RHT Health Trust | Hold
Target price: 81 cents
June 14 close: 76.5 cents
Broker: CGS-CIMB, June 13
The execution of the master purchase agreement with Fortis Healthcare for the disposal of the entire asset portfolio of RHT Health Trust is still ongoing, subject to unit holders' approval at an EGM.
The final consideration for RHT's asset portfolio is 46 billion rupees (S$913 million). Based on the earlier rupee/ Singdollar exchange rate of 48.5 and taking into account repayment of RHT's external borrowings of $237.9 million and settlement of transaction costs of $15.8 million, the net proceeds would work out to be 86 cents/unit. We lower our FY19/20 DPU forecast by 10 per cent/8.5 per cent.
Singapore telcos | Market weight maintained
Broker: UOB KayHian, June 12
Maintain our defensive stance on the telco sector given the impending entry of TPG as the fourth mobile operator. Competition has intensified even before TPG launches its mobile services on a commercial basis by end-2018. New entrants - Zero1, Circles.Life, MyRepublic - have been trying to outdo one another.
Singtel | Buy
Target price: $4.22
June 12 close: $3.24
Singtel provides a defensive shelter due to its geographical diversification. Its mobile business here accounts for only 7 per cent of group revenue if we include its proportionate share of associates' revenue.
M1 | Sell
Target price: $1.60
June 12 close: $1.68
M1's share price has corrected only 5.6 per cent year-to-date. The stock is vulnerable as its mobile business here accounted for 76.3 per cent of service revenue in Q4 2017.
StarHub | Hold
Target price: $1.98
June 12 close: $1.86
StarHub's share price has corrected 35.4 per cent year-to-date. Its mobile business here accounted for 52.6 per cent of service revenue in Q1 2018.