TOKYO STAR OPTICAL STYLING EVENT (150115)

Tokyo Star Optical, an optical concept store, was first established in 2004 in Tokyo, Japan. Currently, Tokyo Star Optical has had 14 concept stores all over Asia since its inception. 13 of its stores are located in major shopping malls such as Aeon, all over Tokyo and its 14th store is located in CityLink Mall, Singapore in November 2014 - the first flagship store outside Japan.

Adopting a 3-step process, customers are able to get their glasses with a fast processing time of 15 minutes. It begins when the customers choose their desired frame, followed by the lens and lastly, the case. Should customers seeking expert opinion, they can consult dedicated Tokyo Star Optical’s eyewear advisors for professional advice or assessment. The eyewear advisors guides customers through every step of the process - selecting eyewear that is most suitable to the occasion, meeting customers’ needs and functionality, enhancing their strong features, complementing their overall look and style preference, and lastly comfort and fit.

We were given a short presentation briefing to know more about how to make trendy eyewear an everyday affair. The trend of prescription glasses becoming a part of face dressing gained popularity over the last few years as Korean and Japanese artistes added funky spectacle frames to their wardrobes. The look caught on, even inspiring the ones with perfect eyesight to don eyeglasses without power, just to join the modish crowd.

I picked my hipster shades with korean frame and prescription lens of mild myopia and average astigmatism. Providing me with the professional advice and eye assessment is the friendly assistant manager, Mr Simon Khaw. (on the right)

Currently there are a few promotions going on due to the new launch of the store. Click HERE for the promotions!

Tokyo Star Optical is located at 1 Raffles Link, #B1-31 CityLink Mall, Singapore 039393 and is open daily from 11am to 9pm. Tel: (+65) 6532 0071

Tokyo Star Optical is also found on:-
-­‐ Facebook page: http://www.facebook.com/tokyostaroptical
-­‐ Instagram: @tokyostaroptical

OUE Hospitality Trust - Looking past near-term volatility

What Happened 
Recent hotel statistics released by Singapore Tourism Board (STB) point to continued weakness in the hotel segment in Singapore for 11M14, with RevPAR dipping by 1% yoy and occupancy easing by 0.8%. RevPAR in Oct 14 and Nov 14 remained weak with the luxury segment reporting -1.8% and -2.9% yoy respectively while upscale hotel segment for the same period reported -3.2% and +0.6% yoy respectively. 

What We Think 
Together with the continued volatility in the Indonesian rupiah in Dec 14, the data suggest slightly weaker 4Q14 results for OUE-HT which historically derives c.30% of its business from Indonesian customers. That said, we believe that OUE-HT is well-positioned to benefit from the stronger hospitality outlook for 2015 as 1) visitor arrivals are expected to increase by 2-4% in 2015, 2) Singapore is scheduled to host more major international sporting events including the Southeast Asian (SEA) Games and 3) the government is intensifying efforts to revitalise Orchard Road and turn it into a vibrant lifestyle destination. Given these efforts and additional income from the recently proposed acquisition of the c.S$495m Crowne Plaza Hotel at Changi Airport (CPCA), we believe that OUE-HT’s 2015 outlook is more sanguine than the year before. Assuming that the acquisition is completed with the issuance of S$115m worth of new units in FY15, the leverage ratio is expected to rise to 35.7% in FY15 and 41.4% in FY16 as the two phases of Crowne Plaza are acquired. This in turn is expected to boost DPU marginally by 0.1% in FY15 and 2.5% in FY16. 

What You Should Do 
Despite potential near-term earnings volatility, we remain bullish on OUE-HT given the stronger outlook, coupled with additional income from the acquisition. We maintain our Add rating as we continue to see value in this REIT, which currently offers 7.8% dividend yield vs. its peers’ 7.3% and trades at 1.0x P/BV.