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UOB KAYHIAN |
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Japfa Ltd Back on higher ground
■ We turn positive on JAP as we believe the recent recovery in both its Indonesian poultry and swine fattening divisions is sustainable. ■ A potential benign poultry supply industry could likely keep prices robust for longer and benefit PT Japfa Comfeed. ■ Its swine fattening division could also stay profitable as current ASP uptick appears to be due to domestic consumption compared to external influences previously. ■ Upgrade from Reduce to Add with a higher SOP-based TP of S$0.80 due to improved forward prospects. This report marks a transfer of analyst coverage.
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CSE Global (CSE SP) Better Outlook Backed By A Commendable 6.3% Dividend Yield.
During our recent meeting with CSE, management expressed optimism in CSE’s business outlook. As market fundamentals continue to evolve favourably for CSE’s infrastructure and O&G businesses, we believe there is greater scope for new order wins. With an attractive dividend yield of 6.3% and ability to sustain profits, CSE is an excellent proxy to the oil price recovery. We re-iterate BUY and raise our target price by 1.7% to S$0.59, after raising our 2019-20 forecasts by 3.0-6.4%.
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| OCBC | PHILLIP |
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Singapore Press Holdings: Off to school! SPH announced that it has entered into a SPA with Unite Students to acquire a portfolio of purpose-built student accommodation in the United Kingdom (UK) for a cash consideration of ~GBP 180.5m, subject to adjustments. The portfolio will comprise of 10 freehold assets and 4 leasehold assets, with a total capacity of 3,436 beds for student accommodation. According to Unite Students, this transaction would result in a net initial yield of 6.3%. As highlighted in our previous report, we have been expecting SPH to explore the real estate asset management market in the UK, specifically in assets within the education space to diversify its income streams. In our opinion, local demand for student accommodation in the UK should generally be robust. However, we think that there might be some short-term supply issues that the group might need to contend with, as well as the uncertainty regarding EU demand for British higher education as a result of Brexit. We maintain our estimates, HOLD rating and fair value of S$2.52 for now.
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800 Super Holdings Ltd Management raised their stake
SINGAPORE | INDUSTRIALS | UPDATE Largest shareholder now controls 67.63% of the Company Management controls the largest shareholder Previous time Management bought shares in the Company was February 2016 Expect to see a price floor at $0.82
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DBS VICKERS |
DBS VICKERS |
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CapitaLand Mall Trust Soaring above the competition
TP raised to S$2.45 as CMT returns to growth! Anchored by resilient yields, CapitaLand Mall Trust (CMT) has been a safe harbour for investors and is starting to emerge as a growth play. As the retail sector bottoms out, 2019 could be a chance for CMT to shine as full contributions from Westgate and the return of Funan takes DPU back on a multi-year growth path. CMT’s share price should re-rate as earnings growth returns to an upward trajectory of c.4% p.a. (vs SREIT’s average of c.2%). We have raised our TP for CMT to S$2.45 to reflect the higher growth outlook and earnings base. Maintain BUY!
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Singapore Property
Jadescape hits the market in two weeks, will buyers bite? • Jadescape preview launch lures a strong crowd • A variety of home types to attract a wider addressable buyer pool • Location near good schools and MRT station a key attribute • Potential margins of 20% if assumed price of S$1,500-1,600 psf is achieved
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Check out our compilation of Target Prices