Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/lendlease-global-commercial-reit" target="_blank" data-smartkarma-citation="entities:28292" rel="noopener">Lendlease Global Commercial REIT (LREIT SP)</a> issues S$200m in perpetual securities at 4.2% pa</h3><p>LREIT has issued S$200m in perpetual securities at 4.20% pa, which was oversubscribed based on the initial target size of S$150m. LREIT raised the issuance size to S$200m and tightened the price to 4.20% from the initial guidance of 4.35%. The perpetual securities is issued under its S$1bn multicurrency debt-issuance programme will bear an initial rate of distribution of 4.20% pa. for the first five years. The first reset of the distribution rate will be on 4Jun26; subsequent resets will take place every five years thereafter. The proceeds will be used for the financing of potential acquisition and investment opportunities as well as for general working capital, capital expenditure requirements and refinancing of existing borrowings. Following the issuance, LREIT's aggregate leverage ratio is expected to drop to 31.3% from 35.4% as at 31Mar21.</p>

SingaporeLendlease Global Commercial REIT (LREIT SP) issues S$200m in perpetual securities at 4.2% paLREIT has issued S$200m in perpetual securities at 4.20% pa, which was oversubscribed based on the initial target size of S$150m. LREIT raised the issuance size to S$200m and tightened the price to 4.20% from the initial guidance of 4.35%. The perpetual securities is issued under its S$1bn multicurrency debt-issuance programme will bear an initial rate of distribution of 4.20% pa. for the first five years. The first reset of the distribution rate will be on 4Jun26; subsequent resets will take place every five years thereafter. The proceeds will be used for the financing of potential acquisition and investment opportunities as well as for general working capital, capital expenditure requirements and refinancing of existing borrowings. Following the issuance, LREIT's aggregate leverage ratio is expected to drop to 31.3% from 35.4% as at 31Mar21.

ASEAN Builder's Scoop (28May21) - LREIT issued perps at 4.2%

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/frasers-logistics-commercial-trust" target="_blank" data-smartkarma-citation="entities:22748" rel="noopener">Frasers Logistics &amp; Commercial Trust (FLT SP)</a> to acquire six freehold properties in Germany, The Netherlands and The UK; Accretive by +1.8% to DPU</h3><ul><li>FLT has proposed an acquisition of interests in three freehold logistics and industrial properties located in Germany and a logistics and industrial property in the Netherlands, from subsidiaries of Frasers Property Limited (FPL SP); and two freehold properties, known as Connexion and Blythe Valley Park, located in the UK from subsidiaries of I.M. Properties. The acquisitions are positioned to capitalise on strong logistics industry tailwinds in The UK and Germany – the two largest e-commerce markets in Europe and among top 10 globally</li><li>The agreed property purchase price for the acquisition is approximately S$548.7m, representing a discount of ~2.5% to the aggregate appraised value of S$562.4m. The aggregate purchase consideration for the acquisition, excluding acquisition fee and other transaction costs is ~S$469.7m</li><li>As at 31Mar21, the acquisitions have a blended occupancy rate of 97.4% with a long WALB of 7.6 years, with tenants that include established third-party logistics companies and corporates, such as Hermes Germany GmbH, Gymshark Limited, Lounge Underwear Limited and BASF SE. All of the New EU Properties are 100% occupied with leases that have built-in consumer price indexation</li><li>With the acquisitions being freehold, the proportion of freehold assets in FLT’s portfolio will increase in proportion from 65.1% to 67.9% upon completion. Portfolio’s WALB will also extend from 4.4 years to 4.7 years</li><li>The estimated NPI yield is ~5%. On a 1H21 pro-forma basis, the acquisitions are expected to be both DPU and NAVPU accretive, at +1.8% and +0.9%, respectively. Funding for the acquisitions will be via a combination of proceeds from the equity fund raising (54.6%) and borrowings (remaining 45.4%). Post-acquisition, gearing would increase from 35.5% to 36.2% on pro-forma basis. The proposed acquisition is expected to be completed by Jun21.</li></ul><figure class="editor-figure mceNonEditable"><img src="https://mail.google.com/mail/u/0?ui=2&amp;ik=03e35791bb&amp;attid=0.0.3&amp;permmsgid=msg-f:1700600348485070213&amp;th=1799bf01bc5bad85&amp;view=fimg&amp;sz=s0-l75-ft&amp;attbid=ANGjdJ8xCEqA5_st0uV0EWFnw6XJqjbimQjVryOhbTImWN4xc62NjD9zqImfTW_0CazjDP53F1403yFCvywywt4e0OVlILLThfxaZmQCMoZ5GSG0nL1XYwY11V2LtGY&amp;disp=emb" width="695" height="336" class="editor-image img-responsive" data-image-whitelisted=""></figure>

SingaporeFrasers Logistics &amp; Commercial Trust (FLT SP) to acquire six freehold properties in Germany, The Netherlands and The UK; Accretive by +1.8% to DPUFLT has proposed an acquisition of interests in three freehold logistics and industrial properties located in Germany and a logistics and industrial property in the Netherlands, from subsidiaries of Frasers Property Limited (FPL SP); and two freehold properties, known as Connexion and Blythe Valley Park, located in the UK from subsidiaries of I.M. Properties. The acquisitions are positioned to capitalise on strong logistics industry tailwinds in The UK and Germany – the two largest e-commerce markets in Europe and among top 10 globallyThe agreed property purchase price for the acquisition is approximately S$548.7m, representing a discount of ~2.5% to the aggregate appraised value of S$562.4m. The aggregate purchase consideration for the acquisition, excluding acquisition fee and other transaction costs is ~S$469.7mAs at 31Mar21, the acquisitions have a blended occupancy rate of 97.4% with a long WALB of 7.6 years, with tenants that include established third-party logistics companies and corporates, such as Hermes Germany GmbH, Gymshark Limited, Lounge Underwear Limited and BASF SE. All of the New EU Properties are 100% occupied with leases that have built-in consumer price indexationWith the acquisitions being freehold, the proportion of freehold assets in FLT’s portfolio will increase in proportion from 65.1% to 67.9% upon completion. Portfolio’s WALB will also extend from 4.4 years to 4.7 yearsThe estimated NPI yield is ~5%. On a 1H21 pro-forma basis, the acquisitions are expected to be both DPU and NAVPU accretive, at +1.8% and +0.9%, respectively. Funding for the acquisitions will be via a combination of proceeds from the equity fund raising (54.6%) and borrowings (remaining 45.4%). Post-acquisition, gearing would increase from 35.5% to 36.2% on pro-forma basis. The proposed acquisition is expected to be completed by Jun21.

ASEAN Builder's Scoop (24May21) - FLT expands further into Europe

<h2>Singapore</h2>
<h3>SREITs results in a glance (see detailed spreadsheet and calendar attached)</h3>
<table class="table table-striped">
<tbody>
<tr>
<td style="width: 136.6pt;">
<p> </p>
</td>
<td style="width: 136.55pt;">
<p>DASIN</p>
</td>
<td style="width: 136.55pt;">
<p>SASSR</p>
</td>
<td style="width: 136.55pt;">
<p>BHGREIT</p>
</td>
<td style="width: 136.55pt;">
<p>CLCT</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>Period</p>
</td>
<td style="width: 136.55pt;">
<p>1Q21</p>
</td>
<td style="width: 136.55pt;">
<p>1Q21</p>
</td>
<td style="width: 136.55pt;">
<p>1Q21</p>
</td>
<td style="width: 136.55pt;">
<p>1Q21</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>Gross Revenue (S$ m)</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed in SGD terms; RMB127.3m (+87.4% YoY); or RMB101.6m<br>if w/o Shunde Metro Mall and Tanbei Metro Mall (+51.0% YoY)</p>
</td>
<td style="width: 136.55pt;">
<p>EMA Rental Income: 34.1 (+23.4% YoY)</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>NPI (S$ m)</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
<td style="width: 136.55pt;">
<p>EMA Rental Income (Excluding straight-line adjustments): 32.3 (+27.8% YoY)</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
<td style="width: 136.55pt;">
<p>264.2 (RMB)</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>DPU (S$ c)</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
<td style="width: 136.55pt;">
<p>1.759 (+31.9% YoY)</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>NAV per Unit (S$)</p>
</td>
<td style="width: 136.55pt;">
<p>1.41 (Based on 4Q20)</p>
</td>
<td style="width: 136.55pt;">
<p>0.922</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>P/B (x)</p>
</td>
<td style="width: 136.55pt;">
<p>0.510</p>
</td>
<td style="width: 136.55pt;">
<p>1.00</p>
</td>
<td style="width: 136.55pt;">
<p>0.64 (Based on 4Q20 NAV)</p>
</td>
<td style="width: 136.55pt;">
<p>0.94 (Based on 4Q20 NAV)</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>Occupancy (%)</p>
</td>
<td style="width: 136.55pt;">
<p>96.1</p>
</td>
<td style="width: 136.55pt;">
<p>93.5</p>
</td>
<td style="width: 136.55pt;">
<p>92.1</p>
</td>
<td style="width: 136.55pt;">
<p>Retail: 94.4<br>Business Parks: 92.1</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>Reversion (%)</p>
</td>
<td style="width: 136.55pt;">
<p>NA</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>Gearing (%)</p>
</td>
<td style="width: 136.55pt;">
<p>37.2</p>
</td>
<td style="width: 136.55pt;">
<p>27.6</p>
</td>
<td style="width: 136.55pt;">
<p>35.6</p>
</td>
<td style="width: 136.55pt;">
<p>35.1</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>Cost of Debt (%)</p>
</td>
<td style="width: 136.55pt;">
<p>NA</p>
</td>
<td style="width: 136.55pt;">
<p>3.3</p>
</td>
<td style="width: 136.55pt;">
<p>3.8</p>
</td>
<td style="width: 136.55pt;">
<p>2.51</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>1 Yr Fwd Yield (%)</p>
</td>
<td style="width: 136.55pt;">
<p>6.99</p>
</td>
<td style="width: 136.55pt;">
<p>7.46</p>
</td>
<td style="width: 136.55pt;">
<p>NA</p>
</td>
<td style="width: 136.55pt;">
<p>6.21</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>Debt Hedged (%)</p>
</td>
<td style="width: 136.55pt;">
<p>NA</p>
</td>
<td style="width: 136.55pt;">
<p>Not Disclosed</p>
</td>
<td style="width: 136.55pt;">
<p>60% of offshore loans</p>
</td>
<td style="width: 136.55pt;">
<p>~70</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>Target Price</p>
</td>
<td style="width: 136.55pt;">
<p>S$0.81</p>
</td>
<td style="width: 136.55pt;">
<p>NA</p>
</td>
<td style="width: 136.55pt;">
<p>NA</p>
</td>
<td style="width: 136.55pt;">
<p>NA</p>
</td>
</tr>
<tr>
<td style="width: 136.6pt;">
<p>Rating</p>
</td>
<td style="width: 136.55pt;">
<p>BUY</p>
</td>
<td style="width: 136.55pt;">
<p>NA</p>
</td>
<td style="width: 136.55pt;">
<p>NA</p>
</td>
<td style="width: 136.55pt;">
<p>NA</p>
</td>
</tr>
</tbody>
</table>
<h3>
<a href="https://www.smartkarma.com/entities/dasin-retail-trust" target="_blank" data-smartkarma-citation="entities:23743" rel="noopener">Dasin Retail Trust (DASIN SP)</a> 1Q21 Business Updates – Revenue recovered to 94% of pre-Covid level; ARA’s strategic stake underscores GBA’s potential</h3>
<ul>
<li>1Q21 revenue (in RMB terms; on same-mall basis) increased 51.0% YoY to ~RMB101.6m. Total revenues of the four malls (IPO portfolio), namely Shiqi Metro Mall, Xiaolan Metro Mall, Ocean Metro Mall and Dasin E-Colour, has recovered to 94% of 1Q19 (pre-pandemic)’s level. Including Shunde Metro Mall and Tanbei Metro Mall (8Jul20), 1Q21 revenue (in RMB terms) increased 87.4% YoY to ~RMB127.3m</li>
<li>Overall portfolio committed occupancy stabilized at 96.1% (vs. 96.5% in 4Q20 and 96.1% in 3Q20). ~9,085sqm (12.7% of total Ocean Metro Mall NLA) of “furniture and finishing” space at the mall has been reconfigured in 4Q20 into a children’s education area, which brought a positive rental reversion of ~46%. Portfolio WALE stood at 5.9 years by NLA and 3.6 years by GRI. ~31.1% of GRI will be due for renewal in FY21E</li>
<li>Portfolio gearing stands at 37.2% (vs. 37.8% in 4Q20 and 38.5% in 3Q20). DASIN is currently negotiating with banks for extension of loans amounting to S$235.2m, which are due on 18Jul21</li>
<li>Mr. Zhang Zhencheng, Chairman and controlling shareholder of the Trustee-Manager, as well as Aqua Wealth Holdings Limited (a controlling unitholder of the Trust), had entered into a sale and purchase agreement with ARA DSRT (Holdings) and ARA Real Estate Investors 22 in pursuance of a strategic partnership with ARA Asset Management. ARA will acquire 50% of interest in the Trustee-Manager from Mr. Zhang Zhencheng, as well as ~5.0% of interest in DASIN from Aqua Wealth Holdings Limited in two separate tranches. The sale of 50% stake in Trustee-Manager and first tranche of DASIN’s units (2.5% stake) is expected to complete by May21</li>
<li>DASIN currently trades at 7.0% FY21E yield and 0.51x P/B.</li>
</ul>
<p>Comments: 1Q21 Revenue forms 23.6% of our full-year FY21E revenue (based on avg. 1Q21 RMB/SGD of 4.8727). We are encouraged by Dasin E-Colour’s strong revenue recovery (to near pre-Covid level) despite a challenging occupancy profile of 86.5% (vs. portfolio average of 96.1% and 1Q20’s 91.9%), thus translating to a robust passing rent at ~RMB125.6psm pm with +107% YoY reversions. Meanwhile, its 2 mature assets, namely Shiqi Metro Mall and Xiaolan Metro Mall (contributed to ~45.6% of 1Q21 revenue), appear to be on track for a sustained recovery – upticks in both occupancy rates and passing rents. The two newly acquired Shunde Metro Mall and Tanbei Metro Mall should provide inorganic boost to with its full-year contributions (vs. 6 mths contributions in FY20). Notwithstanding a challenging leasing market (portfolio occupancy remains below pre-Covid level of 97-98%), DASIN’s lease structure with high fixed components (fixed rent and fixed rent with built-in escalation) at 82.8%% of Mar21 GRI, offer income stability somewhat. We have a BUY rating with TP of S$0.81/Unit for DASIN.</p>
<section class="figure">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/207/030/original/image021.png?1621332221" class="editor-image img-responsive" data-smartkarma-image-id="207030"></figure>
</section>

Singapore
SREITs results in a glance (see detailed spreadsheet and calendar attached)




 


DASIN


SASSR


BHGREIT


CLCT




Period


1Q21


1Q21


1Q21


1Q21




Gross Revenue (S$ m)


Not Disclosed in SGD terms; RMB127.3m (+87.4% YoY); or RMB101.6m if w/o Shunde Metro Mall and Tanbei Metro Mall (+51.0% YoY)


EMA Rental Income: 34.1 (+23.4% YoY)


Not Disclosed


Not Disclosed




NPI (S$ m)


Not Disclosed


EMA Rental Income (Excluding straight-line adjustments): 32.3 (+27.8% YoY)


Not Disclosed


264.2 (RMB)




DPU (S$ c)


Not Disclosed


1.759 (+31.9% YoY)


Not Disclosed


Not Disclosed




NAV per Unit (S$)


1.41 (Based on 4Q20)


0.922


Not Disclosed


Not Disclosed




P/B (x)


0.510


1.00


0.64 (Based on 4Q20 NAV)


0.94 (Based on 4Q20 NAV)




Occupancy (%)


96.1


93.5


92.1


Retail: 94.4 Business Parks: 92.1




Reversion (%)


NA


Not Disclosed


Not Disclosed


Not Disclosed




Gearing (%)


37.2


27.6


35.6


35.1




Cost of Debt (%)


NA


3.3


3.8


2.51




1 Yr Fwd Yield (%)


6.99


7.46


NA


6.21




Debt Hedged (%)


NA


Not Disclosed


60% of offshore loans


~70




Target Price


S$0.81


NA


NA


NA




Rating


BUY


NA


NA


NA





Dasin Retail Trust (DASIN SP) 1Q21 Business Updates – Revenue recovered to 94% of pre-Covid level; ARA’s strategic stake underscores GBA’s potential

1Q21 revenue (in RMB terms; on same-mall basis) increased 51.0% YoY to ~RMB101.6m. Total revenues of the four malls (IPO portfolio), namely Shiqi Metro Mall, Xiaolan Metro Mall, Ocean Metro Mall and Dasin E-Colour, has recovered to 94% of 1Q19 (pre-pandemic)’s level. Including Shunde Metro Mall and Tanbei Metro Mall (8Jul20), 1Q21 revenue (in RMB terms) increased 87.4% YoY to ~RMB127.3m
Overall portfolio committed occupancy stabilized at 96.1% (vs. 96.5% in 4Q20 and 96.1% in 3Q20). ~9,085sqm (12.7% of total Ocean Metro Mall NLA) of “furniture and finishing” space at the mall has been reconfigured in 4Q20 into a children’s education area, which brought a positive rental reversion of ~46%. Portfolio WALE stood at 5.9 years by NLA and 3.6 years by GRI. ~31.1% of GRI will be due for renewal in FY21E
Portfolio gearing stands at 37.2% (vs. 37.8% in 4Q20 and 38.5% in 3Q20). DASIN is currently negotiating with banks for extension of loans amounting to S$235.2m, which are due on 18Jul21
Mr. Zhang Zhencheng, Chairman and controlling shareholder of the Trustee-Manager, as well as Aqua Wealth Holdings Limited (a controlling unitholder of the Trust), had entered into a sale and purchase agreement with ARA DSRT (Holdings) and ARA Real Estate Investors 22 in pursuance of a strategic partnership with ARA Asset Management. ARA will acquire 50% of interest in the Trustee-Manager from Mr. Zhang Zhencheng, as well as ~5.0% of interest in DASIN from Aqua Wealth Holdings Limited in two separate tranches. The sale of 50% stake in Trustee-Manager and first tranche of DASIN’s units (2.5% stake) is expected to complete by May21
DASIN currently trades at 7.0% FY21E yield and 0.51x P/B.

Comments: 1Q21 Revenue forms 23.6% of our full-year FY21E revenue (based on avg. 1Q21 RMB/SGD of 4.8727). We are encouraged by Dasin E-Colour’s strong revenue recovery (to near pre-Covid level) despite a challenging occupancy profile of 86.5% (vs. portfolio average of 96.1% and 1Q20’s 91.9%), thus translating to a robust passing rent at ~RMB125.6psm pm with +107% YoY reversions. Meanwhile, its 2 mature assets, namely Shiqi Metro Mall and Xiaolan Metro Mall (contributed to ~45.6% of 1Q21 revenue), appear to be on track for a sustained recovery – upticks in both occupancy rates and passing rents. The two newly acquired Shunde Metro Mall and Tanbei Metro Mall should provide inorganic boost to with its full-year contributions (vs. 6 mths contributions in FY20). Notwithstanding a challenging leasing market (portfolio occupancy remains below pre-Covid level of 97-98%), DASIN’s lease structure with high fixed components (fixed rent and fixed rent with built-in escalation) at 82.8%% of Mar21 GRI, offer income stability somewhat. We have a BUY rating with TP of S$0.81/Unit for DASIN.




ASEAN Builder's Scoop (18May21) - DASIN strategic investment from ARA

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/lhn-ltd" target="_blank" data-smartkarma-citation="entities:27234" rel="noopener">LHN Ltd (LHN SP)</a> 1H21 results boosted by dormitory management contracts; Continue to ride on co-living trend</h3><ul><li>1H21 revenue increased 24.9% YoY to S$64.5m, primarily due to higher contributions from Facilities Management Business (+225.5% YoY) and Logistics Services Business (+6.0% YoY), partially offset by lower revenue from Space Optimisation Business (-33.6% YoY)</li><li>Space Optimisation: Revenue fell 33.6% YoY to S$19.4m in 1H21, due to lower contributions from Industrial Properties (-42.7% YoY to S$8.8m) and Commercial Properties (-53.8% YoY to S$4.1m), partially offset by higher revenue from Residential Properties (+28.9% YoY to S$6.5m). Lower revenues from Industrial and Commercial Properties were mainly due to expiry of 6 master leases, negative reversions, downtime at 1557 Keppel Road due to AEI works and IFRS 16 impacts. Occupancy for Industrial Properties -0.9pp YoY to 89.0% in 1H21 (vs. 89.9% in 1H20), while occupancy for Commercial Properties -15.3pp YoY to 69.2% in 1H21 (vs. 84.5% in 1H20). Meanwhile, higher revenue from Residential Properties was boosted by new serviced residence in Cambodia (started in 1Q21) and increase in revenue at 1A Lutheran Road</li><li>Facilities Management: Revenue increased by 225.5% YoY to S$31.6m in 1H21, mainly due to the increase in facilities management services provided for short-term contracts under the dormitory business</li><li>Logistics Services: Revenue grew 6.0% YoY to S$13.5m in 1H21, mainly due to increase in transportation services provided from the trucking business</li><li>1H21 PATMI increased 366.3% YoY to S$14.8m on higher other income and share of results from associates and joint ventures. 1H21 dividend came in at S$0.75c per share (+300% YoY), translating to an annualised dividend yield of ~4.5%. LHN’s cash and bank balances came in at S$36.3m, while net gearing (excluding IFRS16 impact) stood at 0.31x</li><li>LHN is currently trading at 4.3% FY21E dividend yield and 5.30x FY21E P/E</li></ul><p>Comments: 1H21 Revenue and PATMI form 52.2% and 59.1% of our full-year FY21E forecasts, respectively. We have expected 1H21 results to be higher than 2H21E due to the frontloading of dormitory management contracts (expected to end in 3Q21). With the resurgence of Covid-19 cases in Singapore, we do not discount the probability of LHN renewing the dormitory management contracts. Nonetheless, we believe its string of expansion plans for co-living business should provide steady growth moving forward. In addition to the new serviced residence in Cambodia (commissioned since 1Q21), 1557 Keppel Road and Nan’an China should also start contributing in FY21E. Meanwhile, newly acquired 320 Balestier Road (16Dec20), as well as proposed acquisitions of 40 &amp; 42 Amber Road (to be completed by 8Jun21), 8 strata units at Fu Yuen Building (subject to completion of two underlying options), and 115 Geylang Road (to be completed by 21Jul21) should drive growth in FY22E and onwards. We are currently reviewing our recommendations.</p>

SingaporeLHN Ltd (LHN SP) 1H21 results boosted by dormitory management contracts; Continue to ride on co-living trend1H21 revenue increased 24.9% YoY to S$64.5m, primarily due to higher contributions from Facilities Management Business (+225.5% YoY) and Logistics Services Business (+6.0% YoY), partially offset by lower revenue from Space Optimisation Business (-33.6% YoY)Space Optimisation: Revenue fell 33.6% YoY to S$19.4m in 1H21, due to lower contributions from Industrial Properties (-42.7% YoY to S$8.8m) and Commercial Properties (-53.8% YoY to S$4.1m), partially offset by higher revenue from Residential Properties (+28.9% YoY to S$6.5m). Lower revenues from Industrial and Commercial Properties were mainly due to expiry of 6 master leases, negative reversions, downtime at 1557 Keppel Road due to AEI works and IFRS 16 impacts. Occupancy for Industrial Properties -0.9pp YoY to 89.0% in 1H21 (vs. 89.9% in 1H20), while occupancy for Commercial Properties -15.3pp YoY to 69.2% in 1H21 (vs. 84.5% in 1H20). Meanwhile, higher revenue from Residential Properties was boosted by new serviced residence in Cambodia (started in 1Q21) and increase in revenue at 1A Lutheran RoadFacilities Management: Revenue increased by 225.5% YoY to S$31.6m in 1H21, mainly due to the increase in facilities management services provided for short-term contracts under the dormitory businessLogistics Services: Revenue grew 6.0% YoY to S$13.5m in 1H21, mainly due to increase in transportation services provided from the trucking business1H21 PATMI increased 366.3% YoY to S$14.8m on higher other income and share of results from associates and joint ventures. 1H21 dividend came in at S$0.75c per share (+300% YoY), translating to an annualised dividend yield of ~4.5%. LHN’s cash and bank balances came in at S$36.3m, while net gearing (excluding IFRS16 impact) stood at 0.31xLHN is currently trading at 4.3% FY21E dividend yield and 5.30x FY21E P/EComments: 1H21 Revenue and PATMI form 52.2% and 59.1% of our full-year FY21E forecasts, respectively. We have expected 1H21 results to be higher than 2H21E due to the frontloading of dormitory management contracts (expected to end in 3Q21). With the resurgence of Covid-19 cases in Singapore, we do not discount the probability of LHN renewing the dormitory management contracts. Nonetheless, we believe its string of expansion plans for co-living business should provide steady growth moving forward. In addition to the new serviced residence in Cambodia (commissioned since 1Q21), 1557 Keppel Road and Nan’an China should also start contributing in FY21E. Meanwhile, newly acquired 320 Balestier Road (16Dec20), as well as proposed acquisitions of 40 &amp; 42 Amber Road (to be completed by 8Jun21), 8 strata units at Fu Yuen Building (subject to completion of two underlying options), and 115 Geylang Road (to be completed by 21Jul21) should drive growth in FY22E and onwards. We are currently reviewing our recommendations.

ASEAN Builder's Scoop (14May21) - LHN Robust 1H21, Boosted by Mgmt Contracts

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<div><p>Monde Nissin (MNC), a food manufacturer in the Philippines, aims to raise around US$1bn in its Philippines IPO.</p></div><div><p>It has two main businesses: Asia-Pacific Branded Food and Beverage Business (BFB), which sells instant noodles, biscuits and other products, and meat alternative (MA) business which includes Quorn and Cauldron meat alternatives brands.</p></div><div><p>MNC has a high market share in the Philippines in the instant noodles and biscuits segment along with a few other categories as well. Quorn as well has a strong lead over its next largest peers in the Chicken alternative meat segment in the grocery channel. </p></div><div>
<p>In our previous notes, </p>
<ul>
<li>
<a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-the-positives-high-market-share" target="_blank" rel="noopener">Monde Nissin Pre-IPO - The Positives - High Market Share</a>, and <a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-the-negatives-high-debt-div-payments-floundering-ma" target="_blank" rel="noopener">Monde Nissin Pre-IPO - The Negatives - High Debt, Div Payments, Floundering MA</a> we spoke about the company background and its past performance.</li>
<li>In <a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-peer-comparison-for-food-business" target="_blank" rel="noopener">Monde Nissin Pre-IPO - Peer Comparison for Food Business</a> and <a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-peer-comparison-for-meat-alternative-business" target="_blank" rel="noopener">Monde Nissin Pre-IPO - Peer Comparison for Meat Alternative Business</a> we compared the two business with their regional and global peers.</li>
<li>In <a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-thoughts-on-valuation" target="_blank" rel="noopener">Monde Nissin Pre-IPO - Thoughts on Valuation</a> and <a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-not-cheap-but-sensible" target="_blank" rel="noopener">Monde Nissin Pre-IPO - Not Cheap but Sensible</a> we discussed our thoughts on valuation. </li>
</ul>
</div><div><p>In this note, we’ll talk about the final pricing and other dynamics.</p></div>

Monde Nissin (MNC), a food manufacturer in the Philippines, aims to raise around US$1bn in its Philippines IPO.It has two main businesses: Asia-Pacific Branded Food and Beverage Business (BFB), which sells instant noodles, biscuits and other products, and meat alternative (MA) business which includes Quorn and Cauldron meat alternatives brands.MNC has a high market share in the Philippines in the instant noodles and biscuits segment along with a few other categories as well. Quorn as well has a strong lead over its next largest peers in the Chicken alternative meat segment in the grocery channel. 
In our previous notes, 


Monde Nissin Pre-IPO - The Positives - High Market Share, and Monde Nissin Pre-IPO - The Negatives - High Debt, Div Payments, Floundering MA we spoke about the company background and its past performance.
In Monde Nissin Pre-IPO - Peer Comparison for Food Business and Monde Nissin Pre-IPO - Peer Comparison for Meat Alternative Business we compared the two business with their regional and global peers.
In Monde Nissin Pre-IPO - Thoughts on Valuation and Monde Nissin Pre-IPO - Not Cheap but Sensible we discussed our thoughts on valuation. 

In this note, we’ll talk about the final pricing and other dynamics.

Monde Nissin IPO - Might Not Be a High Flyer but Worth the Ride, Quorn Tastes Good

Philippines

Robinsons Land Corporation invests in and develops real estate. The Company develops residential housing and commercial real estate and operates shopping malls and hotels.

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Robinsons Land Co (RLC PM)

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Monde Nissin IPO - Might Not Be a High Flyer but Worth the Ride, Quorn Tastes Good

Monde Nissin aims to raise around US$1bn in its Philippines IPO. It has two main businesses: Food and Beverage, which sells instant noodles, and...

Sumeet Singh

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