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CGS CIMB |
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Cache Logistics Trust (CACHE SP) Slow Quarter
In line 2Q19 DPU of SGD1.32cts was down 6.9% YoY, largely due to transitory pressures. 6M19 DPU was in line at 47% of both consensus and our estimates. Fundamentals remain sound, given high pre-committed occupancy in Singapore now at 92.6%, and with its DPU growth profile now backed by rising Australian contributions. Looking ahead, we see NPIs recovering as Singapore rents stabilise and leasing demand picks up. Valuations are compelling at 7.7% dividend yields; medium term DPU recovery a catalyst. We raised estimates by 1-2% to factor in its Australian deal, and raised our DDM-based TP to SGD0.90 (COE: 7.9%, LTG: 1.5%).
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Mapletree Commercial Trust A good start
■ MCT’s 1QFY3/20 DPU of 2.3 Scts was in line at 25% of our full-year forecast. ■ Vivocity continued to deliver strong performance while its office segment continued to see strong demand. ■ Maintain Add with an unchanged DDM-based TP of S$2.24.
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UOB KAYHIAN |
CGS CIMB |
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Wilmar International (WIL SP) 2Q19 Results Preview: No Suprises; Market Focusing More On YKA Listing
Wilmar is scheduled to report 2Q19 results on 13 Aug 19. 2Q is seasonally the weakest quarter as consumer pack sales are low and also a non-milling season for sugar. 2Q19 results are likely to be a non-event as investors are focusing more on YKA listing. We are expecting core net profit of US$235m-255m (1Q19: US$250m). Maintain BUY with a higher target price of S$4.50 after changing our SOTP valuation to value-blended 23x PE for China operation and 11x PE for non-China operations.
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ST Engineering How high can it go?
■ STE secured c.$1.5bn of new aero and electronics contracts in 2Q19. This is slightly lower than the S$2.1bn in 1Q19. ■ In total, however, 2Q19 contracts were higher at S$2.5bn including the S$1bn Polar Security Cutter marine contract announced earlier on 24 Apr 2019. ■ Maintain Add and TP of S$4.43 but we removed STE from our High Conviction list given its outperformance YTD and 52-week high.
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Check out our compilation of Target Prices
