1. Breadtalk Group (Breadtalk)

The F&B giant’s revenue took a hit recently as both directly operated stores and franchisees in China underperformed on top of the reduction of Food Atrium outlets.

Fortunately, restaurant sales from Din Tai Fung went up by 8.3% year-on-year and Breadtalk decided to pull the plug on franchisees in China.

The group recently reported new segments for 4orth, its new F&B business concepts division that is still in red by $0.4 million in 9M17’s earnings before interest and taxes terms.

Nevertheless, DBS Research thinks Breadtalk’s decisions to consolidate underperforming outlets and sell its stake in properties such as CHIJMES and AXA Tower are potential stock catalysts.

As such, DBS Research remains positive on Breadtalk Group Limited (SGX: 5DA), maintaining a BUY call with a target price of $2.01 and highlighting the declared interim dividend of $0.01.

2. Genting Singapore (Genting)

After 12 quarters of flat or negative growth in VIP rolling chip volumes (the amount of credits premier gamers gamble at the casinos), Genting saw a 28% year-on-year (24% quarter-on-quarter) growth to US$5.5 billion.

Even the win rate (the amount of money the casino wins) is above average. VIP rolling chip volume growth was the biggest contributor to Genting’s 37% year-on-year growth in 3Q17 adjusted EBITDA to $320 million.

After curbing bad debts, Genting is focusing on growth by “cautiously extending credit” to its premier patrons, causing DBS Research to raise its growth expectations for Genting from 3.0% to 7.0%.

Furthermore, its current robust balance sheet and net cash position of about $3.1 billion put Genting in a good position to prepare for Resorts World Sentosa property redevelopment and Japan casino next year.

All things considered, DBS Research is optimistic about Genting Singapore PLC’s (SGX: G13) outlook in the coming quarters and maintains a BUY call with a target price of $1.51.

3. Frasers Commercial Trust (FCOT)

Previously, Hewlett Packard (HP) announced its plans to terminate its lease after it expires on 30 Nov 2017 but recently decided to make a gradual exit over the next 13 months.

That said, it provides some time for FCOT to search for replacement tenants to fill in the significant recurring income gap (11.1% of FCOT’s total gross rental income as at Sep 2017) at Alexandra TechnoPark (ATP).

HP’s staggered and gradual termination of its lease presents a silver lining for the REIT to execute its $45-million asset enhancement initiative (AEI) to improve future rental income from replacement tenants.

DBS Research expects FCOT to tide over this minor setback on the back of the AEI at ATP, overall improvement in CBD office rents, and FCOT possibly satisfying the demand for new business parks.

Considering that Frasers Commercial Trust (SGX: ND8U) has about $40 million of capital gains, DBS Research expects dividends to remain stable and maintains a BUY call with a target price of $1.55.