| UOB KAYHIAN | CGS CIMB |
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Singapore Post (SPOST SP) FY21: Missed Expectations; Awaiting Better Visibility
SPOST’s core net profit for 2HFY21 was down 40% yoy as international post and parcel margins continue to be disrupted by air freight capacity cuts. Operating margins have been hard hit, falling to 5.6% (-5.3ppt yoy) in spite of the positive outlook from ecommerce demand propelling the domestic post and parcel segment as well as the logistics segment. The visibility on air freight capacity is still uncertain, which could continue to weigh on margins. Maintain HOLD with a target price of S$0.73.
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United Overseas Bank Towards double-digit ROEs
■ 1Q21 net profit reached a pre-Covid-19 level of S$1bn. Steady PPOP growth supported by record wealth management income, strong treasury, higher NII. ■ UOB views asset quality as stabilising, lowers its FY21 credit cost guidance to below 30bp. UOB will take a conservative approach on writebacks. ■ Reiterate Add. The combination of lower specific provisions and non-II growth hints of a return to c.10% ROE in FY21F. Removal of dividend cap a catalyst.
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CGS CIMB |
CGS CIMB |
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Frasers Logistics & Commercial Trust Business as usual
■ 1HFY21 DPU of 3.80 Scts is within expectations, at 48.1% of our FY9/21F forecast. ■ Portfolio rental reversion at +0.1% as at 1HFY21 although occupancy slipped marginally. ■ Reiterate Add with a DDM-based TP of S$1.57.
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Singapore Press Holdings Press off
■ SPH is deconsolidating and transferring its media business to a not-for-profit entity. SPH will incur one-off capitalisation for the media business. ■ We view this positively as the restructuring removes the drag from media business and gives financial and shareholding flexibility to grow its business. ■ Reiterate Add with an unchanged TP, pending the completion of the exercise.
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Check out our compilation of Target Prices
