RSS

Tag Archives: Stock Market Analysis

Market Research of Keppel DC REIT

Image result for Keppel DC REIT

Keppel DC REIT (KDCREIT) reported its 3Q17 results which met our expectations. Gross revenue and NPI jumped 56.6% and 42.1% YoY to S$35.5m and S$32.3m, respectively.

This was largely driven by the acquisitions of the 90% interest of KDC SGP 3, Milan DC, Cardiff DC and to a smaller extent B10 DC in Dublin (half a month of contribution), coupled with higher variable income from KDC SGP 1 due to an increase in recurring revenue.

DPU grew 16.8% YoY to 1.74 S cents. If we make adjustments to account for the impact of the preferential offering exercise and a one-off net property tax refund in 3Q16, KDCREIT’s adjusted DPU would have increased 4.2% YoY.

For 9M17, KDCREIT’s gross revenue spiked up 41.4% to S$102.2m and formed 76.8% of our FY17 forecast. DPU rose 11.2% to 5.37 S cents (adjusted DPU +4.2% to 5.22 S cents) and constituted 74.0% of our full-year projection.

Operationally, KDCREIT’s portfolio occupancy creeped up 0.3 ppt QoQ to 93.4% as there was slight improvement recorded at KDC SGP 1 and Keppel DC Dublin 1.

Pertaining to Singapore’s data centre industry, management highlighted that while there are still some vacancies in the market, it remains upbeat that this space will eventually be absorbed in the foreseeable future given limited upcoming supply and robust demand, especially from the cloud service providers.

Maintain BUY and S$1.39 fair value estimate on KDCREIT.

More Update:Share trading tipsSGX Stock PicksShare Market signals for Singapore stock Market

Venture Corp Share Investment Singapore www.mmfsolutions.sg

Advertisements
 
Leave a comment

Posted by on October 17, 2017 in Stocks

 

Tags: , , , , , , , , , , , , ,

Good Time to Sell or Buy SingPost

  • Boost from 701Search stake sale
  • Sound approach to rationalization
  • FV estimate updated to S$2.93

FY17 PATMI Boosted by One-time Divestment Gain

Singapore-momentum-stocks-SingPost
SPH reported that FY17 PATMI increased 32.0% YoY to S$350m mostly due to a gain of S$150m from a partial divestment of the group’s stake in the regional online classifieds business, and a fair value gain on investment properties of S$57m, which were partially offset by impairment charges of S$96m on the group’s magazine business and printing presses.

Excluding these one-time charges, however, FY17 recurring earnings declined 20% YoY and FY17 operating revenues also declined 8% lower as the core media business continued to suffer the disruption of digital media. The property segment, however, delivered steady results as revenues increased 1% YoY from higher rental income from the group’s retail assets.

We deem this set of results to be mostly within our expectations. A final dividend of 9 S-cents per share has been proposed, bringing total dividends in FY17 to 15 S-cents.

Catch more – Good Time to Buy Keppel Corp

Sound Approach to Rationalizing Media Business

While there is no denying the impact of digital disruption on the group’s core media earnings – which continue to decline over the latest quarter – our view is that the management team’s approach in rationalizing the business is mostly realistic and sound. The group will complete a 10% staff reduction by this calendar year, incurring retrenchment costs of S$13m, and will also invest for new growth in terms of digital, data analytics, radio broadcasts, video and content marketing capabilities. This will also help the group better meet the changing needs of their market.

Since we have upgraded the stock to a buy rating three weeks ago, we note that the price has rebounded but, as we update our valuation model for the latest results and assumptions, our fair value estimate declines to S$2.93 versus S$3.25 previously. We, therefore, downgrade our rating to HOLD on valuation grounds.

More Update: Stocks To Watch and hot stocks picks with Stock trading tips or Share Market Tips

 
Leave a comment

Posted by on October 13, 2017 in Stocks

 

Tags: , , , , , , , , , , , , ,

Singapore Stock City Developments Limited Update

  • Possible offer for M&C
  • Cash offer of 552.5 pence per share
  • Likely accretive if successful

Possible Cash Offer of 552.5 Pence Per M&C Share

Singapore Stock City Developments Limited Update

CDL announced that they have reached an agreement with the independent directors of Millennium & Copthorne Hotels PLC (M&C) on the price at which these directors will recommend a possible cash offer by CDL for all the outstanding M&C ordinary shares that CDL does not already own. As at 9 Oct 2017, CDL indirectly owns 65.2% of the shares of M&C.

The proposed cash consideration comprises a cash amount of 545 pence per M&C share and a special dividend of 7.5 pence per share which will be payable upon the offer becoming unconditional. This represents a 22.0% premium to the VWAP of 452.7 pence per share over the period of one month before 6 Oct 2017, and also a 21.4% premium to the closing share price of 455.0 pence on 6 Oct 2017.

No Certainty That a Formal Offer Will be Made

We highlight that there is no certainty a formal offer will be made, and discussions on the other terms and conditions of the proposed offer are still ongoing. If successful, we see this as a positive development for CDL which will almost certainly be accretive. Given green shoots in the global economy, the outlook for hospitality assets is broadly turning positive.

In addition, CDL already indirectly owns a substantial stake in M&C, and intimately understands its expansive hotel portfolio and business model as an owner and operator. Against this backdrop, it makes sense for CDL to fully consolidate its hotel subsidiary – if the right price can be agreed upon.

In our view, while the potential cash offer price is fairly attractive for CDL, it also offers M&C shareholders a valuable opportunity for liquidity at a sizeable 21.4% premium to the last closing price on 6 Oct.

Pending a formal offer, our fair value estimate of S$12.90 for CDL remains unchanged. Maintain BUY.

Momentum Singapore Stocks To Watch

  • DELONG
  • APAC REALTY
  • ROWSLEY
  • ASTI
  • GSS ENERGY

So Earn more With our Stock Recommendations

More Update: Stocks To Watch and hot stocks picks with Stock trading tips or Share Market Tips

 
Leave a comment

Posted by on October 11, 2017 in Stocks

 

Tags: , , , , , , , , , , , , ,

Singapore Stock City Developments Limited Update

CDL announced that they have reached an agreement with the independent directors of Millennium & Copthorne Hotels PLC (M&C) on the price at which these independent directors will recommend a possible cash offer to be made by CDL for all the outstanding ordinary shares in M&C that CDL does not already own. As at 9 Oct 2017, CDL indirectly owns 65.2% of the shares of M&C.

Singapore Stock City Developments Limited Update  www.mmfsolutions.sg

The proposed cash consideration comprises of a cash amount of 545 pence per M&C share and a special dividend of 7.5 pence per share which will be payable upon the offer becoming unconditional. This represents a 22.0% premium to the VWAP of 452.7 pence per share over the period of one month before 6 Oct 2017.

We highlight that there is no certainty a formal offer will be made, and discussions on the other terms and conditions of the proposed offer are still ongoing. We see this as a positive development for CDL given the attractive price of the proposed offer and believe a full consolidation of M&C on these terms will be accretive for the group.

Read More- OCBC kept at ‘buy’ on steady earnings growth in 3Q

Maintain BUY with an unchanged fair value estimate of S$12.90.

Singapore Stocks To Watch

  • FALCON ENERGY
  • TAT HONG
  • JAPFA
  • CHINA AVIATION
  • FRENCKEN

So Earn more With our Stock Recommendations

Recent Stock Recommendations

SGX:Buy FALCON ENERGY || Level 0.087|| Cut Profit @ 0.092 || Return 5.75%

KLSE:Buy PALETTE || Level 0.355 || Cut Profit @ 0.400 || Return 12.68%

More Update: Stocks To Watch and hot stocks picks with Stock trading tips or Share Market Tips

 
Leave a comment

Posted by on October 10, 2017 in Stocks

 

Tags: , , , , , , , , , , , , ,

Singapore Share market analysis of Keppel Corporation

Keppel Corporation yesterday announced that Keppel Shipyard has secured a FPSO conversion contract from the long-standing customer, SBM Offshore. The Tina VLCC will be converted to a FPSO which will be deployed to the Liza field (offshore Guyana) developed by ExxonMobil.

SGX Market News www.mmfsolutions.sg

The converted FPSO will have a storage capacity of 1.6m bbl of crude oil and is able to produce up to 120k bbl of oil per day.

Keppel’s work scope includes refurbishment and life extension works, such as the upgrading of living quarters, fabrication and installation of spread mooring systems, as well as the installation and integration of topside modules, and we estimate a contract value of more than S$100m for Keppel.

Maintain BUY with S$7.36 fair value estimate on KEP.

Singapore Penny Stocks To Watch

  • WEE HUR
  • FALCON ENERGY
  • KOH ECO
  • LEY CHOON
  • GKE

So Earn more With our Stock Recommendations

Recent Stock Recommendations

SGX:Buy TAT HONG || Level 0.480|| Cut Profit @ 0.520 || Return 8.33%

KLSE:Buy SENDAI || Level 0.880 || Cut Profit @ 0.955 || Return 8.52%

More Update: Share investmentStock picks or  Equity picksStock investment & Stock market news today

 
Leave a comment

Posted by on October 6, 2017 in Stocks

 

Tags: , , , , , , , , , , , , ,

SGX Market News: Keppel secures contract for vessel conversion project

SINGAPORE (Oct 5): Keppel Shipyard, a wholly-owned subsidiary of Keppel Offshore & Marine (Keppel O&M), has secured a new Floating Production Storage and Offloading vessel (FPSO) conversion contract.

SGX Market News www.mmfsolutions.sg

The contract, from Keppel’s longstanding customer SBM Offshore, is the conversion of a Very Large Crude Carrier (VLCC) into a FPSO.

The shipyard’s work scope includes refurbishment and life extension works, such as the upgrading of living quarters, fabrication and installation of spread mooring systems, as well as the installation and integration of topside modules.

The converted FPSO will have a storage capacity of 1.6 million barrels of crude oil and is capable of producing up to 120,000 barrels of oil per day.

It will also have a gas treatment capacity of about 170 million standard cubic feet per day and a water injection capacity of around 200,000 barrels of water per day.

Upon completion, the vessel will be deployed to the Liza field, located approximately 193km offshore Guyana in the Stabroek block.

We are pleased to undertake the conversion of this FPSO, which is our 25th major project from SBM Offshore,” says Chor How Jat, the managing director of conversions and repairs at Keppel O&M and the managing director of Keppel Shipyard.

“Over the years we have established a base of strong customers, including SBM Offshore, who choose us for our proven track record and value-add in the conversion, upgrading, and repair of vessels,” Chor adds.

The contract is not expected to have a material impact on Keppel Corporation’s net tangible assets or earnings per share for the current financial year.

Separately, UOB Kay Hian analyst Foo Zhi Wei estimates the contract price to fall within the $100-150 million range, which would bring Keppel’s contract wins in the year to date (YTD) close to $1 billion.

This falls within UOB’s contract win assumption of $1.5 billion in total for 2017.

Citing an Upstream report that had previously suggested Keppel’s latest contract win, Foo believes the rumored-to-be Tina VLCC vessel, which is supposedly en-route to Keppel Shipyard, will arrive in Nov this year.

Given the late timing [of the vessel’s arrival], it is likely that revenue recognition for the project will start only in 2018. Contract payments are on milestone terms, with construction expected to span a period of about 2 years,” says the analyst in a Thursday update.

The research house is hence maintaining its “hold” call on Keppel with a price target of $6.71 given limited visibility on the group’s earnings growth in the near-term.

Nonetheless, Keppel remains UOB’s preferred shipyard play in the long-term, given the diversified business units which Foo believes will offset the lower earnings from the group’s Offshore & Marine (O&M) unit, which is currently in a protracted structural downturn.

In the longer run, Keppel holds the potential to unlock value from its diversified asset base, which has not been entirely captured in our valuations,” concludes Foo.

Shares in Keppel Corp closed flat at $6.52 on Wednesday.

Singapore Penny Stocks To Watch

  • FALCON ENERGY
  • TAT HONG
  • JAPFA
  • CHINA AVIATION
  • FRENCKEN

So Earn more With our Stock Recommendations

Recent Stock Recommendations

SGX:Buy TAT HONG || Level 0.480|| Cut Profit @ 0.515 || Return 7.29%

KLSE:Buy PALETTE || Level 0.300 || Cut Profit @ 0.370 || Return 23.33%

More Update: Share investmentStock picks or  Equity picksStock investment & Stock market news today

Source – theedgesingapore

 
Leave a comment

Posted by on October 5, 2017 in Stocks

 

Tags: , , , , , , , , , , , , ,

Singapore News: City Developments and JV partner acquire Amber Park for record-smashing $906.7 million

City Developments (CDL) and its joint venture partner have successfully acquired Amber Park at $906.7 million, setting the record as Singapore’s largest freehold collective sale by dollar value.

Singapore News: City Developments- www.mmfsolutions.sg

The property has an area of 213,675 of, plot ratio of 2.8 and allowable Gross Floor Area of about 598,290 of.

CDL’s wholly-owned subsidiary Citizens Development and joint-venture partner Hong Realty plan to redevelop the site into a luxury condominium comprising four 25-storey blocks with close to 800 units and a basement carpark.

Read More  – Why You’re Failing at Singapore Stock Market

The winning bid was higher than the asking price of $768 million. It was submitted by CDL’s wholly-owned subsidiary Citizens Development and joint-venture partner Hong Realty (Private) Limited. Hong Realty is the private real estate arm of the Hong Leong Group and holds a 20% stake in this project.

Sherman Kwek, CDL CEO-Designate, says, “This is one of our most significant investment deals in the Singapore residential market in recent years. CDL was the original developer for Amber Park in the 1980s and we are honored to be able to redevelop the site into yet another iconic landmark. In addition to its strong locational attributes, a distinct advantage of this site is its freehold status, something that is increasingly rare in Singapore.

Tan Hong Boon, Regional Director at JLL says: “The tender was keenly contested and attracted as many as eight tender submissions. The successful sale price of $906.7 million reflects a land rate of approx. $1,515 psf per plot ratio, based on the allowable gross plot ratio of 2.8. Development charges are not payable for the proposed redevelopment”.

Read More – 24 Hours to Improving Singapore Stock Market

There are not many sites of similar size that are available for redevelopment in the Amber Road location, as most of the larger projects have been sold en bloc and redeveloped over the years. Amber Park could possibly be one of the last collective sale sites with a land area of 200,000 sqft in this precinct,” says Tan.

At this sale price, the owners would expect to receive gross sale proceeds between $4.3 million and $8.3 million,” adds Tan.

As at 12.17pm, shares in CDL are trading 2 cents higher at $11.46.

More Singapore Stocks To Watch

  •  OXLEY
  •  COGENT
  •  GENTING SING
  •  YZJ SHIPBLDG SGD

So Earn more With our Stock Recommendations

Watch once Our trading Recommendations for SGX & KLSE Investor

Recent Stock Recommendations

SGX:Buy HI-P || Level 1.42|| Cut Profit @ 1.50 || Return 5.63%

KLSE:Buy BONIA|| Level 0.635 || Cut Profit @ 0.685|| Return 7.87%

More Update: Share investment, Stock picks or  Equity picks, Stock investment & Stock market news today

 
Leave a comment

Posted by on October 4, 2017 in Stocks

 

Tags: , , , , , , , , , , , , ,