UOB KAYHIAN | UOB KAYHIAN |
Hong Leong Asia (HLA SP) Riding A Strong Recovery Wave And Accelerating Demand From A Low Base
HLA’s building materials segment is set to benefit from a strong recovery in 2021, after suffering from a significant period of lockdown in 2020. Also, the diesel engines segment will experience robust growth in 2021 as consumers start purchasing a new version of engine. In 2020, HLA closed down its loss-making segments. We estimate a strong EPS growth 52% yoy in 2021. We initiate coverage with a BUY and target price of S$1.38, pegged to 12x 2022F PE (+1SD above mean PE).
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Mapletree Commercial Trust (MCT SP) 2HFY21: Weathered The Storm, Riding The Recovery
MCT reported DPU of 5.32 S cents (+57.9% yoy) for 2HFY21, which is slightly above our expectation. VivoCity maintained stable occupancy of 97.1%. Tenant sales reversed to expansion of 5.2% yoy in 4QFY21. Occupancy at MBC II temporarily dropped 5ppt qoq to 90.2% in 4QFY21 but the new tenant will start contributing in 1QFY22. MCT’s properties are strategically located to benefit from the Sentosa-Brani Master Plan and GSW. Maintain BUY. Target price: S$2.50.
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CGS CIMB |
PHILLIP SECURITIES |
Jiutian Chemical Group Ltd A flying start
■ 1Q21 net profit was above expectations at Rmb90m (+42% qoq, a 31-fold increase yoy), driven by higher-than-expected ASPs. ■ DMF prices remained high at Rmb11k/ton (+40% YTD, +120% yoy), thanks to robust downstream demand; we raise our FY21F NP forecast by 41%. ■ We see possibility of a maiden dividend (since 2008) to be declared this year. Reiterate Add with a higher TP of S$0.15, still pegged to 5.7x FY22F P/E.
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Sheng Siong Group Ltd Resilience despite no new shops
SINGAPORE | CONSUMER | 1Q21 UPDATE ▪ 1Q21 revenue and earnings were within expectations, at 27%/30% of forecasts. 1Q21 benefitted from festive spending. ▪ Gross margins remained elevated at 27.6% vs. pre-pandemic’s 26.8%. ▪ No new stores were opened in past six months. Tenders of new HDB stores have been delayed, except for one large upcoming bid. ▪ Our FY21e PATMI and target price of S$1.71 are unchanged, at 25x P/E, its 5-year historical average. Maintain ACCUMULATE. With international borders still closed, revenue should remain above pre-pandemic levels. FY22e to benefit from accelerated rollout of new stores. 1Q21 annualised revenue per sq ft was S$2,363, towering above S$1,916 in pre-pandemic 2019.
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