| RHB |
MAYBANK KIM ENG |
|
Cache Logistics Trust (CACHE SP) A New Beginning; BUY
Maintain BUY with a reduced TP of SGD 0.74 from SGD 0.80, c.16% upside and c.9% yield. The entry of Logos as Cache’s new manager and major shareholder provides much needed ammunition in terms of strengthening its operational capabilities and growth potential. We remain confident on the logistics sectors’ long-term potential in the region, despite near-term uncertainties from the COVID-19 outbreak. We see value emerging at current levels, with stock offering a 9% yield and trading at 1.1x P/BV.
|
Singapore Semicon Equipment Shaken, not stirred
BUY the dip; milestones intact Observations since our sector piece “Milestones on track” on 10-Feb support our constructive view on AEM and UMS. AEM’s key customer Intel’s operations are “relatively normal”, while Lam Research, the closest competitor of UMS’ key customer Applied Materials (AMAT), sees no basis to change its optimistic view of 2020. UMS is trading on an attractive 6% FY20E yield, and AEM, which we view as a potential M&A play, is trading on 4.7x FY20E EV/EBITDA (Cohu bought Xcerra for 7-8x forward EV/EBITDA).
|
| CGS CIMB | UOB KAYHIAN |
|
Jardine Matheson Holdings Ltd FY19 in line with expectations
■ FY19 underlying net profit formed 97% of our forecast, within expectations. ■ The group expects the short-term outlook to be challenging given the Covid19 outbreak. ■ We downgrade our rating from Add to Hold.
|
Sasseur REIT (SASSR SP) Staying Vigilant Amid COVID-19 Outbreak
Sasseur REIT will be re-opening its Kunming outlet mall on 11 Mar 19 as it has obtained approval from local authorities, while its remaining three outlet malls remain temporarily closed as a precautionary measure against the COVID-19 outbreak. In response to these unexpected closures, management has undertaken strategic initiatives to grow online sales through its e-commerce portal. Distribution yield remains attractive at 7.6% even after cutting our 2020F DPU forecast by 13%. Maintain BUY with a lower target price of S$0.92.
|
Check out our compilation of Target Prices
