| UOB KAYHIAN | CGS CIMB |
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Alpha Picks: Adding In Yangzijiang & Reshuffling Mid Cap Picks
Our portfolio rose 1.2% mom in Aug 20, outperforming the FSSTI’s gain of 0.1% mom as more than half of our portfolio delivered gains of 4-12% mom. For Sep 20, we switch out Keppel Corp, CSE Global and Riverstone. In their place, we add Yangzijiang, Food Empire and Frencken. We highlight that Thai Bev’s current share price presents a good entry point given its attractive valuation, in our view.
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Frasers Centrepoint Trust Final step in acquiring ARF
■ FCT is acquiring the remaining 63.1% of ARF and disposing Bedok Point. ■ The acquisition will further raise FCT’s profile as a suburban retail REIT. ■ Raise FY21-22 DPU by 3-4%. Reiterate Add with DDM-based TP of S$2.83
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CGS CIMB |
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SATS Ltd Slowly but surely
■ We hosted a conference call for SATS's management with investors. Key discussion points included pace of aviation recovery and new growth areas. ■ We think SATS could be viewed as a recovery proxy but the pace of bilateral green lanes between Singapore and other countries being set up is key. ■ Maintain Hold and S$3.00 TP, based on 2.1x FY21F P/BV (10% above -0.5 s.d. of mean). DCF (WACC: 6.6%) equity value for SATS would be S$4.5bn.
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Check out our compilation of Target Prices
