|UOB KAYHIAN||CGS CIMB|
ARA LOGOS Logistics Trust (ALLT SP)
New Platform Generates Growth And Yield Compression
With LOGOS installed as the new sponsor, ALOG could tap on: a) its expertise in the development of logistics properties; and b) its sizeable acquisition pipeline of US$10.2b, of which more than half is located in Singapore, Australia and China. In its maiden acquisition post-reorganisation, ALOG will expand its asset size by 28% and deepen its presence in Australia and the cold storage sector. Distribution yield is attractive at 8.1% for 2021-22. Re-initiate with BUY. Target price: S$0.85.
Singapore Press Holdings
Needs a boost from non-media segments
■ The media business may see improvement in the near term due to the impact of Covid-19 in FY20, but structural decline risks remain.
■ Property business to recover and partially offset the weakness from media.
■ Reiterate Hold. The stock is trading at 0.5x P/BV (-2 s.d. from 5-year mean).
Small-mid cap strategy
Vaccines to accelerate rebound
• Expect SMCs to catchup with larger caps on attractive valuations
• Hospitality and retail are beneficiaries of COVID vaccines and reopening of economies - our picks are ART, CDLHT, LREIT, CRCT
• Revival of M&A: potential targets in the technology space - Spindex, Fu Yu, Valuetronics; REITS – AIMS APAC; Consumer – Delfi, QAF; Deep value – YZJ, HPHT, CAO
• Re-rating of tech stocks to continue led by structural changes; Remain positive on semiconductors – AEM, UMS, Frencken
• Other themes: Steady earnings growth - iFAST, Delfi, First Resources, Bumitama; Value plays - Koufu, CAO, HPHT, Tuan Sing
Ascott Residence Trust
Risk-sharing for master leases in France
Investment Thesis Compelling value. We see compelling value in Ascott Residence Trust (ART) at 0.8x P/NAV, more than -1.5 SD of its historical 10-year mean, with an attractive 6.9% FY22 dividend yield with upside if travel rebound occurs faster than expected. Our TP is raised to S$1.20, offering total returns in excess of 21%. Our target price implies a target P/NAV multiple of 1.0x.
Check out our compilation of Target Prices