BRC Asia (BRC SP)
Slowdown Expected Although Robust Outlook In The Longer Term Remains
The current lockdown in Malaysia adds a further strain as construction materials such as precast components are imported from Malaysia, impacting local supply that may run short. A slowdown is expected from the effects of the COVID-19 pandemic due to project delays. BRC’s prospects remain robust with the industry recovery intact in the longer term. We opine that public projects will likely come back into the fray once the virus outbreak subsides. Maintain BUY with a lower target price of S$1.65.
Raffles Medical Group
Foreign patients staying at home
■ We expect intensifying global travel restrictions and MOH’s recent advisory to private healthcare sector on foreign patients to impact RFMD’s patient load.
■ We cut our FY20-22F EPS by 7.8-12.4% to reflect the loss of medical tourism, and possible macro slowdown. RFMD remains a long-term Add.
■ Current price level offers better risk-reward, with continual share purchases by key stakeholders as near-term share price support.
Manulife US Real Estate Inv (MUST SP) : BUY
Stronger than you think
• MUST’s management believes its portfolio, comprising Class A/trophy assets, strong top 10 tenant profile and a good set of credit metrics, is stable and resilient to weather the short-term pain and potential recession
• While it is still early stages of the COVID-19 outbreak in the US, management expects leasing activities and the transaction market to slow down as tenants/buyers/sellers take a wait-and-see approach
• Management does not expect refinancing risks at the moment and credit metrics still provide some debt headroom
• While valuations look attractive at price levels between 55 US Scts and 61 US Scts, share price could remain volatile as it trades in tandem with the US market/and sentiment on its economy
Check out our compilation of Target Prices