| MAYBANK KIM ENG |
UOB KAYHIAN |
|
Mapletree Industrial Trust (MINT SP) Upping Stability And Growth
Deal strengthens AUM profile MINT has gained hi-tech growth momentum with its second overseas deal. Its USD1.4b (SGD1.9b) investment in 13 data centre assets in North America, via a 50-50 JV with its sponsor, lifts freehold properties from 24.0% to 37.9% of its AUM, and increases DPU visibility. We estimate DPUs could rise 3.0% in FY21, as its hi-tech AUM contribution grows from 43.5% to 52.9%. Maintain BUY and we raise our DDM-based TP to SGD2.50. We favour MINT for its growth fundamentals, as DPUs are supported by recovering leasing demand in Singapore and a more resilient portfolio given its hi-tech asset investments and overseas diversification.
|
ST Engineering (STE SP) Acquisition Of Glowlink Should Strengthen STE’s Satcom Capabilities
We are enthused by STE’s latest acquisition. While the absolute amount is relatively small, it is expected to complement not just the S$383m Newtec acquisition, but its own industry positioning in aeronautical and maritime Satcom applications. STE’s stock price has declined by 10% post 2Q19 results. We recommend investors add positions at current levels. Upgrade to BUY. Target: S$4.34.
|
|
DBS VICKERS |
RHB |
|
Mapletree Logistics Trust (MLT SP) : BUY One small step in Melbourne, one giant leap for MLT
• Forward purchase of a property in Melbourne a first for MLT • Minimal impact on numbers; but significant implications on REIT’s strategic intent in Australia • Successful leasing strategy will prompt MLT to look at a broader investment universe within Australia, which imply higher returns over time
|
Sembcorp Industries (SCI SP) Energy Business To Boost Earnings; BUY
BUY with SGD2.68 TP, 21% upside plus 2% yield. Sembcorp Industries’ profits are largely dependent on the energy business, which looks positive from the India power market outlook. We forecast 61%-owned subsidiary Sembcorp Marine (SMM SP, BUY, TP: SGD1.63) to revert to a FY20 profit from a FY19 loss on the pickup of new orders. The steadily growing earnings from its urban business is another positive. Catalyst to its share price includes news flow on order wins by Sembcorp Marine.
|
Check out our compilation of Target Prices
