MAPLETREE LOGISTICS TRUST | BUY
TARGET PRICE: $1.28
MARCH 30 CLOSE: $1.09
DBS GROUP RESEARCH, MARCH 30
We believe that Mapletree Logistics Trust remains on a growth path. Supportive capital markets and availability of acquisition opportunities from the sponsor could drive earnings estimates higher.
Stock offers attractive yields of 6.6-7.0 per cent.
We believe that the Singapore warehouse subsector (about 38 per cent of revenues) is approaching a cyclical bottom by the end of 2017, when new supply will fall off significantly after that.
Rentals should also be on the way to recovery from 2018 onwards. In addition, supported by brighter prospects in its major markets Hong Kong, China and Australia, the group is poised to reverse its downward trend in distributions per unit seen in the past two years.
CAPITALAND | BUY
TARGET PRICE: $3.93
MARCH 30 CLOSE: $3.63
OCBC INVESTMENT RESEARCH, MARCH 30
After meeting representatives from the government of Vietnam recently, the CEO of CapitaLand announced that the group plans to acquire more sites in Vietnam for residential development (2,000 to 2,500 homes) and will continue to seek investment opportunities in offices, serviced residences and integrated developments.
The group also announced that it has signed a Property Management Agreement to manage the retail mall at the new SingPost Centre, which has five floors and a net lettable area of 16,400 square metres.
We like the fact that the company continues to deliver balanced results in an uncertain environment due to its diversified asset portfolio and robust recurring income streams.
RAFFLES MEDICAL GROUP | BUY
TARGET PRICE: $1.70
MARCH 30 CLOSE: $1.41
MAYBANK KIM ENG RESEARCH, MARCH 30
We hosted Raffles Medical at our Invest Asean Singapore Conference on March 21, 2017.
Key discussion points included: its China expansion plans and future prospects; local operation updates and restructuring of newly-acquired MCH.
In the near term, there are several headwinds, including the restructuring costs of MCH, lacklustre medical tourism and start-up costs of new projects.
However, long-term prospects remain sound given its initiative to expand overseas and strong execution track record.
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