In Singapore REITs: 1QCY18 Results Roundup, Grass Is Also Green on Overseas Pastures & Valuations Still Stretched Given Spike in Bond Yields

1QCY18 DPU fell 

Rising security yields 

Top picks: FLT, FCT and MGCCT 

1QCY18 Results Roundup 

Taking a gander at the as of late finished up 1QCY18 outcomes season, 19 out of the 23 S-REITs under our scope detailed outcomes which lived up to our desires, while four missed. The normal DPU development came in at - 2.6% on a YoY premise. 

Despite this decrease, we trust the operational viewpoint seems more positive, particularly for the workplace sub-area (sgxstocksignals), whereby marking rents have enhanced solidly couple with the vigorous recuperation in advertise rents. 

Looking forward, we are anticipating stable DPU development (showcase top weighted) of 1.9% for the current budgetary year and 1.6% for the following money related year. 

Grass Is Also Green on Overseas Pastures 

One of the key patterns which rose since before the end of last year was the entrance of S-REITs into new land markets. 

Following Mapletree Industrial Trust's and Frasers Commercial Trust's choices to enter the U.S. also, U.K. server farm and business stop ventures in Dec 2017 and Jan 2018, separately, different REITs have as of late stuck to this same pattern in denoting (sgxstockpicks) their lady acquisitions in another topographical market. This incorporates Mapletree Greater China Commercial Trust in Japan, Frasers Logistics and Industrial Trust in Europe (Germany and The Netherlands) and CapitaLand Commercial Trust in Frankfurt, Germany. 

Comparable appealing qualities supporting these moves incorporate freehold arrive, high inhabitance rates with long WALEs and lower cost of subsidizing in neighborhood cash terms. 

Another key division occasion was the assention came to between the REIT administrators of ESR-REIT and Viva Industrial Trust on their proposed merger. Should endorsements from the two arrangements of unitholders be gotten, this could conceivably make the fourth biggest modern REIT in Singapore and set the phase for promote combination in the business later on. 

Valuations Still Stretched Given Spike in Bond Yields 

The S-REITs segment, utilizing the FTSE Straits Times REIT Index (FSTREI) as a benchmark, is down 6.0% YTD (as of the end of 22 May). 

Counting profits, the segment has posted aggregate returns of - 3.4% YTD. We trust this decay has been driven by worries over a rising financing cost condition, as government security yields have likewise observed a spike since the beginning of the year. 

This is in spite of the more positive operational viewpoint in the midst of firmer hidden industry basics. The Singapore government 10-year security yield is at present at 2.67%, a generally noteworthy increment versus the 2.00% level seen as toward the finish of 2017. 

Given that the FSTREI is exchanging at a forward conveyance yield of 6.0%, this infers the yield spread against the Singapore government 10-year security yield is 334 premise focuses (bps). In spite of the offer value amendment YTD, valuations are as yet extended, in our view, as this yield spread speaks to two standard deviations underneath the 5-year normal (410 bps). 

Keep up NEUTRAL on the S-REITs area, with a particular stock picking approach staying key at this point. Our favored picks are Frasers Logistics and Industrial Trust [BUY; FV: S$1.21]; Frasers Centrepoint Trust [BUY; FV: S$2.49]; and Mapletree Greater China Commercial Trust [BUY; FV: S$1.42].

DailySGXSignals

About Viva Industrial Trust on Enhanced money related execution, Obligation capital administration, Portfolio synopsis, The primary concern

Viva Industrial Trust (SGX:T8B) is a stapled security assume that puts principally in business parks and modern land in Singapore. The trust at present has a portfolio comprising of nine properties around the island. 

With an appropriation yield of 8.35% (at the season of composing), the trust likewise has a standout amongst the most alluring yields in the Singapore REIT showcase. Thusly, I figured it may enthusiasm to investigate a portion of the business basics of the trust to see whether it can make a decent speculation. Here is the thing that I discovered from its 2017 outcomes. 

Enhanced money related execution 

2017 was a decent year for the trust. Net income and net property salary expanded 17.4% and 19.5% resepectively. This was because of income commitment from acquisitions, alongside an enhanced execution from its current portfolio. 

The trust, thus, figured out how to build its distributable wage and conveyances per security by 21% and 7.4% separately (sgxstocksignals). 

Obligation capital administration 

As should be obvious from the above figure, Viva Industrial Trust had add up to borrowings of S$525 million and an outfitting proportion of 39.8%, as at 31 December 2017. It is important that in spite of its outfitting being underneath the 45% administrative top, regardless it has one of the most noteworthy adapting proportions among stapled trusts and REITs in Singapore. As a state of examination, comparable trusts, for example, Mapletree Industrial Trust (SGX: ME8U) and Frasers Logistics and Industrial Trust (SGX: BUOU) have adapting proportions of 33.8% and 29.3% separately. 

The high equipping proportion may constrain the trust's capacity to grow its portfolio through obligation subsidized procurement later on. Besides, the trust has a moderately low intrigue front of 4.6 times. The intrigue cover is the net property wage separated by its advantage costs. A low intrigue cover implies the REIT (sgxstockpicks) may battle to meet its obligation commitments if its benefit diminishes. 

Portfolio synopsis 

At long last, the portfolio synopsis gives financial specialists data on how maintainable the trust's rental salary stream is. 

There are two things to feature from the above table. 

Initially, Viva Industrial Trust's weighted normal rent expiry (WALE) dropped from 3.1 years to 2.6 years. The WALE is the normal time allotment until the point when the present occupant contract terminates. The more extended the WALE, the more unsurprising and secure the trust's pay stream. 

Besides, the portfolio had a normal land rent of 33.7 years. This is a moderately brief time period and the trust should fork out extra cash-flow to build the land residencies when the rent lapses. 

The primary concern 

In light of its 2017 money related year comes about, we can see that Viva Industrial Trust has both great and terrible parts of its business. On the positive side, the trust has shown expanding benefit because of the development of its income and dispersion to unitholders. 

In any case, on the other side, it has a genuinely extended accounting report. For the time being, I anticipate that the trust will be capable satisfy its obligation commitments yet its high adapting proportion may restrain its capacity to make yield-accretive acquisitions. Besides, the portfolio has genuinely short land residencies. Thus, it might need to make extra installments later on to recharge the land residency contracts of its properties.

DailySGXSignals

iFAST Corporation Ltd is an Internet-based that has a presence in Singapore, Hong Kong, Malaysia, China, and India.

(SGX: AIY) iFAST Corporation Ltd is an Internet-based venture items dispersion stage that has a nearness in Singapore, Hong Kong, Malaysia, China, and India. It has two principle business divisions: one that takes into account buyers (B2C), and ones that obliges money related guides (B2B). 

The organization discharged its 2018 first quarter profit refresh in late April. Here are five key positive focuses to note: 

1. iFAST's benefits under organization (AUA) expanded by 24.8% year-on-year to hit a record high of S$8.07 billion starting at 31 March 2018. The expansion, which denoted the seventh back to back quarter of record AUA levels for the organization, was additionally no matter how you look at it: Singapore, Hong Kong, and Malaysia's AUA were up by 17.6%, 32.6%, and 44.3%, individually, on a year-on-year premise. 

2. iFAST's repeating net income for the revealing quarter was up by 22.6% year-on-year to S$11.5 million. 

3. The greater part of iFAST's topographical markets, (except for China) saw an expansion in benefit in the announcing quarter contrasted with a year back. 

4. The organization's asset report stayed solid with money and money reciprocals of S$20.6 million, and aggregate obligation of only S$17,000, starting at 31 March 2018. 

5. iFAST climbed its profit per share by 10.3% from 0.68 pennies for every offer in 2017's first quarter to 0.75 pennies.

Trading Signals With: www.mmfsolutions.sg/

To Get More: sgxstocksignals, sgxstockpicks, bestsignalssingapore

SGX Strategy: 2018 Sailing Into Another Good Year

Stellar increases for values 
Valuations are not inordinate 
Stay with the center names 

Values Had a Good Year 

Worldwide values had a decent year, drove by positive thinking of better worldwide financial viewpoint and upheld by sound corporate profit development in a for the most part generous working condition. Regardless of some worry amid the year, including North Korea's rocket trying and the Middle East pressures, unpredictability in the market remained generally low and combined with solid corporate outcomes, most lists heaped on solid twofold digit picks up. The MSCI China Index increased half YTD, far surpassing the additions of 19% by the MSCI World Index and the 36% pick up by the MSCI Asia Pacific ex-Japan Index. Good faith about China likewise prompted the solid outperformance of the Hang Seng Index and the CSI300 Index. 

SG Banks and Property Led Gains 

In Singapore, the STI rose 20% YTD. Banks did well as most appreciated expansive based development and this prompted a 30% pick up for the Financial Index. Floated by the dynamic exchanges in the aggregate deals showcase, Singapore Real Estate file additionally did well, up 28% for the year as the URA Index likewise posted the principal increment after 15 fourth of decay. 

Go for Quality

While valuations have climbed for the current year, profit have demonstrated great development. For instance, the S&P 500 is currently exchanging at around 22x versus 21x toward the finish of a year ago. As far as profit, S&P 500 2017 income projections have climbed pointedly from somewhat above US$106 toward the finish of a year ago to an expected US$142 as of now. Moreover, profit are presently anticipated to grow 3.5% to US$147 one year from now and up 10.3% to US$162 in 2019. 

Going into 2018, we don't expect a rehash of the current year's stellar additions, yet upside remains. For Singapore stocks, our picks are CapitaLand, City Developments, DBS, Frasers Centrepoint Trust, Frasers Logistics and Industrial Trust, Keppel Corp, Mapletree Greater China Commercial Trust, Sembcorp Industries, SingTel, UOL, Venture Corp, Wheelock Properties and Wing Tai. 

In Hong Kong, the current 6% remedy (from Nov 17 high to Dec 17 low) has conveyed the stocks under our scope to levels which are appealing to position for better profit in 2018. 

We have BUY evaluations on China Merchants Port (144 HK), China State Construction International (3311 HK), COSCO Shipping Ports (1199 HK), CSPC Pharmaceutical (1093 HK), Fosun International (656 HK), KWG Property (1813 HK) and Longfor Properties (960 HK).

LIVE Stock Trading SIGNALS With : http://www.mmfsolutions.sg/

12/7 KL Malaysia Evening Market Summary.

FBM KLCI: 1,719.05 pts (+0.72pts, +0.04%)

The FBM KLCI staged a mild recovery, underpinned by gains in selective plantation heavyweights on Thursday. Market breadth stayed negative with 455 decliners vs. 388 advancers, while 405 counters traded unchanged. Notable gainers include semiconductor-related players like Malaysia Pacific Industries (+46.0 sen), Inari (+11.0 sen) and Unisem (+7.0 sen).

Top 3 Active stocks:

SAPNRG (5218): RM0.965 (-24.5 sen)
HIBISCS (5199): RM0.785 (+2.5 sen)

SIME (4197): RM2.15 (-5.0 sen)

Volume: 1.81 bln (100-day avg vol: 2.30 bln)
Value: RM2.51 bln
Market Breadth: ?:388 ?:455
Crude palm oil: RM2,509 (-RM26)

Dow Futures: 24,169 pts (+12 pts)

LIVE Stock Trading SIGNALS With : http://www.mmfsolutions.sg/

To get More Updates: 

Stock signals, Stock tips, stock Picks, Stocktips Malaysia, bursa malaysia stock signals, klse daily stock signals, KLSE stock picks, KLSE Stock Recommendations, KLSE stock signals, stock market news, stock market update, Stock Picks Malaysia, Stock trading picks,& Stock trading strategy

  

For More Visit Us: www.mmfsolutions.sg 

Tel- +65-3158-2180 Email- info@mmfsolutions.sg

11/30 KL Malaysia Evening Market Summary.

FBM KLCI: 1,717.86 pts (-2.52pts, -0.15%)

The FBM KLCI slipped in the eleventh hour, due to selling-pressure in Petronas-linked companies amid portfolio rebalancing. Market breadth was also tepid, with 500 decliners vs 367 advancers, while notable underperformers include furniture makers like Latitud (-12.0 sen), Heveaboard (-5.0 sen) and Lii Hen Industries (-5.0 sen).

Top 3 Active stocks:
SIME (4197): RM2.35 (+50.0 sen)
PMETAL (8869): RM5.20 (+11.0 sen)

SPSETIA (8664): RM3.49 (+7.0 sen)

Volume: 2.47 bln (100-day avg vol: 2.29 bln)
Value: RM6.03 bln
Market Breadth: ?:367 ?:500
Crude palm oil: RM2,584 (+RM21)

Dow Futures: 23,983 pts (+65 pts)

LIVE Stock Trading folio : SCOMNET; CNOUHUA; UMWOG; HUAAN; AIRASIA.

LIVE Stock Trading SIGNALS With : http://www.mmfsolutions.sg/

To get More Updates: 

Stock signals, Stock tips, stock Picks, Stocktips Malaysia, bursa malaysia stock signals, klse daily stock signals, KLSE stock picks, KLSE Stock Recommendations, KLSE stock signals, stock market news, stock market update, Stock Picks Malaysia, Stock trading picks,& Stock trading strategy

  

For More Visit Us: www.mmfsolutions.sg 

Tel- +65-3158-2180 Email- info@mmfsolutions.sg

Blue Chip Stocks Focus at now

Investors often turn to blue-chip stocks for the earnings stability and solid annual dividends. However, not all blue-chip companies offer the same dividend prospects. An effective investment method would be to buy consistently and making use of dollar cost averaging to avoid over-exposure to stocks at high price levels. Over the long investment horizon of 10 years or more, consistent investments could bring the biggest yield to one’s investments portfolio.

**Banks**

DBS Bank, Singapore’s largest bank by assets has seen strong price performance gains during the year. Its dividend yield is currently hovering at slightly less than 3%, making it less attractive in terms of dividends returns. OCBC Bank, another local banking giant edged out DBS in terms of dividend yield at 3.17%. UOB Bank has the lowest among the big 3 banks in Singapore, offering only 2.87% annual indicative dividend yield based on last declared dividends and current closing prices as at 6 October 2017. Strong earnings growth were chalked up by the 3 banks, with DBS recording 8% net profit growth as at 2Q 2017, OCBC recording 22% jump while UOB notching 5.5% net profit gains as at 2Q 2017. Prices of these blue chip stocks have risen strongly during the year and depressed dividend yield. Investors should not be looking to pile heavily into these banking stocks when yield is depressed. U.S. is on track to raise interest rates in 2018 and interest rate hike will have negative price consequences which will pull down high yield stocks.

**Telcos**

Singapore Telecommunications, also commonly known as Singtel, being the largest telecommunications company in Singapore is also a great dividend yielding stock. There is intense competition among the telco space in Singapore with Singapore regulator announcing the potential entry of a fourth telco operator. Headwinds have plagued the industry in general. One saving grace would be Singtel has managed to secure the 700MHz spectrum band which could be beneficial to its bottom line since analyst has projected huge capex savings from its winning bid for the spectrum. Netlink Trust IPO which was completed recently during the year could boost potential one-time special dividend payout. It is currently offering a decent 4.76% dividend yield. A close competitor to Singtel, Starhub price performance has been lackluster during the year. Investors may accumulate its shares as it is currently offering a pretty high dividend yield of 6.8% per annum. M1 had suffered the similar fate from lackluster mobile growth and is currently priced at 6.2% annual dividend yield. The sustainability of the dividends is very much dependent on future free cash flows available for distribution and investors should not rush straight into buying the stock due to its current dividend yields from historical earnings and cash reserves.

**SGX**

Singapore Exchange Limited, the sole stock exchange operator in Singapore is a listed entity itself. Its full front focus in developing its derivatives trading business and diversifying away from pure stock trading has started to pay dividends which contributed strongly to its bottom line. 3-year CAGR earnings growth stood at 3%, partly fueled by the increasing trading volume for its China-based futures derivatives products. Singapore Exchange is essentially a monopoly and solid proxy to the vibrant Singapore financial hub. Earnings are expected to be stable, barring extreme investors and fund withdrawals. Singapore government’s push towards enhancing Singapore’s global wealth management status will trickle down and benefit Singapore Exchange as a key player. The dividend yield of SGX stood at 3.67%, and investors could consider allocating a proportion of investable funds into the growing monopoly.

**Wilmar**

Commodity price plunge as a result of China slowdown in late 2015 has put Wilmar International in a difficult financial position. However, Wilmar has weathered the storm well, posting a net profit of USD60 million as compared to a net loss of USD220 million in the preceding year. The Board has decided to raise the dividend rate as well for the commendable first half performance. The dividend yield is at a low end of 2% per annum but a recovery in earnings may see the Board rewarding investors with higher dividends as a result from stronger cash flows from its core palm oil cultivation business.

**ThaiBev**

Thai Beverage Public Co., Ltd., the maker of Thailand’s top beer beverage Chang beer brand portfolio, has been a solid dividend paying stock for years. Despite being the fourth largest producer in terms of global sales volume, its share price is valued at a significant discount to global peers. Its P/E is currently at around 16 times historical earnings and is considered low by taking into account the stable earnings base from its alcoholic beverage segment. Beverage companies are well known for their solid dividend yield and ability to maintain its payout even at recessionary economic conditions. It is currently offering a sweet dividend yield of approximately 3.55% which should provide investors a steady stream of dividend income for the coming years.