| UOB KAYHIAN |
PHILLIP SECURITIES |
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Mapletree Logistics Trust (MLT SP) Less Affected By COVID-19 Outbreak Due To Orientation Towards Domestic Consumption And E-commerce; Upgrade to BUY
MLT is less affected by the COVID-19 outbreak due to its orientation towards domestic consumption and e-commerce, which accounted for 70-75% and 20-25% of its business respectively. The exposure to domestic consumption and e-commerce is even higher at 85% and 50-55% for its China portfolio. MLT is a potential candidate for inclusion in the MSCI Singapore Index. We would not rule out a merger with sister S-REIT MINT over the longer term. Upgrade to BUY with a higher target price of S$2.08.
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JEP Holdings Ltd Next phase is revenue growth SINGAPORE | TECHNOLOGY MANUFACTURING| 2H19 RESULTS
FY19 PATMI more than tripled to the S$6.5mn, the highest on record. Results were below our forecast. We were too aggressive on our margin and revenue assumptions. The turnaround came from new management realigning the whole cost structure of the company and improving pricing. Maintain BUY. We are raising our target price to S$0.26 (prev. S$0.20). After major cost restructuring, we believe the next phase of growth will be expanding revenues and new customers. The aerospace supply chain is looking to outsource more from Asia but this will require time. Our higher target price is due to valuation expansion closer to industry peers. After the major turnaround, we expect more stable earnings which deserve higher valuations, in our opinion. We moved our target valuations from 10x to 14x peer and closer to industry peer.
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| PHILLIP SECURITIES | RHB |
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CapitaLand Limited Hyperdrive – the new normal SINGAPORE | REAL ESTATE | FY19 RESULTS
FY19 revenue came in broadly in line at 105.6% of our estimates while DPS came in flat, meeting our 12cents forecast A strong set of results - achieved ROE of 10% after 10 years, due to higher PATMI across all segments - operating PATMI (+21%), portfolio gains (+25%) and revaluation gains (19%) Deleveraging achieved ahead of target, S$13bn headroom from cash and undrawn debt facilities to be deployed opportunistically. Maintain BUY with higher TP of S$4.20.
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Hyphens Pharma (HYP SP) Near-Term Outlook Uncertain Due To COVID-19
Maintain BUY, new DCF-based SGD0.27 TP from SGD0.25, 17% upside plus c.5% FY20F yield. Hyphens Pharma’s 4Q19 NPAT of SGD1.7m (+104.5% YoY) took FY19 NPAT to SGD6.5m (+20.7% YoY), which exceeded our full-year forecast by 6.5%. DPS of SGD0.01 was also better than its guidance of SG0.0055. We cut FY20-21F earnings by 7% and 9% on near-term uncertainties brought upon by the COVID-19 outbreak, but maintain FY22 estimates, as we remain positive on the medium to long-term outlook of the company.
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