Raffles Medical Group
Price – $1.29
Target – $1.30

Raffles Medical Group’s (RMG) 1H17 results came in slightly below our expectations with the top-line dipping 0.3% due to softer demand from foreign patients and lacklustre healthcare contributions while net profit was flat – only inching up 0.3%. Management controlled costs well with lower purchases and contracted service costs but staff costs grew 1% owing to recruitment of doctors and specialists ahead of the opening of RMG’s hospital extension in 4Q17. Meanwhile, Raffles Chongqing is targeted for completion in 2H18 while the targeted completion of Shanghai hospital has been pushed to 2H19 due to construction issues. We trimmed 2018 – 2019 net profit forecast by 11 – 15% to factor in higher upfront costs ahead of its new hospitals in Chongqing and Shanghai, and a slower ramp-up of the hospitals. Maintain HOLD. UOB-Kay Hian (1 Aug)

CDL Hospitality Trusts
Price – $1.59
Target – $1.70

CDL Hospitality Trusts’ (CDLHT) 2Q17 hotel occupancy rate rose 2.7 percentage points y-o-y while room rates dropped 4.7%, leading to revenue per available room (RevPAR) to dip 1.4%. Nonetheless, Singapore’s hospitality sector showed signs of bottoming out and we estimate RevPAR to grow 3 – 5% in 2018 – 2019 respectively. The performance of New Zealand hotel continued to shine while recent acquisitions of European hotels should kick-start their contributions from 3Q17 onwards. Meanwhile, weakness in Maldives and Japan are likely to persist on the back of new hotel room supply and competitive pricing pressures. Given FY17F – 18F yields of 6.3 – 6.6%, we deem CDLHT as attractive as it remains as one of the best proxies to benefit from the expected rebound in Singapore’s hospitality. Maintain BUY. RHB Research (31 Jul)

Frasers Logistics & Industrial Trust
Price – $1.11
Target – $1.22

Frasers Logistics & Industrial Trust (FLT) reported 3Q17 results met our expectations. Although gross revenue of AUD40.2m came in 0.2% lower than the forecast disclosed in its IPO prospectus, distribution per unit of $0.0175 beats forecast by 6.7% largely due to lower-than-expected finance costs. As at 30 Jun-17, FLT’s portfolio occupancy remained high at 99.3% with a long WALE of 6.7 years, while its balance sheet remained healthy with an aggregate leverage of 29.3%. Meanwhile, we noted that the Reserve Bank of Australia recently released an upbeat assessment of the Australian economy, citing improvements in labour market conditions, household consumption growth and investments. We believe this should benefit the logistics industry. Reiterate BUY. OCBC Securities (31 Jul)

CapitaLand Retail China Trust
Price – $1.63
Target – $1.76

CapitaLand Retail China Trust (CRCT) delivered stable 2Q17 distribution per unit (DPU) of $0.0262, rising marginally by 0.4%. As the impact from higher property taxes rolls off next quarter, we should see DPU growing at a high single-digit. Portfolio occupancy was stable at 96.2% while rental reversion improved to 7.1%. Meanwhile, CRCT is divesting Anzhen to BHG for $230m which would extend its debt headroom to acquire assets. With BHG’s 40% lease of net lettable area in CRCT’s Wangjing also restructured with a shortened rent review cycle of 2 – 3 years from five, we foresee that the higher frequency of reviews would yield more than 10% incremental rent over the lease period. Maintain BUY. UBS Research (27 Jul)