MAYBANK KIM ENG | MAYBANK KIM ENG |
OCBC Bank (OCBC SP) A portfolio for delivery
Wealth, North Asia, Singapore all set to deliver OCBC’s strong, expectations beating 1Q21 performance was supported by mark-to-market and trading gains. These may be volatile going forward, but more stable sources such as wealth and transactional fees are also rising. An improved loan growth outlook with a stabilized NIMs environment should support further operational growth, especially given its gearing to North Asia and Singapore. Strong capital and allowances together with a better than expected asset quality backdrop could drive reserve write backs in 2H21, we believe. We raise TP to SGD14.17. BUY.
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Genting Singapore (GENS SP) Slow start to FY21
Maintain HOLD call but trim TP by 7% to SGD0.86 1Q21 results came in below our expectations as Singapore’s borders remain largely closed. FY21 will be another challenging year as COVID-19 cases are resurgent in Resorts World Sentosa’s (RWS) key markets. We slash our FY21E/FY22E earnings by 59%/45% but leave our FY23E earnings little changed as we expect operations to have recovered by then. To date, c.25% of Singapore’ population has been vaccinated (c.15% fully vaccinated). Our DCF-based TP is trimmed to SGD0.86 from SGD0.92.
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UOB KAYHIAN |
PHILLIP SECURITIES |
Singapore Press Holdings (SPH SP) Media Transfer Protocol For A Longer-term Gain
SPH announced the transfer of its media business to a not-for-profit entity given the decline in advertising revenue. Deconsolidation of the media business would allow for: a) shareholding restrictions on SPH to be lifted, and b) removal of media segment losses from the group. After restructuring, the group’s NAV/share is about S$2.08, with the current price at a discount of 27%. Maintain BUY with SOTP-based target price of S$1.85.
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Lendlease Global Commercial REIT Recovery on brakes SINGAPORE | REAL ESTATE | 3Q21 UPDATE
3Q21 tenant sales and mall visits recovered to 94% and 77% of 3Q20 levels. Rental reversions were less negative. Financial impact of Code of Conduct expected to be immaterial. Higher construction costs likely for Grange Road Carpark redevelopment. Shelved AEI for 313 to proceed in stages to ensure minimal disruptions to footfall and sales. Maintain ACCUMULATE and DDM target price of S$0.82 (COE 8%).
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Check out our compilation of Target Prices