| CGS CIMB | CGS CIMB |
|
Aztech Global Ltd Blinking growth
■ Johor plant’s area expansion by 89% underway by 1H21F to support 30% higher volume production from Customer A, according to management. ■ We forecast AZTECH to deliver a 18.4% net profit CAGR between FY21F and FY23F from strong IoT demand and a robust order book. ■ Initiate coverage on AZTECH with an Add rating and a P/E-based TP of S$1.91. The group’s order book stands at $489m as of end 1Q21.
|
ESR-REIT AEIs, lower debt cost to drive growth
■ EREIT’s 1QFY21 core DPU of 0.8 Scts (+14.8% yoy) came in line at 27% of our FY21F DPU. ■ Occupancy remained high at 91%; rental reversion -5% as leases were negotiated last year when operating environment was weak. ■ Reiterate Add with an unchanged TP for its attractive yield of over 7%.
|
|
CGS CIMB |
UOB KAYHIAN |
|
Keppel Corporation Good blend of old and new economy
■ KEP updated that 1Q21 revenue was S$1.889bn (c.28% of our FY21F) and net profit was slightly higher yoy (1Q20: S$160m); we deem them in line. ■ Positives: Keppel O&M order book could double to S$6bn if P-78 contract is in, Bifrost secured maiden customer, strong home sale in China. ■ Negatives: KrisEnergy impact still uncertain with total exposure of S$423m although mainly secured. Keppel O&M still loss-making. ■ Reiterate Add, and SOP-based TP of S$6.40. Announcement of new growth initiatives (e.g. renewables, EV) and divestments are key catalysts.
|
Aztech Global (AZTECH SP) Proxy To High-growth IoT Products
Aztech is an electronics manufacturer with 34 years of proven track record in adapting to evolving trends and transforming from an OEM into a full-fledged manufacturer. Aztech is well-positioned to ride on the high growth in IoT products via a renowned US e-commerce retailer. We forecast 3-year earnings CAGR of 33.8% for 2020-23, on more order wins from Customer A and order growth from IoT products. Initiate coverage with BUY and target price of S$1.86.
|
Check out our compilation of Target Prices
