| CGS CIMB | UOB KAYHIAN |
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SingTel Bharti recovery to mitigate challenging 3Q
■ 3QFY3/21 group EBIT (including regional associates’ PAT) likely fell 23-25% yoy (4-6% qoq) to S$605m-615m; in line/slightly ahead of our expectations. ■ We see weaker earnings yoy from Singapore, Optus and Telkomsel, partly mitigated by smaller negative contribution from Bharti. ■ Reiterate Add, with an unchanged SOP-based target price of S$3.10.
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Singapore Airlines (SIA SP) S$4.4b In Capex Deferment Is A Key Positive
SIA has finally managed to defer capex by S$4.4b, which would reduce its cash burden substantially over the next two years. More importantly, we believe that the odds of SIA exercising another S$6.2b in MCB would now be lowered. With that, equity holders will face less risk of dilution. We have thus raised our fair value multiple for SIA to 1.0x FY22 and FY23’s average and derived a fair value of S$4.43. Maintain HOLD. Suggested entry price: S$4.00.
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UOB KAYHIAN |
MAYBANK KIM ENG |
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Yangzijiang Shipbuilding (Holdings) (YZJSGD SP) Starting Off The Year With A Bang
YZJ announced a slew of containership and bulk carrier orders worth US$1.3b with most of the orders coming from China-based clients. We raise our 2021 earnings forecasts by 3% for 2021 given that most of the new orders are containerships which attract higher gross profit margins. Maintain BUY. Target price: S$1.17.
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Genting Singapore (GENS SP) Could not emulate Marina Bay Sands’ sterling 4Q20 results
D/G to HOLD with lower TP of SGD0.92 (-3%) 2H20/FY20 earnings and dividends outperformed our expectations. That said, the outperformance was largely due to non-recurring items. Unfortunately, Resorts World Sentosa (RWS) could not emulate Marina Bay Sands’ (MBS) in growing gaming revenue in tandem with the lifting of operating capacity limits. Our earnings estimates are little changed for now. We also trim our DCF-based TP by 3% to SGD0.92 on minor housekeeping. With <10% upside potential, we downgrade GENS to HOLD.
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