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RHB |
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YOMA STRATEGIC HOLDINGS LTD. Acquiring more Money SINGAPORE | REAL ESTATE | UPDATE
Acquisition of Telenor’s 34.2% stake in Wave is at an attractive price of $76.5mn, a 20% discount to our projected valuation of Wave. Yoma will become the controlling shareholder of Wave through Wave Holdco at 63.7%. Yoma’s effective stake to increase up to 40.7% with a further US$25mn investment. We expect deeper collaboration and integration with Yoma’s other consumer businesses. Maintain BUY with an unchanged target price of $0.46.
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Singapore Exchange (SGX SP) Continued SADV Robustness a Catalyst; U/G BUY
Upgrade to BUY from Neutral, with new SGD9.20 TP from SGD8.60, 15% upside, supported by c.4% FY21F (Jun) yield. Our TP is pegged to 24x FY21F EPS. In this report, we raised Singapore Exchange’s assumed FY21 securities average daily value (SADV) by 15% to SGD1.32bn, given the recent weeks’ SADV strength. We believe the economic recovery from COVID-19 could give rise to more volatility in the equities market and hence increase trading.
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UOB KAYHIAN |
CGS CIMB |
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Offshore & Marine ‒ Singapore Looking To 2021 For A Slight Recovery
Rig day rates and utilisation rates deteriorated in 1H20 and chances of a recovery in the O&M sector in the near term remain low in our view. The industry outlook remains challenging and new order flow may only re-surface in 1H21 in our base-case scenario. This reinforces our view that an upcycle is 2+ years away. Maintain MARKET WEIGHT.
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Koufu Group Ltd Hunger games
■ We like Koufu’s net cash position, strong cash generation, and superior ROE and net margins vs. its peers. ■ Potential beneficiary of pent-up demand post phase 2 reopening, it expects average store sales to recover to 80-85% of pre-outbreak levels by Jul. ■ Our channel checks over the weekend also saw stronger footfall at some of its outlets. Catalysts: more store wins and opening of its integrated facility.
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Check out our compilation of Target Prices
