| UOB KAYHIAN | PHILLIP SECURITIES |
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STRATEGY – SINGAPORE A Tidal Wave of Change
In Nov 20, MSCI announced that it will allow foreign-listed shares into its MSCI Singapore index. The potential inclusion of Sea Limited into the index will see more buying of the stock, and the unfortunate ramification of funds selling out of the largest constituents: DBS, OCBC, UOB, Singtel and Wilmar. MSCI has stated that the inclusion of Sea will be in four phases spread over nine months which will somewhat minimise the impact.
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PAN-UNITED CORPORATION LTD. Concrete leader & innovator SINGAPORE | SMALL CAP | INITIATION
Largest provider of ready-mixed concrete in Singapore. A recovery in construction demand by as much as 31% in 2021e is expected to boost its revenue for the next two years. Barriers to entry include limited silo availability, costly batching plants, vertical integration, efficient delivery system and a major market share. Initiate coverage with BUY and target price of S$0.40, based on 7.8x FY21e EV/EBITDA, its 10-year average (excluding outliers in FY12 and FY17).
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MAYBANK KIM ENG |
DBS VICKERS |
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Thai Beverage PCL (THBEV SP) A cocktail for success
Initiate BUY; strong brands with cheap valuation Initiate coverage on ThaiBev with BUY and TP of SGD0.95, pegged to 20x FY21E EPS. We believe ThaiBev’s portfolio of top brands is well-poised to capture post-Covid recovery, driven by easing restrictions of on-premise consumption. Concurrently, its beer business is positioned for margin expansion as a result of positive operating leverage. The stock is trading at 15.1x FY21E P/E, -1 S.D below historical mean and 65% discount to peers. Potential IPO of BeerCo is a near-term re-rating catalyst, which could lift our TP to SGD1.24.
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Singapore Property New regulations for retail leases a win-win for all parties
• Government to legislate a new code of conduct for retail lease negotiations • Creates level playing field for landlords and tenants to ensure business continuity • Dominant malls continue to be leaders in attracting traffic and tenants • Prefer FCT, LREIT, MCT
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Check out our compilation of Target Prices
