| UOB KAYHIAN | UOB KAYHIAN |
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Singapore Press Holdings (SPH SP) 1HFY21: Earnings & Dividends Above Estimates; Review Amid Media’s Decline.
SPH core earnings of S$69m was ahead of expectations, aided by recovery from its retail property as well as lower production & distribution costs. SPH also announced a strategic review, noting the hard-hit media business. If a transacted sale of the segment were to take place, we see that this could potentially lift a key overhang on the counter. The group also shone some light on its digital portfolio, where it continues to undergo proactive capital recycling. Maintain BUY with a higher target price of S$1.85.
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Mapletree Industrial Trust (MINT SP) MINTing Growth And Resiliency Through Data Centres
MINT is committed to its goal of allocating two-thirds of AUM to data centres. It has to acquire at least S$1b worth of data centres per year over the next five years to realise its vision. It has just completed the acquisition of another data centre in Richmond, Virginia and could move on to acquire the remaining 50% stake in a second data centre JV from Mapletree Investments in FY22. MINT provides FY22 distribution yield of 5%, vs KDCREIT’s 4%. Maintain BUY. Target price: S$3.50.
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CGS CIMB |
DBS VICKERS |
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ST Engineering Upping the game
■ STE raises its offer to buy Cubic Corp from US$76/share to US$78/share, after Veritas Capital/Elliot revised their bid from US$70 to US$72/share. ■ STE will pay US$2.48bn for Cubic Corp with preliminary valuations of US$850m-950m for Cubic Mission & Performance Solutions. ■ This means STE will pay US$1.5bn-1.6bn for Cubic Transportation Systems, or 12.9x-15x FY20 EV/EBITDA, in line with STE Group’s EV/EBITDA. ■ We hope this is the last bid STE offers as a prolonged pricing war could be a negative overhang on share price. Reiterate Add and TP of S$4.00.
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SPH REIT: Sales gap persists within suburban and central malls (1H20 results)
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Check out our compilation of Target Prices
