SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

<div><em><strong>Non- SGX Report: These equity research reports are not written by the SGX.</strong>&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</em></div>
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<h2>Roxy-Pacific Holdings Limited</h2>
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<h3>Privatisation Offer</h3>
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<p><strong>Offer to delist.</strong> Roxy-Pacific Holdings on 20 September announced a pre-conditional voluntary general offer from TKL &amp; Family for all the issued ordinary shares in the company. The offeror is the bid vehicle of a consortium formed by 11 individuals, including the chairman and chief executive of Roxy- Pacific, Mr Teo Hong Lim. The pre-condition pertains to all necessary consents under the Overseas Investment Act of New Zealand.</p>
<p>The offer price of S$0.485 is at a 33.4% discount to adjusted net asset value of S$0.7287/share (as at 30 Jun 21). 31 Dec 20’s ANAV was S$0.7215/share. Currently, the undertaking parties hold 76.44% of the total number of issued shares.</p>
<p><strong>Emerging from the trough.</strong> The Group posted 19.6% yoy increase in revenue to S$141.2m in 1HFY21, from S$118.1m a year ago. This was largely due to higher revenue from property development (+27.4%), offset by lower revenue from hotel ownership (-29.2%). Property investment segment increased slightly (+8.5%). 1HFY21 PATMI was S$5.9m, doubled from S$2.8m a year ago.</p>
<p><strong>Property development.</strong> We believe that with residential prices holding up, along with Roxy-Pacific’s unbooked contracted sales (S$564.4m), toplines will be firm for the Group. It has 2 properties under development with a forecasted gross development value of S$224.1m.</p>
<p><strong>Hotel ownership.</strong> Despite the global vaccination drive and higher vaccination rates, the world continues to grapple with the virus. We expect tourism to remain weak for the rest of 2021. Although there is hope of a possible return of travel when Singapore opens up to more countries under the VTL, large- scale leisure travel in 2022 remains an uncertainty.</p>
<p>We noted that Singapore-listed property developers are trading at a significant discount to their adjusted net asset values, ranging from discount rates of 15.0% to 73.6%.</p>
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Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.






Roxy-Pacific Holdings Limited




Privatisation Offer




Offer to delist. Roxy-Pacific Holdings on 20 September announced a pre-conditional voluntary general offer from TKL &amp; Family for all the issued ordinary shares in the company. The offeror is the bid vehicle of a consortium formed by 11 individuals, including the chairman and chief executive of Roxy- Pacific, Mr Teo Hong Lim. The pre-condition pertains to all necessary consents under the Overseas Investment Act of New Zealand.
The offer price of S$0.485 is at a 33.4% discount to adjusted net asset value of S$0.7287/share (as at 30 Jun 21). 31 Dec 20’s ANAV was S$0.7215/share. Currently, the undertaking parties hold 76.44% of the total number of issued shares.
Emerging from the trough. The Group posted 19.6% yoy increase in revenue to S$141.2m in 1HFY21, from S$118.1m a year ago. This was largely due to higher revenue from property development (+27.4%), offset by lower revenue from hotel ownership (-29.2%). Property investment segment increased slightly (+8.5%). 1HFY21 PATMI was S$5.9m, doubled from S$2.8m a year ago.
Property development. We believe that with residential prices holding up, along with Roxy-Pacific’s unbooked contracted sales (S$564.4m), toplines will be firm for the Group. It has 2 properties under development with a forecasted gross development value of S$224.1m.
Hotel ownership. Despite the global vaccination drive and higher vaccination rates, the world continues to grapple with the virus. We expect tourism to remain weak for the rest of 2021. Although there is hope of a possible return of travel when Singapore opens up to more countries under the VTL, large- scale leisure travel in 2022 remains an uncertainty.
We noted that Singapore-listed property developers are trading at a significant discount to their adjusted net asset values, ranging from discount rates of 15.0% to 73.6%.














(Non-SGX Report) Roxy-Pacific Holdings Limited: Privatisation Offer

<p><em><strong>Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;</strong>SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</em></p>
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<h2>Initiating Coverage</h2>
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<h3>Roxy-Pacific Holdings Limited</h3>
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<p><strong>Company description</strong><br><span style="font-size: var(--content-font-size);">Roxy-Pacific Holdings Limited (Roxy-Pacific or the Company) is a property and hospitality group with an Asia-Pacific focus. The Group, comprising Roxy-Pacific and its subsidiaries, is principally engaged in the development and sale of residential and commercial properties. It also has business operations in hotel ownership and property investment.</span></p>
<div>
<p><strong>Summary</strong><br>For the half-year ended 30 June 2021 (1H FY2021), the Group’s revenue increased by 20% year-on-year (y-o-y) to S$141.2 million, mainly due to stronger performance from its property development and property investment segments. Gross profit rose by 43% y-o-y to S$25.4 million and resulting gross profit margin of 18% was higher than 15% a year ago. During the period, distribution &amp; selling expenses rose by 5% y-o-y, while administrative expenses declined by 3% y-o-y. Other operating expenses rose by 2% y-o-y on lower depreciation, while finance costs fell by 25% y-o-y mainly due to lower interest rates. Share of results from associates and joint ventures fell by 80%, mainly due to absence of profit from the sale of property at Ginza, Japan which was completed in 1H FY2020. For the period, shareholders’ profit amounted to S$5.9 million compared to S$2.8 million a year ago, translating to an earnings per share (EPS) of 0.45 cents. No dividends were declared for the period.</p>
<p><strong>Recommendation</strong><br>Based on an adjusted NAV per share of 72.57 cents as at 30 June 2021, Roxy-Pacific is currently trading at a P/NAV of 0.56x. The results from our peer comparison analysis suggest that the Company is trading close to the peers’ average of 0.59x. If its P/NAV were to adjust to the peers’ average P/NAV, the estimated target price would be S$0.428. This estimated target price represents a marginal upside of 4.39% from the current share price of S$0.410. We believe this could suggest that any potential share price upside has already been priced in. However, upside potential in the share price may be possible, given strong development profits to be recognised over the next few years from the Group’s existing residential launches in Singapore. Moreover, the Group’s upcoming residential developments at Jalan Molek and Guillemard Road and Institution Hill are potential catalysts which could bolster future earnings. The Group is also expanding its recurring income stream through the acquisition of new commercial properties in Melbourne and Tokyo as well as the development of a new resort in Phuket. Nevertheless, we are adopting a conservative approach to issue a neutral recommendation on Roxy-Pacific.</p>
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Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.

Initiating Coverage

Roxy-Pacific Holdings Limited

Company description Roxy-Pacific Holdings Limited (Roxy-Pacific or the Company) is a property and hospitality group with an Asia-Pacific focus. The Group, comprising Roxy-Pacific and its subsidiaries, is principally engaged in the development and sale of residential and commercial properties. It also has business operations in hotel ownership and property investment.

Summary For the half-year ended 30 June 2021 (1H FY2021), the Group’s revenue increased by 20% year-on-year (y-o-y) to S$141.2 million, mainly due to stronger performance from its property development and property investment segments. Gross profit rose by 43% y-o-y to S$25.4 million and resulting gross profit margin of 18% was higher than 15% a year ago. During the period, distribution &amp; selling expenses rose by 5% y-o-y, while administrative expenses declined by 3% y-o-y. Other operating expenses rose by 2% y-o-y on lower depreciation, while finance costs fell by 25% y-o-y mainly due to lower interest rates. Share of results from associates and joint ventures fell by 80%, mainly due to absence of profit from the sale of property at Ginza, Japan which was completed in 1H FY2020. For the period, shareholders’ profit amounted to S$5.9 million compared to S$2.8 million a year ago, translating to an earnings per share (EPS) of 0.45 cents. No dividends were declared for the period.
Recommendation Based on an adjusted NAV per share of 72.57 cents as at 30 June 2021, Roxy-Pacific is currently trading at a P/NAV of 0.56x. The results from our peer comparison analysis suggest that the Company is trading close to the peers’ average of 0.59x. If its P/NAV were to adjust to the peers’ average P/NAV, the estimated target price would be S$0.428. This estimated target price represents a marginal upside of 4.39% from the current share price of S$0.410. We believe this could suggest that any potential share price upside has already been priced in. However, upside potential in the share price may be possible, given strong development profits to be recognised over the next few years from the Group’s existing residential launches in Singapore. Moreover, the Group’s upcoming residential developments at Jalan Molek and Guillemard Road and Institution Hill are potential catalysts which could bolster future earnings. The Group is also expanding its recurring income stream through the acquisition of new commercial properties in Melbourne and Tokyo as well as the development of a new resort in Phuket. Nevertheless, we are adopting a conservative approach to issue a neutral recommendation on Roxy-Pacific.





(Non-SGX Report) Initiating Coverage: Roxy-Pacific Holdings Limited

<p><em><strong>Non- SGX Report: These equity research reports are not written by the SGX</strong>.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</em></p>
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<div>
<div>
<div>
<h2>Roxy-Pacific Holdings Limited</h2>
<div>
<div>
<div>
<div>
<h3>Exiting the bottom</h3>
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<div>
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<div>
<p><strong>The Group posted a 19.6% yoy increase in revenue</strong> to S$141.2m in 1HFY21, up from S$118.1m a year ago, largely with the revenue growth from the property development segment (+27.4%), which made up 89.6% of 1H revenue. This was due to higher percentage of revenue recognition from some projects. Other income included one-off S$4.1m fair value gain from investment property at NZI Centre. Overall 1HFY21 PATMI was S$5.9m, up 2.1x from S$2.8m a year ago.</p>
<p>As at 30 Jun, total attributable pre-sale revenue was S$564.4m (up from $552.1m in Jan). Net debt to adjusted NAV rose from 0.64x (Dec 20) to 0.70x. ANAV per share was 72.87 cents/share (Jun 21), up from 72.15 cents/share (Dec 20).</p>
<p><strong>Upcoming development projects.</strong> Roxy-Pacific previously acquired two 999-year/freehold sites at Jalan Molek/Guillemard Road (100% interest) and Institution Hill (42% interest). A total of 197 units is expected, which they plan to launch for sale from 2HFY21.</p>
<p><strong>Private residential property prices unwavering from its highs.</strong><br>The private residential property price index hit 163.5 in Q2. As at Q2, 19,384 private residential units remained unsold (Q1: 21,602, Q4 20: 24,300). We expect the current low supply in the market to continue to be a driver of property sale prices. In the face of rising million-dollar HDB flats sold, property cooling measures may be probable. If introduced for HDB flats, private residential property will become more attractive.</p>
<p><strong>Expect high construction costs, delays in construction still.</strong><br>We expect high construction costs and delays in construction to continue, at least in the near-term. Singapore in July announced a pilot programme to bring in foreign workforce to address the manpower supply crunch issue. We see higher global vaccination rates to be catalyst to the manpower crunch easing, but the worsening situation in key manpower supply areas like Malaysia and India continue to pose as headwinds.</p>
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Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.




Roxy-Pacific Holdings Limited




Exiting the bottom




The Group posted a 19.6% yoy increase in revenue to S$141.2m in 1HFY21, up from S$118.1m a year ago, largely with the revenue growth from the property development segment (+27.4%), which made up 89.6% of 1H revenue. This was due to higher percentage of revenue recognition from some projects. Other income included one-off S$4.1m fair value gain from investment property at NZI Centre. Overall 1HFY21 PATMI was S$5.9m, up 2.1x from S$2.8m a year ago.
As at 30 Jun, total attributable pre-sale revenue was S$564.4m (up from $552.1m in Jan). Net debt to adjusted NAV rose from 0.64x (Dec 20) to 0.70x. ANAV per share was 72.87 cents/share (Jun 21), up from 72.15 cents/share (Dec 20).
Upcoming development projects. Roxy-Pacific previously acquired two 999-year/freehold sites at Jalan Molek/Guillemard Road (100% interest) and Institution Hill (42% interest). A total of 197 units is expected, which they plan to launch for sale from 2HFY21.
Private residential property prices unwavering from its highs. The private residential property price index hit 163.5 in Q2. As at Q2, 19,384 private residential units remained unsold (Q1: 21,602, Q4 20: 24,300). We expect the current low supply in the market to continue to be a driver of property sale prices. In the face of rising million-dollar HDB flats sold, property cooling measures may be probable. If introduced for HDB flats, private residential property will become more attractive.
Expect high construction costs, delays in construction still. We expect high construction costs and delays in construction to continue, at least in the near-term. Singapore in July announced a pilot programme to bring in foreign workforce to address the manpower supply crunch issue. We see higher global vaccination rates to be catalyst to the manpower crunch easing, but the worsening situation in key manpower supply areas like Malaysia and India continue to pose as headwinds.













(Non-SGX Report) Roxy-Pacific Holdings Limited: Exiting the Bottom

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<h2>Singapore</h2>
<h3>SREITs results in a glance (see detailed spreadsheet and calendar attached)</h3>
<table class="table table-striped">
<tbody>
<tr>
<td style="width: 136.6pt;">
<p> </p>
</td>
<td style="width: 136.55pt;">
<p>DASIN</p>
</td>
<td style="width: 136.55pt;">
<p>SASSR</p>
</td>
<td style="width: 136.55pt;">
<p>BHGREIT</p>
</td>
<td style="width: 136.55pt;">
<p>CLCT</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>Period</p>
</td>
<td style="width: 136.55pt;">
<p>1Q21</p>
</td>
<td style="width: 136.55pt;">
<p>1Q21</p>
</td>
<td style="width: 136.55pt;">
<p>1Q21</p>
</td>
<td style="width: 136.55pt;">
<p>1Q21</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>Gross Revenue (S$ m)</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed in SGD terms; RMB127.3m (+87.4% YoY); or RMB101.6m<br>if w/o Shunde Metro Mall and Tanbei Metro Mall (+51.0% YoY)</p>
</td>
<td style="width: 136.55pt;">
<p>EMA Rental Income: 34.1 (+23.4% YoY)</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>NPI (S$ m)</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
<td style="width: 136.55pt;">
<p>EMA Rental Income (Excluding straight-line adjustments): 32.3 (+27.8% YoY)</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
<td style="width: 136.55pt;">
<p>264.2 (RMB)</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>DPU (S$ c)</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
<td style="width: 136.55pt;">
<p>1.759 (+31.9% YoY)</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>NAV per Unit (S$)</p>
</td>
<td style="width: 136.55pt;">
<p>1.41 (Based on 4Q20)</p>
</td>
<td style="width: 136.55pt;">
<p>0.922</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>P/B (x)</p>
</td>
<td style="width: 136.55pt;">
<p>0.510</p>
</td>
<td style="width: 136.55pt;">
<p>1.00</p>
</td>
<td style="width: 136.55pt;">
<p>0.64 (Based on 4Q20 NAV)</p>
</td>
<td style="width: 136.55pt;">
<p>0.94 (Based on 4Q20 NAV)</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>Occupancy (%)</p>
</td>
<td style="width: 136.55pt;">
<p>96.1</p>
</td>
<td style="width: 136.55pt;">
<p>93.5</p>
</td>
<td style="width: 136.55pt;">
<p>92.1</p>
</td>
<td style="width: 136.55pt;">
<p>Retail: 94.4<br>Business Parks: 92.1</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>Reversion (%)</p>
</td>
<td style="width: 136.55pt;">
<p>NA</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>Gearing (%)</p>
</td>
<td style="width: 136.55pt;">
<p>37.2</p>
</td>
<td style="width: 136.55pt;">
<p>27.6</p>
</td>
<td style="width: 136.55pt;">
<p>35.6</p>
</td>
<td style="width: 136.55pt;">
<p>35.1</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>Cost of Debt (%)</p>
</td>
<td style="width: 136.55pt;">
<p>NA</p>
</td>
<td style="width: 136.55pt;">
<p>3.3</p>
</td>
<td style="width: 136.55pt;">
<p>3.8</p>
</td>
<td style="width: 136.55pt;">
<p>2.51</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>1 Yr Fwd Yield (%)</p>
</td>
<td style="width: 136.55pt;">
<p>6.99</p>
</td>
<td style="width: 136.55pt;">
<p>7.46</p>
</td>
<td style="width: 136.55pt;">
<p>NA</p>
</td>
<td style="width: 136.55pt;">
<p>6.21</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>Debt Hedged (%)</p>
</td>
<td style="width: 136.55pt;">
<p>NA</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
<td style="width: 136.55pt;">
<p>60% of offshore loans</p>
</td>
<td style="width: 136.55pt;">
<p>~70</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>Target Price</p>
</td>
<td style="width: 136.55pt;">
<p>S$0.81</p>
</td>
<td style="width: 136.55pt;">
<p>NA</p>
</td>
<td style="width: 136.55pt;">
<p>NA</p>
</td>
<td style="width: 136.55pt;">
<p>NA</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>Rating</p>
</td>
<td style="width: 136.55pt;">
<p>BUY</p>
</td>
<td style="width: 136.55pt;">
<p>NA</p>
</td>
<td style="width: 136.55pt;">
<p>NA</p>
</td>
<td style="width: 136.55pt;">
<p>NA</p>
</td>
</tr>
</tbody>
</table>
<h3>
<a href="https://www.smartkarma.com/entities/dasin-retail-trust" target="_blank" data-smartkarma-citation="entities:23743" rel="noopener">Dasin Retail Trust (DASIN SP)</a> 1Q21 Business Updates – Revenue recovered to 94% of pre-Covid level; ARA’s strategic stake underscores GBA’s potential</h3>
<ul>
<li>1Q21 revenue (in RMB terms; on same-mall basis) increased 51.0% YoY to ~RMB101.6m. Total revenues of the four malls (IPO portfolio), namely Shiqi Metro Mall, Xiaolan Metro Mall, Ocean Metro Mall and Dasin E-Colour, has recovered to 94% of 1Q19 (pre-pandemic)’s level. Including Shunde Metro Mall and Tanbei Metro Mall (8Jul20), 1Q21 revenue (in RMB terms) increased 87.4% YoY to ~RMB127.3m</li>
<li>Overall portfolio committed occupancy stabilized at 96.1% (vs. 96.5% in 4Q20 and 96.1% in 3Q20). ~9,085sqm (12.7% of total Ocean Metro Mall NLA) of “furniture and finishing” space at the mall has been reconfigured in 4Q20 into a children’s education area, which brought a positive rental reversion of ~46%. Portfolio WALE stood at 5.9 years by NLA and 3.6 years by GRI. ~31.1% of GRI will be due for renewal in FY21E</li>
<li>Portfolio gearing stands at 37.2% (vs. 37.8% in 4Q20 and 38.5% in 3Q20). DASIN is currently negotiating with banks for extension of loans amounting to S$235.2m, which are due on 18Jul21</li>
<li>Mr. Zhang Zhencheng, Chairman and controlling shareholder of the Trustee-Manager, as well as Aqua Wealth Holdings Limited (a controlling unitholder of the Trust), had entered into a sale and purchase agreement with ARA DSRT (Holdings) and ARA Real Estate Investors 22 in pursuance of a strategic partnership with ARA Asset Management. ARA will acquire 50% of interest in the Trustee-Manager from Mr. Zhang Zhencheng, as well as ~5.0% of interest in DASIN from Aqua Wealth Holdings Limited in two separate tranches. The sale of 50% stake in Trustee-Manager and first tranche of DASIN’s units (2.5% stake) is expected to complete by May21</li>
<li>DASIN currently trades at 7.0% FY21E yield and 0.51x P/B.</li>
</ul>
<p>Comments: 1Q21 Revenue forms 23.6% of our full-year FY21E revenue (based on avg. 1Q21 RMB/SGD of 4.8727). We are encouraged by Dasin E-Colour’s strong revenue recovery (to near pre-Covid level) despite a challenging occupancy profile of 86.5% (vs. portfolio average of 96.1% and 1Q20’s 91.9%), thus translating to a robust passing rent at ~RMB125.6psm pm with +107% YoY reversions. Meanwhile, its 2 mature assets, namely Shiqi Metro Mall and Xiaolan Metro Mall (contributed to ~45.6% of 1Q21 revenue), appear to be on track for a sustained recovery – upticks in both occupancy rates and passing rents. The two newly acquired Shunde Metro Mall and Tanbei Metro Mall should provide inorganic boost to with its full-year contributions (vs. 6 mths contributions in FY20). Notwithstanding a challenging leasing market (portfolio occupancy remains below pre-Covid level of 97-98%), DASIN’s lease structure with high fixed components (fixed rent and fixed rent with built-in escalation) at 82.8%% of Mar21 GRI, offer income stability somewhat. We have a BUY rating with TP of S$0.81/Unit for DASIN.</p>
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<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/207/030/original/image021.png?1621332221" class="editor-image img-responsive" data-smartkarma-image-id="207030"></figure>
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Singapore
SREITs results in a glance (see detailed spreadsheet and calendar attached)




 


DASIN


SASSR


BHGREIT


CLCT




Period


1Q21


1Q21


1Q21


1Q21




Gross Revenue (S$ m)


Not Disclosed in SGD terms; RMB127.3m (+87.4% YoY); or RMB101.6m if w/o Shunde Metro Mall and Tanbei Metro Mall (+51.0% YoY)


EMA Rental Income: 34.1 (+23.4% YoY)


Not Disclosed


Not Disclosed




NPI (S$ m)


Not Disclosed


EMA Rental Income (Excluding straight-line adjustments): 32.3 (+27.8% YoY)


Not Disclosed


264.2 (RMB)




DPU (S$ c)


Not Disclosed


1.759 (+31.9% YoY)


Not Disclosed


Not Disclosed




NAV per Unit (S$)


1.41 (Based on 4Q20)


0.922


Not Disclosed


Not Disclosed




P/B (x)


0.510


1.00


0.64 (Based on 4Q20 NAV)


0.94 (Based on 4Q20 NAV)




Occupancy (%)


96.1


93.5


92.1


Retail: 94.4 Business Parks: 92.1




Reversion (%)


NA


Not Disclosed


Not Disclosed


Not Disclosed




Gearing (%)


37.2


27.6


35.6


35.1




Cost of Debt (%)


NA


3.3


3.8


2.51




1 Yr Fwd Yield (%)


6.99


7.46


NA


6.21




Debt Hedged (%)


NA


Not Disclosed


60% of offshore loans


~70




Target Price


S$0.81


NA


NA


NA




Rating


BUY


NA


NA


NA





Dasin Retail Trust (DASIN SP) 1Q21 Business Updates – Revenue recovered to 94% of pre-Covid level; ARA’s strategic stake underscores GBA’s potential

1Q21 revenue (in RMB terms; on same-mall basis) increased 51.0% YoY to ~RMB101.6m. Total revenues of the four malls (IPO portfolio), namely Shiqi Metro Mall, Xiaolan Metro Mall, Ocean Metro Mall and Dasin E-Colour, has recovered to 94% of 1Q19 (pre-pandemic)’s level. Including Shunde Metro Mall and Tanbei Metro Mall (8Jul20), 1Q21 revenue (in RMB terms) increased 87.4% YoY to ~RMB127.3m
Overall portfolio committed occupancy stabilized at 96.1% (vs. 96.5% in 4Q20 and 96.1% in 3Q20). ~9,085sqm (12.7% of total Ocean Metro Mall NLA) of “furniture and finishing” space at the mall has been reconfigured in 4Q20 into a children’s education area, which brought a positive rental reversion of ~46%. Portfolio WALE stood at 5.9 years by NLA and 3.6 years by GRI. ~31.1% of GRI will be due for renewal in FY21E
Portfolio gearing stands at 37.2% (vs. 37.8% in 4Q20 and 38.5% in 3Q20). DASIN is currently negotiating with banks for extension of loans amounting to S$235.2m, which are due on 18Jul21
Mr. Zhang Zhencheng, Chairman and controlling shareholder of the Trustee-Manager, as well as Aqua Wealth Holdings Limited (a controlling unitholder of the Trust), had entered into a sale and purchase agreement with ARA DSRT (Holdings) and ARA Real Estate Investors 22 in pursuance of a strategic partnership with ARA Asset Management. ARA will acquire 50% of interest in the Trustee-Manager from Mr. Zhang Zhencheng, as well as ~5.0% of interest in DASIN from Aqua Wealth Holdings Limited in two separate tranches. The sale of 50% stake in Trustee-Manager and first tranche of DASIN’s units (2.5% stake) is expected to complete by May21
DASIN currently trades at 7.0% FY21E yield and 0.51x P/B.

Comments: 1Q21 Revenue forms 23.6% of our full-year FY21E revenue (based on avg. 1Q21 RMB/SGD of 4.8727). We are encouraged by Dasin E-Colour’s strong revenue recovery (to near pre-Covid level) despite a challenging occupancy profile of 86.5% (vs. portfolio average of 96.1% and 1Q20’s 91.9%), thus translating to a robust passing rent at ~RMB125.6psm pm with +107% YoY reversions. Meanwhile, its 2 mature assets, namely Shiqi Metro Mall and Xiaolan Metro Mall (contributed to ~45.6% of 1Q21 revenue), appear to be on track for a sustained recovery – upticks in both occupancy rates and passing rents. The two newly acquired Shunde Metro Mall and Tanbei Metro Mall should provide inorganic boost to with its full-year contributions (vs. 6 mths contributions in FY20). Notwithstanding a challenging leasing market (portfolio occupancy remains below pre-Covid level of 97-98%), DASIN’s lease structure with high fixed components (fixed rent and fixed rent with built-in escalation) at 82.8%% of Mar21 GRI, offer income stability somewhat. We have a BUY rating with TP of S$0.81/Unit for DASIN.




ASEAN Builder's Scoop (18May21) - DASIN strategic investment from ARA

<p><em><strong>Non- SGX Report: These equity research reports are not written by the SGX</strong></em>.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</p>
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<h2>Roxy-Pacific Holdings Limited</h2>
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<h3>A diversified property owner and developer</h3>
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<p>Roxy-Pacific is involved in development of residential and commercial projects, management of hotels and property investments in Asia Pacific. It has a niche in developing small-to- mid-sized residential projects targeted at middle-to-upper income segments. Hotel ownership and property investment add to recurrent income. Roxy-Pacific manages 1 hotel in Singapore, 2 in Japan, 1 resort in Maldives and an upcoming resort in Phuket, Thailand. It generates rental income from equity stakes in mainly office assets spanning across Singapore, Australia, New Zealand and Japan.</p>
<p><strong>FY2020 results hurt by impairments and lower development profits booked.</strong> Revenue fell 55.3% yoy to $198.4m, due mainly to lower development profits in Singapore with the delay in construction progress, and absence of development profits from Australian projects that were completed in FY2019. Net loss was largely a result of one-off S$34.6m impairment charge to reflect lower value of the Noku Maldives and Noku Osaka hotels (S$7m), additional tax expense on a previous divestment of a Hong Kong property (S$10.1m) and impairment charged on land due to a different valuation basis used (S$8.9m). This was slightly offset by a S$10.5m gain on divestment of a Japan asset and $5.9m from government grant.</p>
<p>As at 7 Feb 2021, it has total attributable pre-sale revenue of $552.1m, to be recognised from FY2021 to FY2023. When the hotels’ values are marked to market as at end 2020, the Group’s adjusted NAV is S$0.72/share.</p>
<p><strong>Prices of private residential properties may hold up.</strong> The strong demand for private residential property in 2020 is expected to sustain into 2021, underpinned by low mortgage rates. In addition, the number of unsold residential units under development in Singapore fell in Q4 2020 to around 24,300 from 30,500 in Q4 2019. Low interest rates, low inventory and delay in construction will likely hold up property prices.</p>
<p>We like Roxy-Pacific as a turnaround of results is expected in FY2021, due to profit recognition of projects. Adjusted NAV of $0.72/share is also higher than the current share price. We believe that the possible travel bubbles could also lift hotel management revenue. In addition, we also like them for their established management and track record since listing in 2008.</p>
<p><strong>Key risks</strong>: Probable property cooling measures, rising construction costs</p>
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Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.




Roxy-Pacific Holdings Limited




A diversified property owner and developer




Roxy-Pacific is involved in development of residential and commercial projects, management of hotels and property investments in Asia Pacific. It has a niche in developing small-to- mid-sized residential projects targeted at middle-to-upper income segments. Hotel ownership and property investment add to recurrent income. Roxy-Pacific manages 1 hotel in Singapore, 2 in Japan, 1 resort in Maldives and an upcoming resort in Phuket, Thailand. It generates rental income from equity stakes in mainly office assets spanning across Singapore, Australia, New Zealand and Japan.
FY2020 results hurt by impairments and lower development profits booked. Revenue fell 55.3% yoy to $198.4m, due mainly to lower development profits in Singapore with the delay in construction progress, and absence of development profits from Australian projects that were completed in FY2019. Net loss was largely a result of one-off S$34.6m impairment charge to reflect lower value of the Noku Maldives and Noku Osaka hotels (S$7m), additional tax expense on a previous divestment of a Hong Kong property (S$10.1m) and impairment charged on land due to a different valuation basis used (S$8.9m). This was slightly offset by a S$10.5m gain on divestment of a Japan asset and $5.9m from government grant.
As at 7 Feb 2021, it has total attributable pre-sale revenue of $552.1m, to be recognised from FY2021 to FY2023. When the hotels’ values are marked to market as at end 2020, the Group’s adjusted NAV is S$0.72/share.
Prices of private residential properties may hold up. The strong demand for private residential property in 2020 is expected to sustain into 2021, underpinned by low mortgage rates. In addition, the number of unsold residential units under development in Singapore fell in Q4 2020 to around 24,300 from 30,500 in Q4 2019. Low interest rates, low inventory and delay in construction will likely hold up property prices.
We like Roxy-Pacific as a turnaround of results is expected in FY2021, due to profit recognition of projects. Adjusted NAV of $0.72/share is also higher than the current share price. We believe that the possible travel bubbles could also lift hotel management revenue. In addition, we also like them for their established management and track record since listing in 2008.
Key risks: Probable property cooling measures, rising construction costs













(Non-SGX Report) Roxy-Pacific Holdings Limited: A Diversified Property Owner and Developer

Singapore

Roxy-Pacific Holdings Limited, through its subsidiaries, develops and sells residential properties. The Company also owns and invests in hotels.

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Roxy Pacific Holdings (ROXY SP)

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Singapore Exchange Ltd (SGX)

ASEAN Builder's Scoop (18May21) - DASIN strategic investment from ARA

DASIN strategic investment from ARA; ECWREIT privatization on the cards?; Apr21 new home sales robust 122% take-up rate; Hmlet down round...

SCCM Asia Research

(Non-SGX Report) Roxy-Pacific Holdings Limited: A Diversified Property Owner and Developer

Non- SGX Report: These equity research reports are not written by the SGX. SGX supports the distribution of the research reports by external...

Singapore Exchange Ltd (SGX)

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