|UOB KAYHIAN||CGS CIMB|
China Sunsine (CSSC SP)
Pricing Yet To Stabilise
Specialty chemical producer China Sunsine Chemical is the global market leader of rubber accelerators and China’s largest producer for insoluble sulphur. Its sticky sales base is backed by over 1,000 global customers, including over two-thirds of the Global Top 75 tyre makers. However, the industry remains oversupplied and selling prices continue to stay depressed. Initiate coverage with SELL and target price of S$0.31.
Property Devt & Invt
Strong Aug home sales
■ Aug ex-ECs primary home sales rose 11.8% yoy to 1,256 units.
■ 8M20 volume sales formed 70-79% of our 2020F volume sales projection.
■ Reiterate sector Overweight on valuations. Preferred picks: CAPL, CIT, UOL
Tuan Sing Holdings
Making a case
Undervalued property play. We maintain our BUY call and TP of S$0.44. Trading at 0.3x P/NAV (between -1SD and -2SD from 3- year mean), we continue to see good value in the stock. In addition, office fundamentals favour a completion of the S$500m sale of Robinson Point which could drive a re-rating in valuation following improved balance sheet metrics.
Singapore Office REITs
China tech giants to spur office demand
• Tencent, after Alibaba and ByteDance, has named Singapore as its Asia hub and could spur another upcycle of Singapore office demand
• Given the high occupancy and limited upcoming supply until FY22, this is significant news as it reiterates our positive stance on Singapore office REITs
• Potential beneficiaries are Grade A prime CBD office landlords such as CCT/KREIT or business parks
• Top picks for office sectors are KREIT and MCT
Check out our compilation of Target Prices