Maple Industrial Trust Q1 DPU up 14.1%

Mapletree Industrial Trust (MIT) on Tuesday reported distribution per unit of 2.26 cents for the fiscal first quarter ended June 30, 2012, a 14.1 per cent increase from a year ago.
Net property income increased 26.4 per cent year on year to $48.34 million from $38.24 million, while distributable income rose 27.1 per cent to $36.9 from $29.03 million a year ago.
Gross revenue rose 21.6 per cent to $66.86 million, largely contributed by the acquisition of eight flatted factories and three amenity centres which was acquired from JTC Corporation on August 26, 2011.
Excluding the August 2011 acquisitions, gross revenue increased by 8.4 per cent year on year, due to higher rental rates
secured and higher occupancies achieved for the group's initial portfolio of 70 properties.
The portfolio continued to enjoy stable occupancies across key property segments. Average passing rent increased to S$1.56 per square foot per month from S$1.55 psf/mth in the previous quarter. Average portfolio occupancy remained stable at 94.9 per cent.
Leases that remain due for renewal in Financial Year 2012/2013 represent just 13.0 per cent of MIT's revenue, while longer lease packages have raised the weighted average lease duration to expiry of the Portfolio increased to 2.6 years from 2.5 years in the previous quarter.
As at June 30, 2012, no single tenant and trade sector accounted for more than 3.7 per cent and 15.0 per cent of the portfolio's monthly rental revenue respectively.
For the April 1, 2012 to June 30, 2012 period, MIT has declared an income distribution of 2.08 cents per unit and capital distribution of 0.18 cents per unit, payable on August 29.
 
 

Starhill Global Reit's Q2 DPU inches up 3.8%

Starhill Global Real Estate Investment Trust (SGReit) said on Tuesday that its distribution per unit in the second quarter rose 3.8 per cent year-on-year to 1.08 cents.
This translates to an annualised distribution yield of 6.53 per cent, based on SGReit's closing price of $0.665 per unit on June 30.
YTL Starhill Global Reit Management, SGReit's manager, said unitholders can expect to receive their Q2 DPU on Aug 28.
Income available for distribution was $23.31 million, an increase of 2.0 per cent from the same period last year, while net property income has risen to $37.14 million for the second quarter ended June 30, up 4.4 per cent from the year-ago period.
Gross revenue inched up 4.8 per cent year on year to $46.36 million, helped by rental contributions from Wisma Atria and increased occupancy in the office properties.
YTL Starhill Global said Asia continues to exhibit its resilience despite global economic headwinds in the second quarter, but warns that the risk of further deterioration in the global conditions remains.
Against this backdrop, SGReit said its portfolio of long term leases and master leases with built-in-step-up rent reviews and short term leases will provide income stability and growth for its unitholders.
 
July 24, 2012 19:21 ET (23:21 GMT)
DJ Swiber Holdings Prices S$150M Issuance of 5.80%, Fixed-Rate Bonds Due 2013
 

 By Chun Han Wong SINGAPORE--Swiber Holdings Ltd. (AK3.SG) said Wednesday it has priced at par an issuance of 150 million Singapore dollars (US$119 million) worth of 5.80% fixed-rate notes due 2013. 

The issuance is part of Swiber's S$700 million multicurrency medium-term note program, and Swiber will use the net proceeds to refinance its debt, the Singapore-listed company said in a statement.
DBS Bank has been appointed as lead manager and bookrunner for the issuance, the oil-and-gas-services provider said

 

.

Raffles Medical RAFG.SI RFMD SP

HEALTH CARE & PHARMACEUTICALS

EQUITY RESEARCH

Downgrade to Neutral

Half-time update

July 25, 2012

Rating

Down from Buy Neutral

Target price

Increased from 2.64 SGD 2.87

Closing price

July 23, 2012 SGD 2.58

Potential upside +11.2%

Action: Positive on company, Neutral on valuations

Valuations look fair at current levels. The stock trades close to peers’

average P/E. Investor demand for healthcare stocks remains strong but on

the basis of fundamentals, we struggle to justify further significant

multiples expansion that would warrant a Buy rating. With potential upside

of only 11.2% to our new target price, we turn Neutral on the stock.

We adjust our forecasts downwards on the back of rising wage costs

resulting from wage hikes to match revised public sector pay scales.

Nonetheless, we remain positive on RFMD as we see it as a defensive

company riding on strong structural healthcare demand due to an aging

population locally, coupled with company-driven expansion plans.

Catalyst: Listing of IHH

Sentiment seems to have overtaken fundamentals as the key stock price

driver for RFMD, which has re-rated by 17% since the announced listing of

IHH. With the IHH IPO 30x over-subscribed, demand for healthcare stocks

is strong. The price performance of IHH, upon listing, will arguably impact

the stock price for RFMD.

Valuations/Risks

We change our valuation methodology from a takeout basis to a P/E basis

anchored on average P/E valuations of peers, while rolling our earnings to

a FY13F basis. The result is a slightly higher TP of SGD2.87 and a

downgrade to Neutral. Key risks: 1) a decline in medical tourists; 2) an

inability to attract and retain medical staff; 3) an inability to control staff

costs and 4) unfavourable regulatory developments.

31 Dec FY11 FY12F FY13F FY14F

Currency (SGD) Actual Old New Old New Old New

Revenue (mn) 273 329 319 390 375 440

Reported net profit (mn) 50 60 55 74 66 80

Normalised net profit (mn) 50 60 55 74 66 80

FD normalised EPS 9.43c 11.30c 10.28c 13.95c 12.11c 14.58c

FD norm. EPS growth (%) 9.6 18.9 9.0 23.4 17.8 20.4

FD normalised P/E (x) 26.7 N/A 24.5 N/A 20.8 N/A 17.3

EV/EBITDA (x) 19.7 14.6 17.5 11.5 14.4 11.2

Price/book (x) 4.0 N/A 3.5 N/A 3.1 N/A 2.6

Dividend yield (%) 1.6 N/A 1.6 N/A 1.6 N/A 1.6

ROE (%) 16.2 17.7 15.4 19.1 15.8 16.5

Net debt/equity (%) net cash 2.1 net cash net cash net cash net cash

Source: Company data, Nomura estimates

Anchor themes

We believe continued demand

for private healthcare in the

region will support the longterm

prospects of Singapore

healthcare service operators,

which enjoy strong operating

margins, brand equity, and high

entry barriers.

Nomura vs consensus

We are 2% below consensus

estimates on FY12F earnings.

Research analysts

Singapore Health Care & Pharmaceutic

See Appendix A-1 for analyst

certification, important

disclosures and the status of

non-US analysts.

Nomura | Raffles Medical July 25, 2012

2

Key data on Raffles Medical

Income statement (SGDmn)

Year-end 31 Dec FY10 FY11 FY12F FY13F FY14F

Revenue 239 273 319 375 440

Cost of goods sold -160 -185 -218 -255 -298

Gross profit 79 88 101 120 143

SG&A -26 -29 -36 -41 -48

Employee share expense

Operating profit 53 60 66 78 95

EBITDA 60 67 74 88 105

Depreciation -7 -7 -8 -9 -11

Amortisation

EBIT 53 60 66 78 95

Net interest expense 0 0 0 0 0

Associates & JCEs 0 0 0 0 0

Other income

Earnings before tax 53 59 66 78 95

Income tax -8 -9 -10 -12 -14

Net profit after tax 45 51 56 66 80

Minority interests 0 0 0 0 0

Other items

Preferred dividends

Normalised NPAT 45 50 55 66 80

Extraordinary items

Reported NPAT 45 50 55 66 80

Dividends -18 -21 -22 -22 -22

Transfer to reserves 27 29 34 44 58

Valuation and ratio analysis

Reported P/E (x) 29.3 26.7 24.5 20.8 17.3

Normalised P/E (x) 29.3 26.7 24.5 20.8 17.3

FD normalised P/E (x) 29.3 26.7 24.5 20.8 17.3

FD normalised P/E at price target (x) 32.5 29.6 27.2 23.1 19.2

Dividend yield (%) 1.4 1.6 1.6 1.6 1.6

Price/cashflow (x) 27.0 21.2 17.3 16.1 13.6

Price/book (x) 4.6 4.0 3.5 3.1 2.6

EV/EBITDA (x) 21.0 19.7 17.5 14.4 11.2

EV/EBIT (x) 23.8 22.1 19.8 16.1 12.5

Gross margin (%) 33.1 32.4 31.8 31.9 32.4

EBITDA margin (%) 25.1 24.5 23.3 23.4 23.9

EBIT margin (%) 22.2 21.8 20.7 20.9 21.5

Net margin (%) 18.9 18.5 17.4 17.6 18.2

Effective tax rate (%) 14.3 14.8 15.0 15.0 15.0

Dividend payout (%) 40.5 42.3 38.9 33.0 27.4

Capex to sales (%) 2.3 1.8 18.3 8.9 4.2

Capex to depreciation (x) 0.8 0.7 6.9 3.6 1.7

ROE (%) 16.9 16.2 15.4 15.8 16.5

ROA (pretax %) 20.1 18.5 16.2 17.4 20.0

Growth (%)

Revenue 9.4 14.1 16.9 17.5 17.4

EBITDA 14.4 11.4 11.3 17.8 20.3

EBIT 16.5 12.3 10.7 18.6 21.1

Normalised EPS 18.1 9.6 9.0 17.8 20.4

Normalised FDEPS 18.1 9.6 9.0 17.8 20.4

Per share

Reported EPS (SGD) 8.61c 9.43c 10.28c 12.11c 14.58c

Norm EPS (SGD) 8.61c 9.43c 10.28c 12.11c 14.58c

Fully diluted norm EPS (SGD) 8.61c 9.43c 10.28c 12.11c 14.58c

Book value per share (SGD) 0.54 0.63 0.72 0.82 0.95

DPS (SGD) 0.03 0.04 0.04 0.04 0.04

Source: Company data, Nomura estimates

Relative performance chart (one year)

Source: ThomsonReuters, Nomura research

(%) 1M 3M 12M

Absolute (SGD) 12.0 12.5 6.8

Absolute (USD) 12.7 11.5 3.1

Relative to index 5.0 11.2 10.1

Market cap (USDmn) 1,065.8

Estimated free float (%) 46.7

52-week range (SGD) 2.53/2.02

3-mth avg daily turnover

(USDmn) 0.58

Major shareholders (%)

Dr. Loo Choon Yong 52.9

Source: Thomson Reuters, Nomura research

Notes

Expansion plans to drive growth

Nomura | Raffles Medical July 25, 2012

3

Cashflow (SGDmn)

Year-end 31 Dec FY10 FY11 FY12F FY13F FY14F

EBITDA 60 67 74 88 105

Change in working capital -3 3 10 5 24

Other operating cashflow -8 -6 -6 -8 -28

Cashflow from operations 49 64 78 85 102

Capital expenditure -5 -5 -58 -33 -18

Free cashflow 44 59 20 52 83

Reduction in investments

Net acquisitions 0 -110 0 0 0

Reduction in other LT assets

Addition in other LT liabilities

Adjustments 2 0 0 0 1

Cashflow after investing acts 46 -51 20 52 84

Cash dividends -16 -9 -11 -12 -12

Equity issue 4 3 5 5 5

Debt issue -1 -1 22 2 -5

Convertible debt issue

Others 0 0 0 0 0

Cashflow from financial acts -13 -6 16 -5 -12

Net cashflow 33 -57 36 47 72

Beginning cash 74 107 50 85 133

Ending cash 107 50 85 133 205

Ending net debt -85 -28 -42 -87 -164

Source: Company data, Nomura estimates

Balance sheet (SGDmn)

As at 31 Dec FY10 FY11 FY12F FY13F FY14F

Cash & equivalents 107 50 85 133 205

Marketable securities 0 0 0 0 0

Accounts receivable 26 32 35 41 48

Inventories 5 5 7 8 9

Other current assets 0 0 0 0 0

Total current assets 138 87 127 182 262

LT investments 88 200 200 88 88

Fixed assets 144 142 192 328 335

Goodwill

Other intangible assets 0 0 0 0 0

Other LT assets 1 0 0 0 0

Total assets 372 429 519 598 686

Short-term debt 5 5 5 5 6

Accounts payable 51 60 74 87 101

Other current liabilities 10 11 13 15 18

Total current liabilities 65 76 92 107 125

Long-term debt 18 16 39 40 34

Convertible debt

Other LT liabilities 2 2 2 2 2

Total liabilities 85 94 133 149 161

Minority interest 1 1 1 1 1

Preferred stock 0 0 0 0 0

Common stock 177 190 205 220 235

Retained earnings 109 144 180 227 288

Proposed dividends

Other equity and reserves

Total shareholders' equity 286 334 386 448 523

Total equity & liabilities 372 429 519 598 686

Liquidity (x)

Current ratio 2.12 1.14 1.38 1.70 2.10

Interest cover na 850.1 201.2 325.8 na

Leverage

Net debt/EBITDA (x) net cash net cash net cash net cash net cash

Net debt/equity (%) net cash net cash net cash net cash net cash

Activity (days)

Days receivable 38.4 38.8 38.3 37.0 37.0

Days inventory 11.8 10.1 10.1 10.6 10.6

Days payable 117.5 109.5 112.9 115.3 115.2

Cash cycle -67.3 -60.7 -64.5 -67.6 -67.5

Source: Company data, Nomura estimates

Notes

FCF remains strong

Notes

Conservative with low debt level