OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED

Research House: Credit Suisse

Price Call: BUY

Target Price: 3.15

Market Compass

28 May 2013~ Good Morning Singapore!

Singapore Idea Snippets:

28 May 2013~ Good Morning Singapore! Central Execution Team - The Excellence of Execution This product is made available by your Central Execution Team, for you as TRs of OCBC Securities to help you with your business and therefore it is confidential and only for internal circulation. It is not intended for onward circulation to non-OSPL TRs, clients or any other third party in this or any other version. Neither is this intended to be relied upon as a sole basis for any recommendation. TRs must also consider their clients' investment objectives, financial position and needs when intending to make or making any recommendation. For the front desk, by the front desk. All feedback to make this a better product is welcome. Global Flash: While You Were Sleeping Source: Marketwatch Quote for the day :The final test of a gentleman is his respect for those who can be of no possible service to him. - WILLIAM LYON PHELPS CREDIT SUISSE Securities says... GLOBAL LOGISTIC PROPERTIES | OUTPERFORM | TP: S$3.15 FY13 core net profit of S$350 mn (+11% YoY) was in line Growth was driven by Brazil, strong development momentum, rental growth in China, but partly offset by depreciation JPY and loss of income from divestment of 33 properties into GLP J-REIT Rents and lease ratios maintained stable across the portfolio and development starts beat expectations slightly in JP and CH in FY13 In FY14, management is targeting 2.5 mn sq m development starts in CH, 0.4 mn sq m in JP and 0.31 mn sq m in BR Total estimated project cost is ~US$2 bn With US$1.96 bn cash pile and 8.2% net debt/asset, GLP has the flexibility to finance capex No change in cap rates yet although sentiment is pointing towards rents and prices eventually improving in JP GLP continues to acquire land banks, acquiring 4.2 mn sq m in CH with 10.5 mn sq m reserves We raise FY14-15E core profit estimates slightly, by 0.2-1.3% and have incorporated 2.5 mn sq m development starts in FY14 Our new TP and RNAV is S$3.15 (from S$3.00) driven by accelerated development starts We continue to like GLP due to its logistics exposure, with a growth kicker from its development completions DBS VICKERS Securities says ... IHH HEALTHCARE | HOLD | TP:S$1.55 1Q core net profit (excl. exceptional items) of RM133.5m was 17% higher than a year earlier, accounting for c.18% of our FY13F earnings Revenue and EBITDA grew by 29% and 24% to RM1.6bn and RM347.6m respectively, partly driven by a full quarter of Acibadem's consolidation in 1Q13, compared to only two months a year earlier In addition, the Group also saw revenue growth from existing operations and contribution from new hospitals EBITDA margins (excl PREIT) weakened marginally by 0.8ppts to 21.7% (1Q12: 22.5%) as it saw continued losses from its new hospitals It also faced cost pressures from personnel and operating lease expenses, particularly its Singapore hospitals We estimate FY13F EBITDA margin to be 20.8% Novena Hospital posted a smaller EBITDA loss of RM3m (from -RM15.6m/ -RM16.4m in 1Q12/ 4Q12) This was achieved on the back of higher revenue of RM37.2m and streamlining of its operating costs Hence, it seems like management's target of achieving EBITDA breakeven by 1H13 is within reach We raised our TP to S$1.55 (RM3.73) on the back of a higher EV/EBITDA multiple of 22x (from 18x) on FY13F/14F earnings for its Singapore operations and its international operations (14x, from 13x) with the re-rating of peers We also adjust for the higher market values for its holdings in listed entities, namely PREIT and Apollo Hospitals Maintain HOLD, given its relatively rich valuations at 41x/35x on FY13F/14F earnings OCBC Securities says... DYNA-MAC HOLDINGS | HOLD | TP:S$0.44 Dyna-Mac Holdings reported 1Q13 results that were slightly below our expectations 1Q13 revenue fell by 19% QoQ to S$60.1m, while net profit fell 24% QoQ to S$6.7m; as there is little or no seasonality involved in Dyna-Mac's business, we believe a QoQ comparison better illustrates the changes in the group's performance Gross margin was 24.4% in 1Q13 (4Q12: 23.1%), within the typical range of 20-30% The group also suffered a fair value loss on financial instruments of S$1.2m in 1Q13 due to unfavourable movements on the contracted USD forward rates against spot rates As of 14 May-13, its order-book fell to S$113m (27 Feb-13: S$134m), providing cover for under two quarters We also understand that Dyna-Mac is tendering for a number of large projects and expects to rebuild its order-book significantly in 2H13 While we are positive over Dyna-Mac's medium- to long-term outlook given the large backlog of floater orders across the industry, we are also mindful that its low order-book may pose a risk to near-term earnings In addition, the group's expansion into Malaysia and Guangzhou remains a work-in-progress, and bottom-line earnings growth may only be evident in FY14-15F After adjusting our model to incorporate the 1Q13 results, our fair value estimate declined to S$0.44 (previously S$0.50).