Recent Reports

  • Singapore Healthcare Monthly – Public healthcare still in the lead

    Tin Min Ying | Phillip Securities Research Pte Ltd | Jan 22, 2019
    • Singapore’s hospital admissions grew 4.3% YoY in Nov’18 with the public sector taking a larger share.
    • Singapore’s birth rate fell 4.9% YoY in Sep’18, the fourth month of contraction.
    • The number of Singapore citizens aged 65 and over grew 6.0% YoY in 2018, unchanged from 6.0% YoY in 2017.
    • Malaysia’s B40 Health Protection Fund scheme will provide insurance protection for the bottom 40% of the population.
    • Maintain NEUTRAL for the Singapore Healthcare Sector.
  • Frasers Centrepoint Trust – Falling tenant sales hindrance to healthier reversions

    Tara Wong | Phillip Securities Research Pte Ltd | Jan 22, 2019
    • 1Q19 NPI and DPU in line with our forecast. Improved NPI margins for Causeway Point and Changi City Point (CCP), with the latter performing exceptionally well.
    • Secured refinancing and prepayment of certain 2019 borrowings and 2020 debt.
    • Waning rental reversions for CCP and Northpoint North Wing. Flat same-store tenant sales growth during the Sep-Nov 2018 period, declining in excess of -1% YoY.
    • Maintain Neutral with unchanged TP of S$2.21.
  • First REIT – A cautionary tale

    Tara Wong | Phillip Securities Research Pte Ltd | Jan 21, 2019
    • FY18 Revenue and NPI were in line with our forecast. DPU outperformed our estimates by c.5% due to a S$15mn income tax benefit arising from a write-back of provision for deferred tax on fair value loss on investment properties, as a result of a reduced tax rate.
    • 4.7% and 4.5% YoY boost in FY18 Gross Revenue and NPI, respectively, driven by two acquisitions made in 4Q17.
    • Cost of debt relatively stable at c.3.84% despite rising interest rates.
    • Receivables continue to mount, against backdrop of uncertainty over upcoming lease expires, though some S$8mn of rental payments has since been received on Jan 15, 2019.
    • Ceasing coverage due to reallocation of internal resources.


  • First REIT – Challenging times

    Tara Wong | Phillip Securities Research Pte Ltd | Jan 16, 2019
    • FIRT will be re-positioned to identify more strongly with the new co-Sponsor, OUELH.
    • No compromise on paying distributions to unitholders, against the backdrop of extended receivables days.
    • Price overhang as fund-raising is likely in the near-horizon in order to execute portfolio diversification strategy of acquiring from new co-Sponsor, OUELH.
    • De-rating catalyst: expiring leases likely to be re-negotiated with a lower quantum and/or on IDR-denominated terms (currently on SGD-denominated terms).
    • Maintain Neutral; new target price of $0.88 (previously $1.30).
  • 2019 U.S. Banking Sector Outlook – Market too pessimistic

    Edmund Xue | Phillip Securities Research Pte Ltd | Jan 3, 2019

    • We have an Overweight recommendation for the U.S. Banking Sector. Valuations are at 25-year lows.
    • Recent flattening of the yield curve is likely to have bottomed and will not herald a recession in the upcoming year
    • Funding costs will pick up pace but offset by faster loan repricing and sufficient supply of funds of banks
    • Asset quality remains benign, with small business commercial and industrial (C&I) loans driving loans growth

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