| MAYBANK KIM ENG | CIMB |
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mm2 Asia (MM2 SP) No Business Like Show Business
Initiate coverage with BUY We believe mm2 is on the cusp of a healthy growth phase, backed by its media and entertainment acquisitions in the past 12 months. Reflecting this, we value it at SGD0.56 or 1x FY19E PEG on a FY18-21E core EPS CAGR of 21%. Initiate coverage with a BUY with catalysts expected from regional expansion of its film, TV and event production businesses.
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Venture Corporation Smoke gets in your eyes
■ Philip Morris highlighted that its IQOS sales in Japan could be lower than its initial expectations. ■ Separately, the US has banned American companies from doing business with ZTE. This affects Oclaro, a customer of Venture. ■ We expect qoq decline but yoy growth in profit when Venture reports 1Q18 on 25 Apr
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| PHILLIP SECURITIES | PHILLIP SECURITIES |
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Singapore Exchange Limited Thank you volatility
SINGAPORE | FINANCE |3Q18 RESULTS Highlights
3Q18 PATMI beat our estimates by 11%. Revenue of S$222mn is the highest since listing. It was securities revenue that exceeded our expectations. Derivatives business drove revenue growth with volumes surging by 34% YoY. FX derivatives enjoyed a stellar 89% spike in volumes. SGX will launch new Indian equity derivative products by June18, linked to a so-called “publicly available reference price”. Maintain BUY. Our target price raised to S$9.20 (previously S$8.89), in-line with the increase in our FY18e earnings by 4%
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CapitaLand Mall Trust Sale of Sembawang Shopping Centre at 2x FY17 valuation
SINGAPORE | REAL ESTATE (REIT) | 1Q18 RESULTS 1Q18 NPI and DPU within our estimates. Higher occupancy and lower operating expenses supported 1.8% YoY increase in DPU. Overall tenant sales still sluggish, but with a few outperforming subsectors. Sale of Sembawang Shopping Centre (SSC) at 1.97x FY17 valuation a positive surprise. Maintain Neutral with higher TP of S$2.05 (from S$2.03) to account for divestment gains
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| CIMB | CIMB |
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Frasers Logistics & Industrial Trust Bratwurst and Shiraz are an umami combination
■ FLT has proposed the acquisition of 17 properties in Germany and four in the Netherlands for €596.8m (S$984.4m), or entry NPI yield of 5.5%. ■ We think that Germany and the Netherlands industrials share similar dynamics with Australia’s, the trio are peaking markets from a property-clock perspective. ■ Acquisition metrics also tick the right boxes as the portfolio is predominantly freehold, modern assets, 100% occupied, has quality tenants and long WALE of eight years. ■ The manager expects 1.7% DPU accretion. It also assumes 493.6m new units issued at S$1/unit to arrive at this number. ■ We think that FLT’s investment thesis would not alter significantly with this diversification. Maintain Add with unchanged DDM-based TP.
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Frasers Commercial Trust Focus still on ATP
■ 1HFY9/18 DPU of 4.8 Scts is in line with our projections, at 50% of our FY18 forecast. ■ 2QFY18 topline was adversely impacted by lower portfolio occupancy and the weaker Aussie dollar. ■ We expect continued income pressure to be felt from ATP. ■ FCOT expects CSC’s (AEI) to be completed in mid-2019. ■ We maintain our Hold call with a lower TP of S$1.50.
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