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ISDN Holdings Ltd Growth to continue into FY21F
■ 9M20 net profit (at 80% of our FY20F estimate) was in line with our forecast. ■ 9M20 performance was driven by strong orders in its core industrial automation business. ■ Reiterate Add with a higher S$0.65 TP as we raise our P/E target to 12x given its strong results and after rolling over to CY22F.
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Manulife US REIT Still going strong
■ MUST’s portfolio occupancy was at 94.3% in 3Q20. ■ There is potential for interest cost savings from debt refinancing in FY21F. ■ We reiterate our Add rating with a DDM-based TP of US$1.05.
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CGS CIMB |
MAYBANK KIM ENG |
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Yangzijiang Shipbuilding Expect more orders ahead
■ 3Q20 net profit of Rmb585m (-17% yoy, -24% qoq) was below our forecast of Rmb700m-750m due to lower revenue and forex loss (Rmb367m). ■ YTD order wins stand at S$1.03bn. We expect it to meet its FY20 order win target of US$2bn. Current order book is at c.US$2.6bn. ■ Reiterate Add. The stock is cheap at 0.5x P/BV and 5x P/E ex-cash. Our SOP-based TP implies c.0.8x CY20F P/BV (-0.5 s.d. of mean).
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DBS Group (DBS SP) Resilient Delivery
Business mix geared towards regional recovery DBS’ 9M20 PAT was higher than MKE/Street expectations. Strong fee income from its wealth management franchise helped and this momentum should pick up going forward. Concurrently, its exposure to North Asia and large corporate client mix should support DBS leading operational recovery ahead of peers who have larger SME footprints. Asset quality remains an overhang, but significant provisioning cover exists. Dividend caps continuing to 2021E remains a strong likelihood, but DBS’ absolute dividend policy provides better visibility than peers. We have rolled forward and raised our multi-stage DDM TP to 24.63. Maintain BUY.
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Check out our compilation of Target Prices
