Compiled by Claire Huang
FIRST RESOURCES | HOLD
JULY 20 CLOSE: $1.89
TARGET PRICE: $1.95
UOB Kay Hian, July 20
Our visit to First Resources' estate in Pekanbaru reaffirms our positive view of the firm's good estate management and practices.
Female flower ratio has improved for a good production in 2018. Maintain "hold".
Target price: $1.95. Entry price: $1.75.
HUTCHISON PORT HOLDINGS TRUST | SELL
JULY 20 CLOSE: $0.61
TARGET PRICE: $0.42
OCBC Investment Research, July 20
Hutchison Port Holdings Trust's (HPH Trust) Q2 2017 results were within expectations. H1 2017 distribution per unit (DPU) dropped 32.1 per cent year on year to 9.5 Singapore cents, or 42.2 per cent of our full-year forecast, which we consider within expectations.
As a comparison, H1 2015 and H1 2016 DPU each made up around 46 per cent of their respective full-year DPU.
Throughout growth at both HPH Trust's Hong Kong port and Yantian International Container Terminals was offset by a drop in average selling price.
We continue to believe that HPH Trust's deep water assets will offer it a comparative advantage in the coming years when streamlining measures by the alliances exert pressure on transhipment volumes.
Nonetheless, the trust is trading 14.2 per cent above our fair value and a 6 per cent FY17F yield.
Given the recent unit price appreciation, we encourage investors to take profit and downgrade HPH Trust from a "hold" to a "sell" at an unchanged fair value of $0.42.
CAPITALAND COMMERCIAL TRUST | TAKE PROFIT
JULY 20 CLOSE: $1.72
TARGET PRICE: $1.68
RHB Research Institute, July 20
Capitaland Commercial Trust's (CCT) Q2 results came in line.
Despite office market showing signs of bottoming, we expect portfolio negative rent reversions to persist due to high average expiring rents.
While we support CCT recent divestment moves we would be closely watching out for how the proceeds are redeployed.
We also expect some near-term overhang from the conversion of convertible bonds to equity, with the share price currently trading at a hefty 19 per cent premium to conversion price.
Amid these uncertainties, we keep our "take profit" recommendation.
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