Growth Delivered Singapore REIT In last Earning

The earnings season is on the trading door. Singapore REITs have always been one of the favorite investment choices for investors due to their stable earnings qualities.

Here Multi Management Future Solutions presenting the outlook of two REITs that have lived up to their investors’ expectation by delivering positive performances in their latest earnings updates.

The first REIT on the list is Ascott Residence Trust (SGX: A68U). Ascott Reit was established with the objective of investing primarily in real estate and real estate-related assets which are income-producing and which are used or predominantly used, as serviced residences, rental housing properties, and other hospitality assets. Ascott Reit’s asset size has grown to S$5.3 billion since it was listed on the Singapore Exchange Securities Trading Limited (SGX-ST) in March 2006. Its sponsor is Singapore undervalued stock and property giant, CapitaLand Limited.     

As the Q3 ended on 30 September 2018, Ascott reported that revenue grew 6% YOY  to S$134.5 million while gross profit improved by 9% to S$64.2 million. Its DPU was up 8% to 1.82 cents as compared to a year ago. Revenue improved as a result of accession, as well as stronger contribution from existing properties.

As of 30 September 2018, the REIT’s gearing stood at 36.4%, which is a safe distance from the regulatory ceiling of 45%. 

The next REIT on the list is Mapletree Logistics Trust (SGX: M44U). Mapletree Logistics Trust is an Asia-focused logistics real estate investment trust. The Trust invests in a diversified portfolio of income-producing logistics real estate in Singapore, Japan, Hong Kong, South Korea, China, Australia, Malaysia, and Vietnam.

In the latest quarter ended 30 September 2018, MLT reported that gross revenue grew 13.8% YOY to S$106.6 million while net property income improved by 14.6% during the period to S$90.2 million. Also, DPU was up by 3.8% year-on-year to 1.958 cents. The growth in DPU was achieved despite an increase in units from 2.5 billion last year to 3.2 billion this year. The stronger performance was mainly driven by growth from the existing portfolio, as well as contributions from two acquisitions in Hong Kong.

DBS Q3 Profit Sink Below Estimate, Loan Outlook Dims

The Q3 profit of Southeast Asia’s biggest lender, DBS Group Holdings Ltd. reported slightly below estimates on Monday (Nov 5), identifying the trade war worries and property cooling measures likely to hold back its loan book growth next year.

Concerns about the impact of an intensifying tariff dispute between China and the United States on Singapore's export-reliant economy, and curbs on the city-state's property market, have spatter the outlook for banks after they reported record profits last year.

DBS Group Holdings Limited is leading Singapore blue-chip stocks in Banking segment, its subsidiaries provide a variety of financial services. The Company offers services including mortgage financing, lease and hire purchase financing, nominee and trustee, funds management, corporate advisory and brokerage .

This Singapore undervalued stock also acts as the primary dealer in Singapore government securities. The net profit of DBS came in at S$1.41 billion (US$1 billion) in the three months ended September versus S$822 million a year earlier, and an average estimate of S$1.47 billion.

DBS biggest single-day percentage fall in nearly three months. The shares fell 2.6 % in afternoon trade. Singapore state investor Temasek Holdings own 29% share of DBS, posted results after Oversea-Chinese Banking Corp announced a record quarterly profit and United Overseas Bank reported profit rose 17 per cent.

DBS's net interest margin, a key gauge of profitability, rose 13 basis points from a year ago to 1.86 per cent. Total income jumped 10 per cent to a record S$3.38 billion, DBS said, while net interest income rose 15 per cent.

Singtel's share price get a boost from associate's climbing contributions

SingTel Singapore Pte. Ltd. provides investment holding and business and management consultancy services. The company was incorporated in 2010 and is based in Singapore. SingTel Singapore Pte. Ltd. operates as a subsidiary of Singapore Telecommunications Ltd. 

The company is one of the largest telecommunication company in Singapore undervalued stock segment.

According to DBS Group Equity Research report, Singtel’s rising associate’s contributions are likely to drive its share price with a fixed dividend commitment of $0.175 over FY19-20F and 5.5% yield.

The associates’ profit contribution is likely to bottom out in Q1 for 2019. DBS analyst said, associates’ profit contribution is expected to grow after a two-year decline which will be led by Indonesian network provider Telkomsel, Thai mobile operator AIS and Philippine telco Globe amidst delays in India-based Bharti Telecom’s recovery.

Contributions from Telkomsel are likely to slide between Q4 and Q1 in 2019 as the Indonesian telco grapples with the loss of subscribers and industry competition in the first half of 2018.

Oversea-Chinese Banking Corp (OCBC) Cancelled Hong Kong Life Insurance Sale.

Singapore, The Singapore blue chip stock Oversea Chinese Banking Corp states on Monday that a pre decided sale of Hong Hong Kong Life Insurance to investment firm First Origin had been called off after the buyer failed to meet certain conditions before a Sept. 30 deadline.
Oversea-Chinese Banking Corporation Limited is an Singapore undervalued stock offers all-inclusive range of financial services. OCBC subsidiary from OWHB in Hong Kong, owns a third last remaining independent life insurance businesses in Hong Kong. OWHB is one of five owners including Chong Hing Insurance Co Ltd, a unit of Chong Hing Bank Ltd.

The starting business from last year agreed to acquire HK$7.1 billion ($907 million), according to two of the sellers.

The OWHB terminated the sale with other seller on the basis that the closing conditions have not been satisfied," OCBC said in a statement. It did not specify which conditions were not met.

First Origin International Limited forfeited a deposit of HK$710 million ($90.7 million) to the sellers, OCBC said.Reuters was not able to contact First Origin for comment on Monday, a public holiday in Hong Kong.

The deal had been awaiting approval from the Hong Kong regulator.

Mapletree Industrial Trust sets up S$2b Euro Medium Term Securities Programme. Now what Things to consider to buy MAPLETREE

MAPLETREE Industrial Trust (MIT) established  S$2,000,000,000 Euro Medium Term Securities Programme , with DBS Bank and Oversea-Chinese Banking Corporation Limited as joint arrangers and dealers of programme. The programme was announced on 5 Sep 2018 by the manager of Mapletree Industrial Trust Management Ltd..

Under the programme, issuers Mapletree Industrial Trust Treasury Company and DBS Trustee may issue notes or perpetual securities denominated in any currency as agreed between the dealer of the particular series or tranche of securities.

Mapletree Industrial Trust (SGX: ME8U) recently released its first quarter earnings update for its financial year ending 31 March 2019 (FY18/19). MIT portfolio consists of 86 industrial properties in Singapore and 14 data centers in the US and categorized under mid-cap stocks Singapore.

Here Multi Management Future Solutions team of analyst researched market stats of Mapletree Industrial Trust Lim. as per the traders interest to buy the stock in this year.

MIT is a Singapore focused Undervalued REIT with a large and diversified portfolio of income-producing industrial assets with a large and diversified portfolio of industrial properties.  It debuted on the Main Board of the SGX-ST on 21 October 2010. The Trust invests in a diverse portfolio of industrial properties with the primary objective of achieving an attractive level of return from rental income and for long-term capital growth.

Things investors should know to buy Mapletree REIT in 2018-

1.Gross revenue for the reporting quarter grew 3.0% year-on-year to S$91.5 million while net property income improved by 1.9% to S$69.5 million.

2. MIT has achieved a CAGR of 10.2% in valuation of its portfolio over the past seven years, from 70 properties worth a combined S$2.2 billion in 2011 to 99 properties worth S$4.2 billion in 2018.

3.The REIT’s distribution per unit (DPU) was up by 2.7% year-on-year to 3.00 cents. It’s gearing ratio stood at 35.0%, which is a safe distance from the regulatory ceiling of 45% from 30 june 2018.

4. Mapletree Industrial Trust annualized DPU of 12.0 cents and its closing unit price of S$2.02 as of 24 July 2018, the REIT has an annualized distribution yield of 5.9%.

5. MIT had over 2,000 tenants from 30 June 2018. Its top 10 tenants currently form just 25.9 % of its overall gross rental income.

6. Mapletree Industrial Trust acquired 7 Tai Seng Drive for S$68 million on 27 June 2018 and it also completed the development of a build-to-suit (BTS) project, Mapletree Sunview, on 13 July 2018 for S$76 million.

7. The weighted average lease to expiry by gross rental income for MIT portfolio was 3.7 years as of 30 June 2018. 33.7% of the REIT’s leases will expire by FY19/20, 36.6% will expire in the following two years (FY20/21 and FY21/22), while the remaining leases will expire after FY22/23.

8. Mapletree Investments is the sponsor and the largest shareholder of MIT with a 32.8% shareholding presently.

Hongkong Land Limited: What investors should know about this undervalued stock?

Hongkong Land Limited (SGX: H78) incorporated in 1889, is a leading property investment, management, and development group. The company invests in and develops commercial properties. Through its subsidiaries, the Company also develops commercial and residential buildings as well as infrastructure in Asia region. Let's take a look on its gross margin, price-to-book ratio, return on assets, volatility, price index and value composition of this undervalued stocks singapore -

Hongkong Land Limited: What investors should know about this undervalued stock?

Gross Margin Score

The shares of Hongkong Land Holdings Limited currently have a gross margin score of 18. This score is gotten from the Gross Margin (Marx) dependability and development over the past eight years. The Gross Margin score arrives on a scale from 1 to 100 where a score of 1 would be viewed as positive, and a score of 100 would be viewed as negative. The low score of 18 for Hongkong Land Holdings Limited shows the best score for security and development.

Price to Book ratio

Hongkong Land Holdings Limited owns a Price to Book ratio of 0.44505. Hongkong Land Holdings Limited has a current MF Rank of 9468.  Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high-quality companies that are trading at an attractive price. 

Return on Assets

When all is said in done, organizations with the most reduced consolidated rank might be the higher quality picks. The Return on Assets for Hongkong Land Holdings Limited is 0.090655. The Piotroski F-Score is a scoring framework between 1-9 that decides an association's money related quality. The score decides whether an organization's stock is profitable or not. The Piotroski F-Score of Hongkong Land Holdings Limited is 5. A score of nine shows a high-esteem stock, while a score of one demonstrates a low-esteem stock.


Volatility 

The Volatility 12m of Hongkong Land Holdings Limited is 14.3919. The Volatility 3m of Hongkong Land Holdings Limited is 14.0642. The Volatility 6m is the same, aside from estimated through the span of a half year. The Volatility 6m is 15.8193. The Volatility 3m of Hongkong Land Holdings Limited is 14.0642.


Price Index

The Price Index is a proportion that shows the arrival of a shares cost over a past period. The value record of Hongkong Land Holdings Limited for a month ago was 0.99859. The Price Index 12m for Hongkong Land Holdings Limited is 0.94065.

Value Composite 

Monitoring some valuation rankings, Hongkong Land Holdings Limited has a Value Composite score of 30. Created by James O'Shaughnessy, the VC score utilizes five valuation proportions. These proportions are price-to-earnings, price to cash flow, EBITDA to EV, cost to book value, and price to sales. The VC is shown as a number somewhere in the range of 1 and 100. 

Trading Tips

When all is said in done, an organization with a score more like 0 would be viewed as underestimated, and a score more like 100 would demonstrate an exaggerated organization. Including a 6th proportion, investor yield, we can see the Value Composite 2 score which is right now sitting at 23.


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Initial Public Offering of Synagie Corporation Ltd

Singapore - Synagie Corporation Ltd is an e-commerce company that provides end-to-end commerce enablement solutions to businesses selling online and offline.  The company is looking for a listing on Singapore's Catalist board. The organization is Southeast Asia's driving e-commerce business empowering influence in the body, beauty, and baby (BBB) part. Let's take a look at this stock investment.

Here are the key points that an investor should know -  

As indicated by its IPO plan, Synagie as the share investment is the quickest developing internet business start-up in Singapore and one of the quickest developing in Southeast Asia. It posted income development of an astounding 551.8% every year for the money related period from 28 November 2014 to 31 December 2015 till the monetary year finished 31 December 2017. Synagie has more than 250 brand accomplices in the BBB area including surely understood brands, for example, Johnson and Johnson, Kimberly-Clark and Shiseido. 

Initial Public Offering of Synagie Corporation Ltd

Synagie has a stage based, resource light plan of action with three business sections – e-commerce business, e-logistics, and insurtech – that meet up to offer creative and productive answers for its image accomplices.

The e-commerce business fragment helps the organization's image accomplices to change their conventional business to an online one. The e-coordinations fragment gives its image accomplices on-request warehousing administrations and last mile conveyance administrations. In conclusion, under the insurtech fragment, Synagie gives outsider organization arrangements, for example, maintenance agreement, coincidental harm assurance, after-deals support and call focus administrations to its image accomplices. 

For the IPO, there will be an aggregate of 43 million offers in the offer, which involves a situation tranche of 39.2 million offers and an open tranche of 3.8 million. The IPO is evaluated at S$0.27 per share. 

In view of the IPO cost and post-welcome offer capital of 261.7 million offers, Synagie is relied upon to have a market capitalization of S$70.7 million. 

The posting is set to raise net continues of S$9.8 million. Synagie wants to utilize the cash for business extension (S$7.4 million) and working capital (S$2.4 million). Business extension incorporates entering new land areas, interests in data innovation abilities, and mergers and acquisitions.

Despite the fact that Synagie's income has become massively finished a previous couple of years as observed before, it had posted misfortunes amid a similar period. For the monetary year finished 31 December 2017, it went into a more profound loss of S$3.4 million, rather than S$2.3 million in the earlier year. 

Trading Tips

Synagie has likewise not been producing income from activities for the money related period from 28 November 2014 to 31 December 2015 through to the monetary year finished 31 December 2017. Starting at 31 December 2017, the organization had S$1.8 million in real money and money reciprocals and S$2.9 million in convertible notes.

Stay updated with our SGX equity signal blog for the receiving the latest updates, penny stock recommendation and stock signals. Thank you for reading.