Oxley Holdings (OHL SP)

1HFY21: In-line Results In A Back-End Loaded Year

Oxley reported 1HFY21 net profit that more than doubled yoy, helped by lower interest costs and full contribution from an Australian subsidiary. Debt and bond repayment issues in the coming 12-18 months appear well funded, thus removing one of the market’s major concerns on the stock. Long-term withdrawal from emerging markets is also a positive in our view. Maintain BUY. Target price: S$0.370.

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Singapore Retail

Where to shop in Orchard?

• Although lagging, shopper metrics should narrow in the coming months from higher local spending

• LREIT is best leveraged to deliver stronger metrics given its higher concentration in retail segments with greater upside potential

• Prefer LREIT and SGREIT for their attractive implied retail valuation psf and lower earnings risks

• Top pick LREIT; prefer SGREIT to SPH REIT for Orchard Road recovery play

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DBS VICKERS

DBS VICKERS

CSE Global secured S$98.4m worth of new orders in 4Q20, -57.2% y-o-y. FY20 new order intake of S$431.5m, -25.4% y-o-y.

• Lower new order intake was mainly due to lower orders intake in the Oil & Gas segment (-66.8% y-o-y) as there were two large contract wins amounting to S$103.7m in 4Q19. Excluding the large contracts, the new orders in the O&G segment was down 26.8% amidst a weaker operating environment in the oil & gas industry.
• The infrastructure sector recorded a 4.6% y-o-y increase in new order intake in 4Q20, supported by a steady stream of infrastructure projects.
• New orders in line with FY20 new order intake forming 106.0% of our FY20F new order intake assumption.
• The sequential pick up in its new orders in its O&G business segment reaffirms our belief that the worst is likely over (as we have iterated in our last update). With WTI oil prices trending higher to US$61/bbl, from its stabilisation at US$40/bbl in 2H20, we are expecting continued sequential improvement ahead.

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Prime US REIT: A good FY20 report card

• 2H20 and FY20 DPU of 3.42 UScts and 6.94 UScts beat IPO forecasts by 2.1% and 3.6% respectively (above our estimates), led by new acquisition.
• Key positives: i) occupancies have held up better than its peers; ii) strong positive rental reversions in FY20 and YTD FY21; iii) rental collections in FY20 at 99%; iv) gearing remains low, firepower for acquisitions.
• Key negatives: i) existing vacancies have yet to backfilled; ii) slight decline in asset valuation
• Maintain BUY; TP of US$1.00

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