Morning Buzz COMPANY UPDATE  AmFraser Research Team 3,202.74 (0.68%)

 Morning Buzz
Thursday, 23 October 2014
AmFraser Research Team
www.amfraserdirect.com.sg
STI Index (previous day Close) 3,202.74 (0.68%)
COMPANY UPDATE KEPPEL: INDUSTRY FUNDAMENTALS STILL STRONG
Keppel Corpora on remains upbeat about its offshore and marine (O&M) business despite falling oil prices and oversupply in the jack‐
up market. With sound fundamentals and a strong order book, Keppel is op mis c that demand for oil and jack‐ups will remain strong in the longer‐term even though falling oil prices have had a nega ve impact on the group's share price recently. Vol (mil): 1,406.6 / Val (S$ mil): 985.4
Source: Bloomberg
MAJOR STOCK INDICES
DJ Ind Avg
16,461.32
-0.92%
1,927.11
-0.73%
4,382.85
-0.83%
23,403.97
1.37%
S & P 500
Nasdaq Comp
Hang Seng
Source: Bloomberg
COMMODITIES
Gold (SPOT) US$
1,242.20
0.08%
Oil (NYMEX WTI)
80.40
-0.15%
1,136.00
4.22%
Baltic Dry
Source: Bloomberg
EXCHANGE RATES
Loh Chin Hua, CEO of Keppel, explained that although fears of a short
‐term surplus in oil supply outstripping demand growth amid an uneven global recovery have led to the recent fall in oil prices, they have not altered the sound industry fundamentals, even though he acknowledged that this has had an adverse impact on the group's share price. Keppel posted Q3 net profit of S$414 million on Tuesday, 9.5 per cent lower than the S$458 million earned during the same period last year mainly due to lower profit contribu on from its property division, offset by higher earnings from its O&M and investment businesses. Although nega ve sen ments in the sector have also emerged as a result of expenditure cuts by interna onal oil companies (IOCs), declining dayrates and an imminent large number of deepwater and jackup rigs coming out into the market next year, Mr Loh said that deple ng reserves and an ageing fleet ensure that the industry fundamentals are s ll strong. At the same me though, he pointed out that the na onal oil companies (NOCs), steered by governments to drive growth, con nue to raise their expenditure and are making up for the shor all in the spending by the IOCs. Keppel's O&M division has secured year‐to‐date about S$3.7 billion worth of new contracts, with a net orderbook of S$12.7 billion stretching into 2019. For the first nine months of the year, net profit was $1.16 billion, compared to the amount earned for the same period last year. Earnings per share decreased by 1 per cent to 63.9 Singapore cents. Group revenue of $9.36 billion for the nine months was $576 million or 7 per cent above last year, boosted by increased revenue from its O&M business.
USD : SGD 1.2730 / MYR : SGD 0.3903
NEWS BUZZ Source: Bloomberg
 Suntec Real Estate Investment Trust: Q3 unit distribu on higher INTEREST RATES
3-mth Sibor
SGS (10yr)
0.410%
2.214%
 Singapore Exchange: Some bright spots amid SGX's Q1 profit fall  Soilbuild Business Space: on track to meet FY14 DPU forecast Source: Bloomberg
AmFraser Securities Pte Ltd
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Thursday, 23 October 2014
News Buzz Suntec Real Estate Investment Trust (S$1.800)
Q3 unit distribu on higher Suntec Real Estate Investment Trust's DPU for the third quarter ended September inched up to 2.328 Singapore cents on the back of 12.4% rise in total distributable income to S$58.3mil. Yeo See Kiat, chief execu ve officer of ARA Trust Management (Suntec) Limited, the manager of Suntec Reit, a ributed the increase to the comple on of Suntec City Phase 2 and contribu on from 177 Pacific Highway, the Reit's acquisi on in North Sydney. For the quarter under review, net property income rose 21.1% to S$48.8mil, while gross revenue rose 8.5% to S$71.5mil. The overall commi ed occupancy for the retail por olio stood at 98.4% as at Sept 30 and its office por olio achieved 100% commi ed occupancy for Suntec City Office Towers, Park Mall Office, One Raffles Quay and Marina Bay Financial Centre proper es. Singapore Exchange (S$6.860)
Some bright spots amid SGX's Q1 profit fall Singapore Exchange’s reported net profit for the period ended Sept 30 slid to S$78mil, or 7.3 Singapore cents per share. Securi es revenue fell 29% to S$49.1mil as the daily average value of securi es trades shrank to S$1bil. The group is recommending a dividend of four Singapore cents per share. Soilbuild Business Space Reit (S$0.795)
On track to meet FY14 DPU forecast Soilbuild Business Space Reit reported a DPU of 1.546 Singapore cents for the third quarter ended Sept 30. The Q3 DPU came on the back of net property income of S$14.2mil, which exceeded its forecast by 1.7% as the Reit received income from newly acquired Tellus Marine and incurred lower property expenses due to lower maintenance costs for mul ‐tenanted proper es. The gross revenue reported for the quarter was S$16.9mil. Soilbuild Reit enjoyed a por olio occupancy rate of 99.9% as at Sept 30. Soilbuild Reit's distribu on payment of 1.546 Singapore cents per unit is payable on Nov 20. In a separate announcement on Tuesday, Soilbuild Reit said that it is buying two adjacent detached purpose‐built factories located along Tuas Bay Drive for S$55mil. Source: The Business Times / Bloomberg / Straits Times
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Thursday, 23 October 2014
Corporate AcƟon Dividend
Company
Results
Ann Date
Period
DPS
Ex-Date
Book Close
Payable
Share Price
Yield
21-Oct-14
(%)
Keppel REIT - For 29-Sep-14 to 30-Sep-14
21-Jul-14 2Q14 SGD 0.000500
23-Oct-14
27-Oct-14
28-Nov -14 SGD
1.195
0.0
CapitaMall Trust
17-Oct-14 3Q14 SGD 0.027200
24-Oct-14
28-Oct-14
28-Nov -14 SGD
1.970
1.4
First Real Estate Inv t Trust
17-Oct-14 3Q14 SGD 0.020200
24-Oct-14
28-Oct-14
28-Nov -14 SGD
1.230
1.6
Frasers Commercial Trust
20-Oct-14 FY14 SGD 0.022145
27-Oct-14
29-Oct-14
28-Nov -14 SGD
1.400
1.6
Mapletree Logistics Trust
20-Oct-14 2Q15 SGD 0.018800
27-Oct-14
29-Oct-14
28-Nov -14 SGD
1.200
1.6
Parkson Retail Asia
21-Aug-14 FY14 SGD 0.025000
3-Nov-14
5-Nov -14
13-Nov -14 SGD
0.895
2.8
Parkson Retail Asia - Special
21-Aug-14 FY14 SGD 0.030000
3-Nov-14
5-Nov -14
13-Nov -14 SGD
0.895
3.4
Wing Tai Hldgs
28-Aug-14 FY14 SGD 0.030000
6-Nov-14
10-Nov -14
24-Nov -14 SGD
1.735
1.7
Wing Tai Hldgs
28-Aug-14 FY14 SGD 0.030000
6-Nov-14
10-Nov -14
24-Nov -14 SGD
1.735
1.7
Singapore Press Hldgs
15-Oct-14 FY14 SGD 0.080000
8-Dec-14
10-Dec-14
23-Dec-14 SGD
4.210
1.9
Singapore Press Hldgs - Special
15-Oct-14 FY14 SGD 0.060000
8-Dec-14
10-Dec-14
23-Dec-14 SGD
4.210
1.4
Ex-Date
Book Close
13-Oct-14
10-Oct-14
* Include Ordinary, Cash, Special, Bonus, Variable and Base
Rights & Bonus Issue
Company
Rights Issue
Right Trading Period
From
To
15-Oct-14
20-Oct-14
29-Oct-14
14-Oct-14
17-Oct-14
28-Oct-14
2 Rights Shares @ S$0.01 each Rights
Innopac Holdings
Share + 1 free detachable Wrt for ev ery 1
ex isting ord share held
1 Rights Share @ S$0.06 each Rights
Jubilee Industries Hldgs
Share + 1 free wrt for ev ery 2 ex isting ord
stock
Source: SGX Annoucement
Innopac Holdings Warrants: Ex pected date for commencement of trading on Thursday , 13-Nov ember-2014 from 9.00 a.m., at an ex ercise price of S$0.012 for each
new share.
Innopac Holdings Warrants: Ex pected date for commencement of trading on Thursday , 13-Nov ember-2014 from 9.00 a.m., at an ex ercise price of S$0.012 for each
new share.
BUYOUTS
Lee Kim Tah Holdings
Offer
Price
SGD 1.08
Remarks
Closing Date
Cash
5.30 p.m. on 13 Nov 2014
Offeror
Lee Kim Tah Inv estments Pte Ltd
Source: SGX Annoucement
AmFraser Securities Pte Ltd
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AmFraser
Thursday, 23 October 2014
Financial Calendar Monday
Tuesday
20-Oct
SG (Oct 2014): 2nd Open Bidding
Exercise for COE Start @ 12.00 noon
Wednesday
21-Oct
SG (OCT 2014): 2nd Open Bidding
Exercise for COE
Q2: Mapletree Logistics Trust
Q1: Spore Exchange
Q3: Keppel Land
Q2: Mapletree Industrial Trust
Q4: Frasers Commercial Trust
Q3: Keppel Corp / Soilbuild Biz Space
/ Suntec REIT
Thursday
Friday
22-Oct
SG (Oct 2014): 2nd Open Bidding
Exercise for COE End @ 4.00 p.m.
23-Oct
Q2: Ascendas REIT
SG (Sept 2014): CPI
Q3: Aztech Grp / Cache Logistics
Trust / Cambridge Industrial Trust
SG: 3Q14 Real Estate Statistics
Q4: Frasers Centrepoint Trust
Q1: Micro-Mechanics Hldgs (Release on
Sat, 25-Oct)
Q2: Mapletree Commercial Trust /
Mapletree Greater China
Q3: CapitaCommercial Trust /
CapitaRetail China Trust / Utd
Overseas Insurance
Deepavali
27-Oct
24-Oct
28-Oct
Q2: Ascendas India Trust
Q3: CDL Hospitality Trust / OSIM /
STATS ChipPAC
Q3: Hutchision Port Hldgs Trust /
Raffles Medical Grp
*Q1: Micro-Mechanics Hldgs
29-Oct
Q3: Great Eastern Hldgs
30-Oct
Q1: Yamada Green Resources
31-Oct
SG (Sept 2014): Unemployment
Rate & Employment
Q2: AIMS AMP Capital
Q3: First Ship Lease Trust / Indofood
Agri Resources / OCBC (Before mkt
Q4: Second Chance Properties
open) / Parkway Life REIT / Starhill Global
REIT / Tuan Sing / UOB
Q2: SMRT
Q3: DBS ( Before mkt open) / Forterra
Trust / Fragrance Grp / Global
Premium Htls / OUE Commercial REIT
*Q3: CapitaLand
3-Nov-14
SG (Nov 2014): 1st Open Bidding
Exercise for COE Start @ 12.00 noon
4-Nov
SG (Nov 2014): 1st Open Bidding
Exercise for COE
Q2: CitySpring Infrastructure Trust
Q2: Global Logistic Properties
Q3: Cosco Corp
Q3: Hi-P Int'l / Rickmers Maritime
5-Nov
SG (Nov 2014): 1st Open Bidding
Exercise for COE End @ 4.00 p.m.
Q3: Sembcorp Maritime / StarHub
6-Nov
Q2: SIA / Valuetronics Hldgs
7-Nov
Q3: Far East Hospitality Trust / IFS
Capital / ST Engrg
Q3: Asian Pay Television Trust /
China Aviation Oil / Sembcorp
Industries
*Q3: Elec & Eltek Int'l
10-Nov
11-Nov
Q3: Petra Foods / Vard Hldgs /
Wilmar Int'l
Q3: Htl Royal / Super Grp
17-Nov
18-Nov
12-Nov
Q3: HTL Int'l
Q2: AusNet Services
Q4: Frasers Centrepoint
Q3: City Devpts / Macquarie Int'l
Infras Fund
*Q2: SATS
19-Nov
14-Nov
Q2: Terratech Grp (Release on Sat, 15-
Q1: Croesus Retail Trust
SG: Prices of Private Residential Units
Sold by Developers
SG (Nov 2014): 2nd Open Bidding
Exercise for COE Start @ 12.00 noon
13-Nov
Nov)
*Q2: Azeus Systems
20-Nov
21-Nov
SG: 3Q14 GDP
SG (Nov 2014): 2nd Open Bidding
Exercise for COE
SG (Nov 2014): 2nd Open Bidding
Exercise for COE End @ 4.00 p.m.
* TentaƟve
Source: Company; Bloomberg
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Thursday, 23 October 2014
Disclaimer
This report is prepared by AmFraser SecuriƟes Pte Ltd (“AmFraser”), which is a holder of a capital markets services licence and an exempt
financial adviser in Singapore.
This report is provided for informa on only and is not an offer or a solicita on to deal in securi es or to enter into any legal rela ons, nor an advice or a recommenda on with respect to such securi es. This report is prepared for general circula on. It does not have regard to the specific investment objec ves, financial situa on and the par cular needs of any recipient hereof. You should independently evaluate par cular investments and consult an independent financial adviser before dealing in any securi es men oned in this report. This report is confiden al. This report may not be published, circulated, reproduced or distributed in whole or in part by any recipient of this report to any other person without the prior wri en consent of AmFraser. This report is not intended for distribu on, publica on to or use by any person in any jurisdic on outside Singapore or any other jurisdic on as AmFraser may determine in its absolute discre on, where the distribu on, publica on or use of this report would be contrary to applicable law or would subject AmFraser and its connected persons (as defined in the Financial Advisers Act, Chapter 110 of Singapore) to any registra on, licensing or other requirements within such jurisdic on. The informa on or views in the report (“Informa on”) has been obtained or derived from sources believed by AmFraser to be reliable. However, AmFraser makes no representa on as to the accuracy or completeness of such sources or the Informa on and AmFraser accepts no liability whatsoever for any loss or damage arising from the use of or reliance on the Informa on. AmFraser and its connected persons may have issued other reports expressing views different from the Informa on and all views expressed in all reports of AmFraser and its connected persons are subject to change without no ce. AmFraser reserves the right to act upon or use the Informa on at any me, including before its publica on herein. Except as otherwise indicated below, (1) AmFraser, its connected persons and its officers, employees and representa ves may, to the extent permi ed by law, transact with, perform or provide broking, underwri ng, corporate finance‐related or other services for or solicit business from, the subject corpora on(s) referred to in this report; (2) AmFraser, its connected persons and its officers, employees and representa ves may also, to the extent permi ed by law, transact with, perform or provide broking or other services for or solicit business from, other persons in respect of dealings in the securi es referred to in this report or other investments related thereto; and (3) the officers, employees and representa ves of AmFraser may also serve on the board of directors or in trustee posi ons with the subject corpora on(s) referred to in this report. (All of the foregoing is herea er referred to as the “Subject Business”.) However, as of the date of this report, neither AmFraser nor its representa ve(s) who produced this report (each a “research analyst”), has any proprietary posi on or material interest in, and AmFraser does not make any market in, the securi es which are recommended in this report. Each research analyst of AmFraser who produced this report hereby cer fies that (1) the views expressed in this report accurately reflect his/
her personal views about all of the subject corpora on(s) and securi es in this report; (2) the report was produced independently by him/
her; (3) he/she does not carry out, whether for himself/herself or on behalf of AmFraser or any other person, any of the Subject Business involving any of the subject corpora on(s) or securi es referred to in this report; and (4) he/she has not received and will not receive any compensa on that is directly or indirectly related or linked to the recommenda ons or views expressed in this report or to any sales, trading, dealing or corporate finance advisory services or transac on in respect of the securi es in this report. However, the compensa on received by each such research analyst is based upon various factors, including AmFraser’s total revenues, a por on of which are generated from AmFraser’s business of dealing in securi es. Copyright 2014. AmFraser Securi es Pte Ltd. All rights reserved. ______________________________ LEE Wing How
for AmFraser SecuriƟes Pte Ltd
AmFraser Securities Pte Ltd
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