The Trading Floor - 2019

Discussion in 'The Trading Floor' started by Amator, Jan 1, 2019.


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  1. nottibird

    nottibird Moderator

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  2. nottibird

    nottibird Moderator

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    nottibird Moderator

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  4. plutus2

    plutus2 Well-Known Member

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    Good the morning Snipers... thank you for the news and report.
     
  5. nottibird

    nottibird Moderator

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  6. Amator

    Amator Well-Known Member

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    SINGAPORE (Sept 11): Despite investors’ concerns over the impact of geopolitical events such as the US-China trade war and protests in Hong Kong, Mapletree’s suite of four real estate investment trusts seem well placed to turn the uncertainties to their advantage instead.

    Market watchers believe all four Mapletree REITs – Mapletree Logistics Trust (MLT), Mapletree Industrial Trust (MINT), Mapletree Commercial Trust (MCT) and Mapletree North Asia Commercial Trust (MNACT) – remain well positioned in the near term.

    According to DBS Group Research, the Mapletree REITs could deliver DPU growth of 2-3% in FY19-21F, on the back of properties in more resilient asset classes as well as acquisition prospects.

    “Mapletree REITs are positioned in sectors that can ride market uncertainties well,” says lead analyst Derek Tan in a Wednesday report.

    In particular, MLT is seen as a potential “beneficiary” of the trade war.

    The logistics trust derives close to 78% of its income from Asia’s developed markets, including Singapore, Hong Kong, Japan and Australia. As such, there has not been any noticeable slowdown in demand amid the trade war threats.

    “We remain excited on MLT’s ability to ride the robust outlook for logistics properties in China and Asean,” Tan says.

    At the same time, MNACT, has not seen any disruption at this point at the Festival Walk mall in Hong Kong amid protests that have raged on for more than three months in the city. Festival Walk contributes close to 60% of MNACT’s revenues.

    With the conflict escalating quickly, some impact on shopper traffic can be expected in the near term. But analysts say Festival Walk’s regular marketing events and position as a “family-themed mall” will dampen the impact on tourism volatility.

    “Unlike its peers with malls that cater largely to tourists, [MNACT’s] positioning is more towards mid-level brands coupled with a more local-focused shopper profile, which underpins its more resilient outlook,” Tan says, adding that worries over its performance due to the Hong Kong protests are “misplaced”.

    Meanwhile, MCT has a powerful trump card in VivoCity, which contributes almost half of its portfolio revenues. Already a choice location for both retailers and shoppers, the asset enhancement initiative (AEI) which saw a new library and a change in tenant from Giant to NTUC Fairprice is expected to draw even higher traffic.

    MCT saw a “meteoric” 11% rise in share price in the past month, ahead of its recently announced inclusion into the Straits Times Index (STI). And Tan believes there is still upside from the current level.

    Potential catalysts include an accretive purchase of Mapletree Business City Phase 2, as well as better-than-projected reversions and tenant sales at VivoCity post operations from a new anchor tenant.

    The portfolios of the Mapletree REITs are also a promising factor, especially with recent portfolio reconstitution efforts.

    For MINT, the planned redevelopment of Kolam Ayer cluster 2 will allow the manager to tap on the site’s un-utilised plot ratio, which will be a key driver to earnings and net asset value (NAV) uplifts.

    The near term earnings downside as the property undergoes redevelopment will be compensated by the completion of the recent development at 7 Tai Seng.

    Likewise, MCT’s office and business park portfolios remain stable, with occupancy rates heading towards 100% on the back of higher pre-commitment levels.

    In addition, Mapletree Business City Phase 2 looks to be a positive accretion to the REIT with key tenants like Google, and comes with an attractive pipeline of potential assets that could be injected into the REIT.

    MNACT’s Gateway Plaza in Beijing and Sandhill Plaza in Shanghai are also expected to deliver stable returns. Furthermore, the recent acquisition of a portfolio of commercial properties in Japan are likely to be value accretive, boosting income stability through lengthening the portfolio weighted average lease expiry (WALE) and diversifying its earning base.

    And Tan believes MNACT is likely to grow its portfolio in key markets in the near future.

    “MNACT has the first right of refusal (ROFR) over several properties from its sponsor, the Mapletree Group in Asia. The manager is looking at potential acquisition opportunities in cities like Beijing, Shanghai, Guangzhou, and Chongqing, which offer a long term growth runway,” he says.

    DBS remains bullish on each of the four Mapletree REITs, and is maintaining its “buy” calls on all four.

    The brokerage has target prices of $2.40, $2.50, $1.85 and $1.65 for MCT, MINT, MLT and MNACT, respectively.
     
  7. Amator

    Amator Well-Known Member

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    Hong Kong Exchanges and Clearing made an unexpected bid for London Stock Exchange Group, which could potentially throw the European exchange’s own transformative deal into jeopardy.

    The transaction values one of Europe’s largest exchanges at 29.6 billion pounds ($50.4 billion), according to a HKEX a statement Wednesday. The Asian bourse operator had considered the ‘ambitious and far-reaching’ deal for many months, HKEX Chief Executive Officer Charles Li said. The LSE, which agreed to snap up data provider Refinitiv in a US$27 billion ($37.3 billion) blockbuster agreement just weeks ago, declined to comment.

    Both firms have been involved in exchange merger deals in recent years, with LSE failing in its attempt to combine with Deutsche Boerse AG and HKEX acquiring London Metal Exchange in 2012 for 1.4 billion pounds.

    “These are two major security exchanges in the world,” said Ronald Wan, chief executive at Partners Capital International in Hong Kong. “A takeover from Hong Kong, a special administrative region of China, could be seen as a takeover from China. It won’t be easy to clear all the regulatory hurdles -- the deal is super politically sensitive.”

    UK Business Secretary Andrea Leadsom, speaking on Bloomberg Television as news of the deal broke, said the British government would scrutinize any tie-up between the exchanges. Leadsom said the UK authorities would “look very carefully at anything that had security implications for the UK.”
     
  8. Amator

    Amator Well-Known Member

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    SINGAPORE (Sept 10): ST Engineering and Germany's Rheinmetall will collaboratively pursue business opportunities for development and sales of defence products, systems and solutions.

    In a filing on Tuesday night, ST Engineering says its Land Systems unit and Rheinmetall have signed a Memorandum of Understanding (MOU) to jointly explore areas of cooperation involving complementary capabilities in design, development, production, global marketing, sales and support of defence systems and solutions related to protection systems and combat vehicles.

    Under the area of combat vehicle, the partnership will explore opportunities in the armoured tracked vehicle market, which includes marketing, development, manufacturing, assembly; and Integrated Logistic Support activities such as training and aftersales.

    Dr Lee Shiang Long President, Land Systems arm of ST Engineering, says, “This partnership speaks volumes of industry collaborations that leverage the strengths of both partners to bring about new opportunities in the development of products and expansion of market reach.”

    Rheinmetall is the manufacturer of the Leopard 2 main battle tank, which is considered one of the best tanks in the world and deployed by many nations, including the Singapore Armed Forces. The tank is armed with Rheinmetall's 120mm smoothbore gun. Rheinmetall also makes a range of ammunition for the Leopard 2 as well as supply the tank's fire control technology and C4I (Command, Control, Communications, Computers, and Intelligence) systems.
     
  9. nottibird

    nottibird Moderator

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  10. nottibird

    nottibird Moderator

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  11. Amator

    Amator Well-Known Member

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    SINGAPORE (Sept 9): Mapletree Commercial Trust (MCT) has earned a spot on the benchmark Straits Times Index (STI), on the back of robust growth numbers as well as steady increase in revenue and shareholder returns.

    For 1Q19/20 ended June, the REIT reported a 3.6% rise in DPU to 2.31 cents, compared to 2.23 cents in 1Q18/19. Income available for distribution rose 4.1% to $67.2 million, from $64.6 million last year.

    As of July this year, MCT was one of the best-performing S-REITs, with total returns of 28.6% in the year to date. Currently, it has a market capitalisation of $6.5 billion.

    MCT will be included in the STI from Sept 23. It will be replacing Hutchison Port Holdings Trust (HPHT), which was dropped from the index after an 84% decline in market value since its 2011 initial public offering.

    MCT will now be among Singapore’s top 30 listed companies, marking what analysts say is a “new dawn” for the REIT.

    Its winning proposition is VivoCity, Singapore’s largest retail mall, which stands to benefit from the Greater Southern Waterfront (GSW) rejuvenation project.

    The GSW project stretches from the Gardens by the Bay East area to Pasir Panjang, covering over 30km of Singapore’s Southern coastline and offering over 2,000 hectares of land for potential redevelopment.

    It is touted as the new way to “live, work and play”, with up to 9,000 new residential development homes planned at the Keppel Club site.

    There will also be development to the surrounding Pulau Brani and Pasir Panjang area, as well as big tech companies like Microsoft and Google taking up as tenants at MCT’s Mapletree Business City 2 project.

    Meanwhile, VivoCity saw revenue increase by $2.6 million from 1Q18/19, driven mainly by higher rental income from new and renewed leases, achieved together with the asset enhancement initiatives completed in FY18/19 and the effects of the step-up rents in existing leases.

    It also reported a 5.2% and 4.2% growth in gross revenue and NPI for 1Q19/20 in spite of the transitory downtime on shopper traffic and tenant sales resulting from the changeover of anchor space.

    DBS Group Research analysts Derek Tan and Rachel Tan note that this will inevitably be positive for MCT, which has office properties in the Alexandra precinct (Mapletree Business City Phase 1 and PSA Building) and Harbourfront (Merrill Lynch HabourFront building).

    “Over time, there are benefits from a wider pool of office occupiers looking to relocate there while the increased live-in population within the GCW will fuel the attractiveness of properties to occupiers,” they say in a Monday report.

    DBS is keeping its “buy” call on MCT, and raising its target price to $2.40 from $2.25 previously.

    The analysts say this reflects MCT’s ability to deliver consistent DPU growth of 3% CAGR over FY20-22F, and its scarcity premium of being one of only two 100% Singapore-focused large-cap REITs.

    The brokerage expects MCT to maintain a weightage of 1.5% in the STI, in line with market expectations as seen by the close to 13% share price appreciation since the beginning of August 2019.

    “While some investors might take some profit post the news, we believe MCT’s share price will remain elevated in anticipation of the potential injection of Mapletree Business City Phase 2. While the timing is still uncertain, we believe Mapletree Business City Phase 2, anchored by key tenants like Google, will be widely seen as a positive addition to the REIT,” they add.
     
  12. nottibird

    nottibird Moderator

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  13. Amator

    Amator Well-Known Member

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    FTSE Russell announces that there will be one change to the constituents of the Straits Times Index (STI), following the September quarterly review. Mapletree Commercial Trust will be added to the index and, as a result, Hutchison Port Holdings Trust will be excluded.

    The STI reserve list, comprising the five highest ranking non-constituents of the STI by market capitalisation, will be (in order of size) Mapletree Logistics Trust, Suntec REIT, Mapletree Industrial Trust, Keppel REIT and Mapletree North Asia Commercial Trust. Stocks on the reserve list will replace any constituents that become ineligible as a result of corporate actions, before the next review.


    effective date 23 Sep 2019
     
  14. nottibird

    nottibird Moderator

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  15. nottibird

    nottibird Moderator

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  16. nottibird

    nottibird Moderator

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  17. nottibird

    nottibird Moderator

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    Wall Street was closed on Monday, 2 Sep 2019 for Labour Day.
    upload_2019-9-3_8-25-45.png
     
  18. Amator

    Amator Well-Known Member

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    SINGAPORE (Sept 2): Sembcorp Marine has won a slew of new projects valued at $400 million ranging from engineering solutions for offshore gas and wind farm developments as well as cruise ship upgrades.

    In these contracts, SembMarine teamed up with various repeat and new customers. The group also succeeded in breaking into the highly competitive offshore wind sector in Taiwan.

    Sembcorp Marine Rigs & Floaters and joint venture companies of Shapoorji Pallonji Oil and Gas and Bumi Armada agreed to convert Ariake, a very large crude carrier (VLCC), into a floating production, storage and offloading (FPSO) unit for deployment in the east coast of India. The vessel will produce up to 90,000 barrels of oil per day (BOPD) and have a 1.3-million-barrel storage facility.

    Sembcorp Marine Repairs & Upgrades also added three new gas projects to its portfolio. These were the conversion of LNG tanker Dwiputra into a 125,000cbm floating storage and regasification unit (FSRU) for a JV between Mitsui O.S.K. Lines (MOL) and Karpower International B.V.; Conversion of NYK Line’s former gas carrier LNG Flora into a 127,000cbm floating storage unit (FSU) for Gasfin Development S.A.; and upgrading works on the 173,400cbm FSRU BW Magna for BW LNG.

    Sembcorp Marine Repairs & Upgrades will also lead the makeover of Asuka II – Japan’s largest cruise ship – for NYK Cruises. To be executed over 45 days at the Admiralty Yard from January 2020, the project includes installing a sulphur oxide scrubber unit on the vessel to comply with new environmental regulations effective next year.

    Sembcorp Marine Offshore Platforms also landed a contract with Jan De Nul n.v. to fabricate 15 jacket foundations for the Formosa 2 Offshore Wind Farm. Located 4km offshore Miaoli County in the Taiwan Strait, the 376MW Formosa 2 facility will be Taiwan’s largest offshore wind farm, generating sufficient electricity for over 380,000 households when it starts operation in late 2021.

    SembMarine president & CEO Wong Weng Sun says: “Despite the challenging market conditions, we have been steadfastly pursuing the available pockets of opportunities. I am very pleased that our teams have translated several of these opportunities into new contracts. As we respond to current market enquiries and customer requirements, Sembcorp Marine will continue to innovate and improve our capabilities, so that we can sustain our long-term competitiveness by having the best solutions for the evolving global offshore, marine and energy industries.”

    The contracts are not expected to have any material impact on the net tangible assets and earnings per share of SembMarine for the year ending Dec 31.
     
  19. sotong11

    sotong11 Well-Known Member

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    morning snipers...
     
  20. nottibird

    nottibird Moderator

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