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Bookmark this page   Saturday, 19 May 2012

Today's Headlines CapitaRetail China Trust: Growing with the Chinese consumer Located in mainland China, CRCT’s retail malls are positioned as one-stop family-oriented shopping, dining and entertainment destinations for areas with large population catchment. Based on FY11 figures, CRCT’s portfolio has an average property yield of 6.5% (based on book valuation), which is attractive compared to Singapore retail property yields of around 5-6%. Increasing urbanization and the continued growth in household disposable income serve as powerful long-term drivers for retail sales, which should grow faster than the GDP for at least the next few years. With some 28% of its leases by gross rental income due for renewal this year, CRCT could see significant positive rental reversions. We initiate with a BUY rating and S$1.44 fair value based on a dividend discount model analysis. Previous Headlines >>     Market Pulse MARKET PULSE: Singapore Economy, SMRT, Hoe Leong (17 May 2012) MARKET PULSE: STX OSV, Residential Property, Olam, KS Energy, Biosensors, SIA (16 May 2012) MARKET PULSE: SATS, Midas, Swiber, ECS, Hoe Leong, PEC, STX OSV (15 May 2012) MARKET PULSE: Golden Agri, UOL, Pac Andes, CSE Global, Goodpack, Breadtalk, SATS, Swiber (14 May 2012) MARKET PULSE: Genting, Fortune REIT, UE E&C, City Dev, Wilmar, SIA, Noble, CSE Global, Global Palm, OKP, PAH (11 May 2012) MARKET PULSE: UOB, SingTel, Wilmar, SembMarine, ST Eng, SIA, NOL, CMA, ASL Marine (10 May 2012) MARKET PULSE: SIAEC, COSCO, OKP, CSE Global, SembMarine, Midas (9 May 2012) MARKET PULSE: Osim, Viz Branz, Marco Polo, Cache, SIAEC MARKET PULSE: StarHub, Rotary and MP Marine (07 May 2012) MARKET PULSE: Venture Corp, Roxy-Pacific, Hyflux, CapitaMall Trust, Lian Beng (4 May 2012) more >>   Research CapitaRetail China Trust: Growing with the Chinese consumer Located in mainland China, CRCT’s retail malls are positioned as one-stop family-oriented shopping, dining and entertainment destinations for area ... ECS Holdings: Margins under pressure ECS Holdings (ECS) reported 1Q12 revenue of S$901.6m (+7.1% YoY) which met our expectations. PATMI slumped 41.0% YoY to $6.2m. Excluding forex and ... SMRT Corporation: Holding firm despite new developments Following a directive issued by LTA, SMRT will begin replacing, with immediate effect, the power supplying third rail at locations where hairline ... Hoe Leong Corp: Steep losses from Malaysian associate Hoe Leong Corp (HOE) reported 1Q12 revenue and gross profit of S$20.6m (+32% YoY) and S$5.3m (+23% YoY) respectively, and these were generally in ... Olam Int’l: Expect near-term weakness Olam International Limited (Olam) reported 9MFY12 revenue of S$11,947.7m and estimated core net profit of S$215.3m, meeting 63.2% and 60.5% of our ... Singapore Residential Property: Signs of life in high-end/mid-tier segments URA data yesterday showed 2,660 new private residential homes (including 173 EC units) sold in Apr 12 - down 12% MoM. Excluding EC and landed-unit ... more >>    Strategy Technology Sector: Likely tale of two halves We believe that 1QCY12 could be a point of inflection for the tech sector. We are expecting a gradual improvement in industry conditions from 2QCY ... Oil and Gas sector: Requires more than a release of strategic oil reserves Newswires such as Bloomberg and Reuters have reported that France is in talks with the US and Britain on a possible release of strategic oil reser ... Office REITS: Pressure on capital values Over 2H11, we saw office rents peak as Grade A rents declined 0.5% QoQ in 4Q11 while Grade B rents fell by 0.4%. We expect further rental dips in ... Oil & Gas sector: A busy first quarter in 2012 The oil and gas scene in Singapore witnessed a busy first quarter this year in terms of new contracts secured, M&A news and other corporate action ... Industrial REITs: Expecting firm performance Industrial REITs are likely to continue to post healthy YoY growth in distributable income and DPUs for the financial quarter ending 31 Mar, drive ... Industrial REITs: Still in acquisition mode The acquisition momentum in the industrial REIT subsector has panned out according to our expectations as communicated in our Feb sector report. W ... more >>

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