| RHB |
CGS CIMB |
|
CSE Global (CSE SP) Temporary Disruption; Still BUY
BUY, new SGD0.54 TP from SGD0.73, 42% upside plus c.8% FY20F yield. We cut FY20-22F earnings by 21%,14%, and 7%, and switch our valuation method to P/E in light of the current environment. Our TP is at +1SD from the last 12 months’ average forward FY20 P/E. CSE Global’s business should be impacted somewhat in 2Q20, due to the COVID-19 pandemic and the freefall in oil prices. As such, revenue recognition could decelerate on project delays and a lower order intake.
|
Singapore Press Holdings Stuck at home
■ 1HFY8/20 PATMI of S$77.6m (-9.3% yoy) was largely in line; we expect further downside in 2HFY20F and possibly FY21F if Covid-19 prolongs. ■ Interim DPS cut to 1.5Scts (1H19: 5.5Scts). M&As put on hold, and there is potential impairment risk to its S$6.4bn worth of investment properties. ■ Our Hold call is supported by 5% FY20F dividend yield and trading valuation below book (0.7x FY20F P/BV). Catalyst: faster recovery from Covid-19.
|
|
MAYBANK KIM ENG |
DBS VICKERS |
|
Singapore Banks …And Relax
MAS measures may improve dividend visibility The MAS has announced several relaxing measures that will help widen capital buffers & liquidity as well as lower credit charge volatility. It has also suspended/postponed some industry reforms and eased onsite supervision requirements. Even prior to this relaxation, the domesic banks were well capitalized and had high levels of liquidity. We believe these measures are more of a supportive signal for the sector to keep liquidity flowing, while also providing some clarity to the markets in terms of credit charges. Additonally, the regulator’s explicit clarification that it sees no need to restrict dividends, supports the sector’s strong dividend visibility and defensiveness regionally. OCBC and UOB are our preferred picks.
|
Mapletree Logistics Trust
Essential and resilient A safe harbour, upgrade to BUY, TP S$1.85. We see value emerging for Mapletree Logistics Trust (MLT) after its recent share price correction, bringing valuations to a more palatable 1.3x P/NAV, yield of 5.2%. We remain comfortable that MLT’s pure logistics exposure is least impacted by the COVID-19 outbreak and Singapore’s tightening restrictions on workspaces (logistics is less impacted) will imply that its earnings profile will remain more stable than peers. We upgrade our call to BUY and adjust our TP to S$1.85.
|
Check out our compilation of Target Prices
