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  Bookmark this page   Saturday, 28 Mar 2015
 
Today's Headlines
First REIT: Visit to Makassar and Manado

We visited two of First REIT’s (FREIT) properties in Indonesia this week – Siloam Hospitals Makassar (SHMK) and Siloam Hospitals Manado & Hotel Aryaduta Manado (MD Property). The hospitals are operated by Siloam International Hospitals and are generally well maintained, equipped with modern medical equipment and have high visitor and patient traffic. Both hospitals are currently participating in the government health insurance programme, which we expect to drive demand for more healthcare services and drugs. Meanwhile, Siloam International Hospitals has projected for solid net operating revenue and EBITDA growth of 49% and 92% in FY15, respectively. Taking into account the robust long-term growth prospects of the Indonesian healthcare market and encouraging signs of Jokowi’s efforts to intensify the implementation of its universal health insurance programme, we raise our terminal growth rate assumption on FREIT from 1% to 1.5%. Consequently, our DDM-derived fair value increases from S$1.40 to S$1.50. Maintain BUY on FREIT.

 
  Market Pulse
Market Pulse: First REIT, Keppel Land (27 Mar 2015)
Market Pulse: Venture Corp, Hyflux, KepLand (26 Mar 2015)
Market Pulse: Noble (25 Mar 2015)
Market Pulse: Yangzijiang, Roxy-Pacific (24 Mar 2015)
Market Pulse: Keppel Land (23 Mar 2015)
Market Pulse: Aviation & Shipping Sectors (20 Mar 2015)
Market Pulse: OUE Hospitality Trust (19 Mar 2015)
Market Pulse: Healthcare Sector, Soilbuild REIT (18 Mar 2015)
Market Pulse: Tiger Airways, United Envirotech, SIA Engineering, Libra Group (17 Mar 2015)
Market Pulse: Nam Cheong, VARD Holdings (16 Mar 2015)
  Research
First REIT: Visit to Makassar and Manado
We visited two of First REIT’s (FREIT) properties in Indonesia this week – Siloam Hospitals Makassar (SHMK) and Siloam Hospitals Manado & Hotel Ar ...
Venture Corp: Downgrade to HOLD on valuation grounds
The World Semiconductor Trade Statistics (WSTS) reported that the world semiconductor market grew 9.9% to US$336b in 2014, mainly driven by 18.2% ...
Noble Group Ltd: Starts lawsuit against Iceberg Research
Noble Group has initiated legal proceedings against Arnaud Vagner, a HK resident, and Enlighten Ace Ltd, a Seychelles company, at the HK High Cour ...
Yangzijiang Shipbuilding: Weathering the storm well
Since we upgraded our rating to Buy in Nov last year, the share price of Yangzijiang Shipbuilding (YZJ) has appreciated by ~10% compared to the ST ...
Keppel Land: KepCorp now holding 87.5%
We are now closing in on the second closing date (26 Mar 2015) for KepCorp’s offer. As at last Friday evening, it was reported that KepCorp has cu ...
Aviation & Shipping Sectors: Clear skies not yet in sight
The aviation and shipping sectors saw a weak end to CY14 with mostly disappointing results. The cost savings on lower oil prices expected by most ...
 
 Strategy
Aviation & Shipping Sectors: Clear skies not yet in sight
The aviation and shipping sectors saw a weak end to CY14 with mostly disappointing results. The cost savings on lower oil prices expected by most ...
Healthcare Sector: Competition likely to remain strong
Following the recent earnings season, we saw steadier earnings from healthcare providers such as Raffles Medical Group (RFMD) and IHH Healthcare B ...
Land Transport Sector: Performing well as expected
The two public transport operators (PTOs) in Singapore, ComfortDelGro (CDG) and SMRT Corp (SMRT) had a smooth end to CY14, as results came in with ...
Consumer Sector: Concerns are less pronounced
All of our selected countries saw lower consumer confidence levels QoQ in 4Q14 but stayed in the optimistic territory except for Malaysia, possibl ...
Telecom Sector: Expect steady growth in 2015
For FY15, the three local telcos have guided for a relatively stable outlook. M1 is probably the most optimistic among them, while StarHub is prob ...
Singapore REITs: Overhang on tax incentives lifted
All 22 S-REITs under OIR’s coverage have announced their 4QCY14 results. With the exception of Ascendas REIT, which missed our estimates slightly, ...
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