| RHB |
MAYBANK KIM ENG |
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Sheng Siong More Good News Than Bad; Reiterate BUY
Reiterate BUY with high end of consensus TP of SGD1.23 TP, 18% upside, plus 4% yield. Sheng Siong remains one of our Preferred Picks. 1Q19 results met consensus but slightly missed our expectations due to the lower-than-expected gross margin. We trim FY19F-21F PATMI by 1-4% on delays in the completion of the distribution centre extension, and accounting changes in SFRS 16, which we forecast to have c.1-2% negative impact to its bottomline.
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Ascendas REIT (AREIT SP) Growth From A Broader Base
4Q19 in line w/MKE, consensus; Sector top pick AREIT’s DPU increased 1.2% YoY in 4Q19, while headline DPU of SGD4.14cts rose 6.1% YoY from a capital distribution. DPU growth was driven by contributions from its Australian and UK acquisitions, and better Singapore occupancies with the completed 20 Tuas Ave redevelopment. Our DPUs are slightly changed (-1%) and our DDM-based TP increases 3% to SGD3.20 as we roll forward to FY20 (COE: 7.1%, LTG: 2.0%). We see risk of near-term profit taking given the strong share price performance but we remain positive longer-term with the shares offering a total return of 12% in FY20E (DPU 5.5% and TP upside 6%).
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| RHB | CGS CIMB |
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DBS (DBS SP) On Track For Further NIM Expansion; Still BUY
Keep BUY with a higher SGD30.80 TP from SGD29.60 based on 1.50x 2020F P/BV, 12% upside plus 4.4% FY19F yield. Our long-term ROE assumption of 13.8% vs 1Q19 and 1Q18’s 14% and 13.1% is premised on further NIM expansion in 2Q19 from 1Q19’s 1.88% plus digitisation-driven cost efficiencies. DBS’ 1Q19 results are in line with our expectations. This report is an update post the bank’s analyst teleconference.
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ComfortDelGro Hitting back at competition with new scheme
■ New voluntary fare-sharing scheme could entice flexi-hours cabbies, putting CD on a more equal footing with ride-hailing platforms. ■ First acquisition in 2019 made; expect more M&As ahead. ■ Maintain Add with a higher TP of S$2.88.
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Check out our compilation of Target Prices
