retail Trust Securing regular income from Chinese consumers
SINGAPORE | REAL ESTATE (BUSINESS TRUST) | INITIATION 16% organic growth (CAGR) for next two years from higher rental revenue Substantial inorganic ROFR pipeline that can quadruple Dasin’s assets Initiate coverage with a BUY and a target price of S$0.98, 26.5% upside
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| OCBC | UOB |
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SATS Ltd: Wait for better entry levels
For the period from Jan-Nov 17, Singapore’s Changi Airport’s operating statistics were encouraging as passenger throughput grew 6.3% YoY, aircraft movements rose 3.6% and air freight movements increased 8.1%. As highlighted before, strong traffic growth at Changi Airport is positive for SATS as we estimate SATS to handle close to 80% of the traffic throughput there. That said, it remains unclear whether the pressure on yields faced by airlines will be translated to pricing pressure for SATS. Over the longer-term, we remain positive over SATS’ outlook driven by its strategy to diversify out of Singapore as well as into non-aviation business segments, through several overseas partnerships. Consequently, on aforementioned reasons, we raise our FY18F-FY22F EPS by 2%-8%, and increase our FV to S$5.50. However, SATS’ share price has appreciated ~25.0% (15 Jan 18 close) since we upgraded the stock to BUY on 2 Oct 17. All considered, while we remain positive over its longer-term outlook, we downgrade SATS to HOLD as we believe investors should position themselves to accumulate closer to S$5.05 and lower.
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Singapore Airlines (SIA SP) Load Factors Continue To Improve Across All Sectors In Dec 17
SIA’s pax and cargo load factors improved significantly in December as load factors for the parent airline and SIA cargo were the highest in 10 years. Pax traffic growth continued to outpace seat capacity growth across all sectors, and yields should improve as a result. Improved pax yields and higher load factors should lead to a better profit in 3QFY18. Maintain BUY. Target price: S$11.90.
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UOB |
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Wilmar International (WIL SP) 4Q17 Results Preview: Marginally Better Performance Qoq
We expect Wilmar to report a 4Q17 core profit of US$360m-380m (3Q17: US$323.7m, 4Q16: US$589.5m) and a better qoq performance on higher contribution from the tropical oils and sugar divisions. However, we expect weaker yoy results on 4Q16’s high base which was due to an unusually strong contribution from the sugar division and the oilseeds & grains segment’s strong performance (on front-loading due to early-17 Chinese New Year demand). Maintain BUY. Target price: S$4.10.
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Check out our compilation of Target Prices
