Silverlake Axis Ltd
Looking forward to a better FY21F
■ FY20 core NP of RM143m (-32% yoy) was below expectations at 85% of our forecast. FY20 dividend payout ratio lowered to 40% (FY19: 60%).
■ Despite cautious business environment, SILV was able to grow its orderbook with smaller enhancement projects. Deal pipeline also remains healthy.
■ Upgrade from Hold to Add, as we believe the worst is over, and see earnings recovery in FY21F. Our TP is lifted to S$0.39, based on 16.3x CY21F P/E.
| Singapore Exchange (SGX SP)
Good Trading Volumes For July/August; Still BUY
• Keep BUY with higher SGD9.50 TP from SGD9.20, 10% upside with c.4% FY21F (Jun) yield. Our TP is pegged to 24x FY21F P/E. The securities average daily value (SADV) for the first seven weeks of FY21 was SGD1.33bn, in line with our FY21F of SGD1.4bn. July’s derivatives average daily volume was also robust, driven by China A50 Index Futures’ MoM rise. Singapore Exchange remains attractive, since the SADV could rise as more news flow emerges on the COVID-19 situation.
ComfortDelGro Corporation Limited (CD SP): Refuelling for the journey ahead
- Saved by government grants. CD reported a net loss of S$6mn in 1H20. If not for government grants, it would have reported a loss of S$66mn.
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