Asian Healthcare Specialists Limited - IPO Factsheet

Business
Asian Healthcare Specialists, an orthopaedic healthcare specialist and provider, has a team of experienced orthopaedic specialists who provide a wide spectrum of general and subspecialised orthopaedic, trauma and sports services such as knee/hip replacements, sports medicine/surgery, spine surgery, foot/ankle surgery and minimally invasive orthopaedic procedures.

Asian Healthcare and its subsidiaries have five senior and experienced orthopaedic medical specialists operating under “The Orthopaedic Centre” brand at four clinics at convenient and accessible locations across Singapore. Each of the medical specialists are subspecialists in specific areas of orthopaedic, trauma and sports medicine, ranging from specialities in spine (neck and back), shoulder, elbow, hip, knee and foot and ankle.

The Group aims to be a one-stop integrated healthcare provider for all musculoskeletal-related medical care, including post-surgery rehabilitation services such as physiotherapy and ancillary services such as pain management.

SLB Development - IPO Factsheet

Business
SLB Development Ltd (“SLB”) is a diversified property developer across the residential, mixed-use as well as industrial and commercial sectors, and property development projects ranging from small to large scale. SLB has built strong networks of business relationships with other property developers and contractors, and has expanded its presence beyond Singapore to the PRC.

Ezion Holdings - Delayed Resurrection

Ezion’s successful restructuring puts it on the path to recovery, and could result in a multiples re-rating. However, valuations are highly dependent on conversions by shareholders and security holders. Current book value is closer to 15.1 S cents assuming 50% conversion by Series B security holders. Share price of S$0.197 is at a premium to that of peers who have significantly lower debts. Upgrade to HOLD and raise target price to S$0.18, pegged to 1.0x 2019F P/B. Entry price: S$0.151.

Kimly Ltd - Defensive Staple On Verge Of Inorganic Expansion

Kimly operates and manages coffee shops and food courts locally, which have a defensive nature accompanied by rich cash flows. Going forward, we expect Kimly to add up to 1-2 coffee shops a year, as well as ramp up on operating third party brands, which could contribute 5-8% growth pa during FY19F-20F. In addition, with M&As in the pipeline, we believe that growth would be exciting in the coming years. As a result, we initiate coverage with a BUY with DCF-derived TP of SGD0.43 (30% upside), implying FY18F P/E of 22.8x.

Singapore Property - Physical market continues with strength; where are stocks heading?

Tulip Garden sold for S$906.9m
Yanlord Land Group announced that a joint venture between the group and MCL Land has successfully tendered for the en-bloc sale of the freehold Tulip Garden for S$906.9m, the second-largest collective sale so far, bringing YTD collective sales done to S$6.5bn. According to Business Times, the sale price is 20% higher than the reserve price and translates to S$1,790psf per plot ratio, 5-17% higher than nearby transactions. The site could yield 670 units, up from the current 162 units. We estimate a breakeven ASP of S$2,200-2,300psf, implying a potential selling price well above S$2,500psf.

Singapore Property - Rising Home Prices

Fresh data points validate our POSITIVE sector view
Maintain POSITIVE sector view on Singapore property developers. Fresh data points continue to validate our call for a property price rebound. Significant premiums achieved at new launches suggest initial estimates can be sustained, calling for a strong 3.1% QoQ rise on the 1Q18 URA PPI. Consultants recently raised their forecasts and now see home prices rising by 7-15% this year. Developers can capitalize on the strengthening market by acquiring 15 residential sites currently up for tender. With significant exposure to Singapore’s residential market, Bukit Sembawang and CityDev are the biggest beneficiaries of this trend.

Singapore Real Estate - Are We Nearing The Peak Of The En Bloc Cycle?

While the en bloc market has staged a stellar comeback since May 2017, we believe that the current cycle is nearing its peak and is expected to slow down by 2H. Key reasons for this are steady build up in supply pipeline, rising land costs, tighter policy framework and sufficient restocking of landbank. Moving ahead, we expect developers to be selective in their bids with preferences for relatively smaller and well-located sites. Overall, we expect property prices to jump 5-10% YoY in 2018, but we remain cautious on a longer-term sustainability of such price increases. Maintain OVERWEIGHT, with APAC Realty and CapitaLand as Top Picks.

FTSE Singapore Straits Times Index - Confirms Bullish Bias

The bull are back. On Monday, the FSSTI jumped 7.46 pts to close at 3,449.96 pts. The positive performance led the index to breach above the previous 3,443-pt resistance level. Technically speaking, this confirms the momentum that we highlighted in the reversal “Bullish Harami” candlestick pattern on 5 Apr. As a result, the bearish bias we saw in 27 Feb’s “Bearish Engulfing” candlestick pattern is no longer in play. Based on the daily chart above, we opine that the bulls are back in control of market sentiment.