UOBKH: Retail Market Monitor: Thursday, June 22, 2017
Singapore Stocks to Watch
* Singapore signs OECD agreements to improve tax transparency
*Ascendas REIT (AREIT SP): Cut to hold from buy by OCBC, PT S$2.66
* Mapletree Industrial (MINT SP): Offers less growth visibility than Ascendas: BI
*Nam Cheong (NCL SP): Gets writ of summons over OCBC debt: Business Times
* Olam (OLAM SP): Necotrans rejected offer by Olam, Challenges reports
*Singapore Press Holdings (SPH SP): JV with Kajima Development wins tender for 99-year land lease for S$1.1b.
Malaysia Stocks to Watch
* Malaysia to form commission of inquiry to look at forex losses
*Berjaya Media (BMED MK): 4Q loss 14m rgt vs 3.5m rgt loss y/y
* Bursa Malaysia (BURSA MK): Cut to neutral at Nomura, PT 11.40 ringgit
*Comfort Gloves (CG MK): 1Q net 10.1m rgt vs 9.4m rgt loss y/y
*DRB-Hicom (DRB MK): To sign definitive pact with Geely on Proton Friday; Shares suspended
*Glomac (GLMC MK): 4Q net 1.3m rgt vs 22.6m rgt y/y
*Johan (JOH MK): 1Q net 9.1m rgt vs 5.8m rgt loss y/y
* SCGM (SCGM MK): 4Q net 5.1m rgt vs 3.5m rgt y/y
- The market is expected to bounce around as oil prices slumped to a 10-month low on growing worries of excess crude supply.
- However, property counters will be supported by possible privatisation of UIC.
- Technically, the STI breached its 50-dma at 3,212 and has also broken below the intermediate uptrend line drawn from late-2016. Immediate support is now at 3,190, with overhead resistance at 3,268.
- Divested its entire 65% stake in Vietnam-based developer Sparkle Value Homes for US$4.6m ($6.4m), or 1.35x P/B.
- Deal expected to net a divestment gain of US$1.2m ($1.7m).
- MKE last had a Hold with TP $3.75.
- MOA with Boeing to provide aircraft maintenance training services to Southeast Asian airlines.
- Aircraft types include current and new generation models including 737, 777 and 787.
- Placement of 87.7m new shares at $0.57 each has been successfully placed out.
- Obtained favourable data from the 24-month follow-up of patients.
- Treatment was using group's Chocolate Heart drug-coated coronary balloon.
- Counter still loss-making and has net liability value of US$0.01/share.
- Disposing two Japanese properties (New City Apartments Kuramae and Minowa) for ¥1.12b ($23.4m).
- Deal expected to reap disposal gain of $0.2m.
- Proceeds earmarked for acquisitions of other properties and investments in the Asia-Pacific region.
- Acquiring 51% stake in Tianjin Belong Faith Energy Minerals for Rmb74.2m.
- Funding via 48.6m new Abterra shares at $0.31 apiece, 8.8% below last traded.
- Pro forma FY16 NTA/share to inch up to 23.08¢ (+0.3%), while LPS will narrow from 9.47¢ to 7.34¢.
- Maturity date for the $45m 6% convertible bond extended from 21 Jun '17 to 21 Sep '17.
*Genting Hong Kong
- 44.9% associate Travellers Int'l ordered to suspend gaming operations at Resorts World Manila.
- This is pending investigation into its alleged liability in a recent deadly attack at its hotel-casino complex.
- Travellers contributed US$32.7m share of profit to GENHK's core pretax loss of US$195.6m in FY16.
- Trades at 0.54x P/B.
- Welcomed Taiwan-based Hua Nan Futures as a derivatives trading member.
- Participation to add liquidity and distribution.
- Trades at 22.8x forward P/E vs HKEx 35.3x.
*Perennial Real Estate
- 90:10 JV with Shanghai Broad Ocean Investments.
- JVCo to set up a specialist medical centre in China.
- Local JV partner is an investment firm with businesses in the consumer and logistics industries.
- Counter trades at a 44% discount to its NAV/share of $1.61.
- Appointed Asian Corporate Advisors as its IFA for the proposed RTO of Yoma's tourism business.