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PHILLIP SECURITIES |
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CDL Hospitality Trusts (CDREIT SP) Near-Term Uncertainty From Wuhan Coronavirus
Downgrade to NEUTRAL from Buy with new TP of SGD 1.62 from SGD1.78, 4% upside. 4Q results were in line. We expect strong near-term headwinds for the Singapore hospitality sector due to the outbreak of Wuhan coronavirus with sharp slowdown in Chinese visitors expected. Amidst an uncertain near-term outlook, investors are likely to stay on the side lines from hospitality-related stocks. Overall impact to CDREIT’s portfolio, however, is mitigated by its diversified exposure and master lease structures.
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Singapore Exchange Limited Deliberate Efforts to Grow
SINGAPORE | FINANCE | 2Q20 RESULTS SGX achieved 2Q20 revenue and net profit in line with our expectations. Positive business outlook expected across multiple segments; FICC grew 20% YoY, while DCI business grew a modest 4% YoY to S$26.7mn. The equities business came in flat. Acquired ‘Smart Beta’ index firm Scientific Beta for €186mn to propel DCI business. We maintain our NEUTRAL call with a revised TP of S$8.52. We peg our TP to 21.5x P/E, 1 SD below SGX’s 5-year mean. We will be expecting SGX’s acquisition plan to be EPS accretive in FY21. Our earnings forecast remains unchanged.
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| MAYBANK KIM ENG | CGS CIMB |
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Ascott Residence Trust (ART SP)
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OUE Commercial REIT Strong Singapore portfolio performance
■ 4Q19 DPU of 0.84 Scts was largely in line at 25.1% of our FY19 forecast. ■ Office portfolio continues to benefit from positive reversions, while higher room rate and occupancy boosts CPCA performance. ■ Reiterate Hold with a slightly lower DDM-based TP of S$0.56
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