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><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/233/730/original/image_54312508231633489341255.png?1633489342" class="editor-image img-responsive" data-smartkarma-image-id="233730"></figure><h3><a href="https://www.smartkarma.com/entities/sph-reit" target="_blank" data-smartkarma-citation="entities:5994" rel="noopener">SPH REIT (SPHREIT SP)</a> FY21 DPU +98.5% YoY; Rental reversions still weak, cap rate flat</h3><ul><li>2H21 revenue and NPI rose by 27% and 24.6% to S$137.2m and S$97.8m, respectively. FY21 revenue and NPI increased by 14.8% and 11.4% YoY to S$277.2m (107% of BB est) and S$202.7m (122% of BB est), respectively. The increase was mainly due to overall market recovery, lower rental assistance, and the full year contribution from Westfield Marion Shopping Centre</li></ul>

SingaporeSPH REIT (SPHREIT SP) FY21 DPU +98.5% YoY; Rental reversions still weak, cap rate flat2H21 revenue and NPI rose by 27% and 24.6% to S$137.2m and S$97.8m, respectively. FY21 revenue and NPI increased by 14.8% and 11.4% YoY to S$277.2m (107% of BB est) and S$202.7m (122% of BB est), respectively. The increase was mainly due to overall market recovery, lower rental assistance, and the full year contribution from Westfield Marion Shopping Centre

<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: 141.25pt;">
 
</td>
<td style="width: 141.2pt;">
SPHREIT
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
Period
</td>
<td style="width: 141.2pt;">
3Q21
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
Gross Revenue (S$ m)
</td>
<td style="width: 141.2pt;">
69.6 (+82.8% YoY)
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
NPI (S$ m)
</td>
<td style="width: 141.2pt;">
Not Disclosed
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
DPU (S$ c)
</td>
<td style="width: 141.2pt;">
1.38 (+176.0% YoY)
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
NAV per Unit (S$)
</td>
<td style="width: 141.2pt;">
Not Disclosed
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
P/B (x)
</td>
<td style="width: 141.2pt;">
1.02 (Based on 2Q21 NAV)
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
Occupancy (%)
</td>
<td style="width: 141.2pt;">
98.4
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
Reversion (%)
</td>
<td style="width: 141.2pt;">
Not Disclosed
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
Gearing (%)
</td>
<td style="width: 141.2pt;">
Not Disclosed
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
Cost of Debt (%)
</td>
<td style="width: 141.2pt;">
1.86
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
1 Yr Fwd Yield (%)
</td>
<td style="width: 141.2pt;">
5.62
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
Debt Hedged (%)
</td>
<td style="width: 141.2pt;">
58
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
Target Price
</td>
<td style="width: 141.2pt;">
NA
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
Rating
</td>
<td style="width: 141.2pt;">
NA
</td>
</tr>
</tbody>
</table>

Singapore
SREITs results in a glance (see detailed spreadsheet and calendar attached)




 


SPHREIT




Period


3Q21




Gross Revenue (S$ m)


69.6 (+82.8% YoY)




NPI (S$ m)


Not Disclosed




DPU (S$ c)


1.38 (+176.0% YoY)




NAV per Unit (S$)


Not Disclosed




P/B (x)


1.02 (Based on 2Q21 NAV)




Occupancy (%)


98.4




Reversion (%)


Not Disclosed




Gearing (%)


Not Disclosed




Cost of Debt (%)


1.86




1 Yr Fwd Yield (%)


5.62




Debt Hedged (%)


58




Target Price


NA




Rating


NA





ASEAN Builder's Scoop (13Jul21) - SPHREIT No Mention of Rebates

Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Equity Bottom-Up

<ul><li>The SET Index is expected to continue rising today, with the support at 1,250/1,231 points and the resistance at 1,260/1,274 points.</li><li>External factors are on a positive tone after the Fed Chair signaled the possibility of a rate cut last Friday, supporting a decline in US bond yields and an uptick in US equities.</li><li>On the domestic front, the outlook is slightly positive as Thailand's exports in July remain on track for strong growth, easing concerns about the impact of US tariffs on the economy and Thai stock market.</li></ul>

The SET Index is expected to continue rising today, with the support at 1,250/1,231 points and the resistance at 1,260/1,274 points.External factors are on a positive tone after the Fed Chair signaled the possibility of a rate cut last Friday, supporting a decline in US bond yields and an uptick in US equities.On the domestic front, the outlook is slightly positive as Thailand's exports in July remain on track for strong growth, easing concerns about the impact of US tariffs on the economy and Thai stock market.

Fed Chair Signals Rate Cuts; Thai Exports to Continue Expanding, Supporting Further Gains in the Market

<ul><li>The SET Index today is expected to trade with volatility, with the resistance at 1,254/1,260 points and the support at 1,240 points (200-day EMA)/1,231 points.</li><li>External factors are viewed as neutral, as the US and Europe have shown a more relaxed stance on trade regulations, though markets remain concerned about the Fed's potential rate cuts (focus on Fed Chair Powell's speech tonight at the Jackson Hole meeting).</li><li>Domestic factors are also neutral, with attention on the political issue as the Criminal Court is set to deliver a verdict in the case of former Prime Minister Thaksin today.</li></ul>

The SET Index today is expected to trade with volatility, with the resistance at 1,254/1,260 points and the support at 1,240 points (200-day EMA)/1,231 points.External factors are viewed as neutral, as the US and Europe have shown a more relaxed stance on trade regulations, though markets remain concerned about the Fed's potential rate cuts (focus on Fed Chair Powell's speech tonight at the Jackson Hole meeting).Domestic factors are also neutral, with attention on the political issue as the Criminal Court is set to deliver a verdict in the case of former Prime Minister Thaksin today.

<ul><li>The SET Index is expected to be volatile today, with the support at 1,231/1,221 points and the resistance at 1,245/1,251 points 50-week EMA), pressured by sell-on-fact sentiment following the announcement of Thailand's new US reciprocal tariff rate at 19%, which was in line with market expectations and had already been priced in.</li><li>However, we recommend accumulating on weakness, as the downside for the SET Index appears limited due to a declining risk premium outlook, which supports upward revisions to this year's export and economic forecasts – benefiting listed companies' earnings, particularly in the export sector.</li><li>Overall, we view this as slightly negative for the market in the short term, as Thailand's tariff rate is now on par with peers and the recent share price rally has already priced in some optimism.</li></ul>

The SET Index is expected to be volatile today, with the support at 1,231/1,221 points and the resistance at 1,245/1,251 points 50-week EMA), pressured by sell-on-fact sentiment following the announcement of Thailand's new US reciprocal tariff rate at 19%, which was in line with market expectations and had already been priced in.However, we recommend accumulating on weakness, as the downside for the SET Index appears limited due to a declining risk premium outlook, which supports upward revisions to this year's export and economic forecasts – benefiting listed companies' earnings, particularly in the export sector.Overall, we view this as slightly negative for the market in the short term, as Thailand's tariff rate is now on par with peers and the recent share price rally has already priced in some optimism.

Market May Experience Short-Term Volatility, But There Is Potential for a Continued Upward Trend in the Near Term

Philippines

Sta. Lucia Land, Inc. is a leading real estate developer in the Philippines, specializing in residential communities, including subdivision lots, townhouses, condominiums, and condotels. The company also develops and leases commercial properties such as malls and business centers. It was incorporated in 1966 and is headquartered in Cainta, Rizal, Philippines.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Sta. Lucia Land (SLI PM)

ASEAN Builder's Scoop (5Oct21)

SPHREIT rental reversions still weak, cap rate flat; SLI ventures into leisure farms residential concept; Phils Sep21 inflation call at 5.2%; IOIPG...

SCCM Asia Research

ASEAN Builder's Scoop (13Jul21) - SPHREIT No Mention of Rebates

SPHREIT no mention of rebates; CAPL opens RC the Bund Shanghai; LMRT extends mall closure in Medan; SLI plans for 3bn shares follow-on offer; 2Q21...

SCCM Asia Research

Fed Chair Signals Rate Cuts; Thai Exports to Continue Expanding, Supporting Further Gains in the Market

The SET Index is expected to continue rising today, with the support at 1,250/1,231 points and the resistance at 1,260/1,274 points. External...

Krungthai XSpring

Today's Dominant Ideas

The SET Index today is expected to trade with volatility, with the resistance at 1,254/1,260 points and the support at 1,240 points (200-day...

Krungthai XSpring

Market May Experience Short-Term Volatility, But There Is Potential for a Continued Upward Trend in the Near Term

The SET Index is expected to be volatile today, with the support at 1,231/1,221 points and the resistance at 1,245/1,251 points 50-week EMA),...

Krungthai XSpring

Price Gauge

52-week Range

Market Cap (USDm)

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