Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

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Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Asia’s leading multi-asset exchange

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up

<p><i><b>These equity research reports are not written by the SGX.</b> SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</i></p><p>COMPANY UPDATE</p>
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<h2>Sasseur REIT (SASSR SP)</h2>
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<p><strong>Staying Vigilant Amid COVID-19 Outbreak</strong></p>
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<p><strong>Sasseur REIT will be re-opening its Kunming outlet mall on 11 Mar 19 as it has obtained approval from local authorities, while its remaining three outlet malls remain temporarily closed as a precautionary measure against the COVID-19 outbreak. In response to these unexpected closures, management has undertaken strategic initiatives to grow online sales through its e-commerce portal. Distribution yield remains attractive at 8.0% even after cutting our 2020F DPU forecast by 13%. Maintain BUY with a lower target price of S$0.92.</strong></p>
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<p>WHAT’S NEW</p>
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<p><strong>Kunming outlet mall slated for re-opening on 11 March.</strong> Sasseur REIT has obtained approval from authorities in Kunming to re-open its outlet, and will continue to enforce preventive measures such as the frequent sanitising of mall facilities to ensure smooth operations. The recent spread of the COVID-19 virus in China has prompted Sasseur REIT to implement temporary closure of all four of its outlet malls; Chongqing and Bishan have been closed since 26 Jan 20; Hefei and Kunming have been closed since 27 Jan 20. These actions were undertaken to prevent the spread of the coronavirus and aligns with management’s stance on corporate social responsibility towards all stakeholders. Management aims to re-open the remaining three outlets as soon as possible.</p>
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<p><strong>Reopening of five of seven sponsor malls.</strong> On a positive note, sponsor Sasseur Holdings’<br>five outlet malls in Guiyang, Nanjing, Changchun, Lanzhou and Xi’an have re-opened as of 9<br>Mar 20 after obtaining approval from the respective provincial authorities. Management has<br>also indicated that reopening dates for the remaining two outlet malls should be in weeks rather than months as new COVID-19 cases within China have been falling rapidly. A healthy rebound in footfall and sales across all outlets is expected as the widespread work stoppages and corresponding loss of income should drive consumer demand for discounted products.</p>
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<p><strong>Exploring AEI opportunities for Chongqing outlet.</strong> The Chongqing outlet mall is the<br>portfolio’s most mature asset, having commenced operations since 2008. As such,<br>management believes that this is an opportune time to rejuvenate the outlet and reposition it as an exciting lifestyle and shopping destination for both locals and tourists. If feasible, management intends to begin AEI works as soon as 2H20.</p>
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These equity research reports are not written by the SGX. SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.COMPANY UPDATE

Sasseur REIT (SASSR SP)

Staying Vigilant Amid COVID-19 Outbreak

Sasseur REIT will be re-opening its Kunming outlet mall on 11 Mar 19 as it has obtained approval from local authorities, while its remaining three outlet malls remain temporarily closed as a precautionary measure against the COVID-19 outbreak. In response to these unexpected closures, management has undertaken strategic initiatives to grow online sales through its e-commerce portal. Distribution yield remains attractive at 8.0% even after cutting our 2020F DPU forecast by 13%. Maintain BUY with a lower target price of S$0.92.

WHAT’S NEW

Kunming outlet mall slated for re-opening on 11 March. Sasseur REIT has obtained approval from authorities in Kunming to re-open its outlet, and will continue to enforce preventive measures such as the frequent sanitising of mall facilities to ensure smooth operations. The recent spread of the COVID-19 virus in China has prompted Sasseur REIT to implement temporary closure of all four of its outlet malls; Chongqing and Bishan have been closed since 26 Jan 20; Hefei and Kunming have been closed since 27 Jan 20. These actions were undertaken to prevent the spread of the coronavirus and aligns with management’s stance on corporate social responsibility towards all stakeholders. Management aims to re-open the remaining three outlets as soon as possible.

Reopening of five of seven sponsor malls. On a positive note, sponsor Sasseur Holdings’ five outlet malls in Guiyang, Nanjing, Changchun, Lanzhou and Xi’an have re-opened as of 9 Mar 20 after obtaining approval from the respective provincial authorities. Management has also indicated that reopening dates for the remaining two outlet malls should be in weeks rather than months as new COVID-19 cases within China have been falling rapidly. A healthy rebound in footfall and sales across all outlets is expected as the widespread work stoppages and corresponding loss of income should drive consumer demand for discounted products.

Exploring AEI opportunities for Chongqing outlet. The Chongqing outlet mall is the portfolio’s most mature asset, having commenced operations since 2008. As such, management believes that this is an opportune time to rejuvenate the outlet and reposition it as an exciting lifestyle and shopping destination for both locals and tourists. If feasible, management intends to begin AEI works as soon as 2H20.








Non-SGX Report: Sasseur REIT (SASSR SP): Staying Vigilant Amid COVID-19 Outbreak