Broker's take

Compiled by Stephanie Luo,

The Business Times

SINGAPORE EXCHANGE LTD | NEUTRAL
APRIL 21 CLOSE: S$7.47
TARGET PRICE: S$7.45

Phillip Securities Research (Singapore), April 21

Excluding one-off loss of S$4 million from the disposal of shares of the Bombay Stock Exchange, Q3 FY06/17 Patmi (profit after tax and minority interests) would have decreased 2 per cent y-o-y (year-on-year) to S$87 million, in line with our expectations of S$83 million.

Operating expenses decreased because of lower processing and royalties expense and lower professional fees.

Total revenue was lower because of weaker y-o-y derivatives trading volume.

ASCOTT RESIDENCE TRUST | HOLD
APRIL 21 CLOSE: S$1.09
TARGET PRICE: S$1.105

OCBC Investment Research, April 21

Ascott Residence Trust's (ART) Q1 17 revenue increased 5.4 per cent yoy to S$111.3 million - mainly due to an additional revenue of S$5.8 million from the acquisition of Sheraton Tribeca New York last year - which was partially offset by the decline in revenue of S$1.8 million from existing properties (mainly Singapore and the UK).

Gross profit fell 2.9 per cent y-o-y to S$47.2 million despite the increase in revenue largely due to the recognition of operating lease expense on a straight-line basis in the United States.

JAPFA LTD | BUY
APRIL 21 CLOSE: S$0.63
TARGET PRICE: S$1

DBS Group Research, April 21

Japfa Ltd (JAP) is involved in all major animal proteins across different geographies in Asia's fast-growing regions. In our report, we adjusted FY17F/18F earnings to impute lower expected contribution from subsidiary Japfa Comfeed Indonesia (JPFA) due to weaker-than-expected Q1 17 day-old-chick (DOC) and live broiler prices.

We adjusted our forecasts to account for lower expected contribution from 51 per cent-owned JPFA (mainly from breeding and commercial farm segments - while feed contribution was raised slightly).

JAP's share price is driven by DOC, broiler and swine prices as well as China raw milk price movements and the USD/IDR exchange rate.

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