| UOB KAYHIAN | UOB KAYHIAN |
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NetLink NBN Trust (NETLINK SP) 2QFY21: Within Expectations; Resilient Fibre Connectivity Demand
NetLink reported a 2QFY21 net profit of S$21.3m (-8% yoy) on higher tax expenses for the quarter vs tax credits in 2QFY20. Positively, PBT came in strong at S$24.4 (+10% yoy) on the back of resilient residential revenue, higher EBITDA margin of 77%, and government grants. The group declared a 1HFY21 DPU of 2.53 S cents, in line with expectations. The stock offers sustainable dividend yield of 5.3% for FY21. Maintain BUY on share price weakness with unchanged DCF-based target price of S$1.08.
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Venture Corporation (VMS SP) 3Q20: Results In Line; Sequential Recovery Demonstrates Resilience
3Q20 net profit fell 6% yoy (+14% qoq), with 9M20 forming 71% of our full-year estimate. Sequential recovery continued in 3Q20 due to: a) further reopening of economies; and b) better demand for customers’ essential products. 4Q20 should continue to enjoy qoq sequential recovery. New products are expected to be launched in 2021, and demand for key segments (medical devices, networking and semiconductor) appears unabated. Maintain BUY and target price of S$23.76 (19.4x 2021F EPS, +1SD of mean).
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PHILLIP SECURITIES |
PHILLIP SECURITIES |
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UG Healthcare Corporation Ltd One quarter already beat one year SINGAPORE | HEALTHCARE| 1Q21 BUSINESS UPDATE
1Q21 revenue and earnings beat our forecasts by more than 40%. Higher selling prices bumped up revenue and margins. Quarter’s PATMI of S$22.7mn already higher than FY20. Revenue surged 170% YoY to S$71mn: Europe +182% YoY, South America +237%. Gross margins were a record 70%, higher than our forecast 43%. We raise FY21e PATMI by 55% to S$84.3mn for higher ASPs, revenue and gross margins. TP is flat at S$1.35 vs S$1.33 previously, as we use more normalised earnings in FY22e as our basis. TP is now pegged at 14x PE, a 30% discount to larger glove peers vs 40% discount earlier. We believe this is warranted by an improved balance sheet, profitability, track record and expansion plans.
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Manulife US REIT Low expiries amid soft leasing SINGAPORE | REAL ESTATE (REIT) | 3Q20 UPDATE
No financials released in 3Q20 operational update. Slow quarter with no new leases signed. Portfolio occupancy dipped from 96.2% to 94.3% while portfolio subletting was unchanged at 3.3%. Gearing rose from 36.0% to 39.9% YoY due to a 2.9% decline in valuation in June 2020. Long WALE of 5.5 years maintained. Locked in +7.9% rental reversions YTD. Maintain BUY with higher DDM TP of US$0.92, raised from US$0.90 after incorporating lower cost of debt.
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