| UOB KAYHIAN | UOB KAYHIAN |
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Sunpower Group (SPWG SP) 1Q21: Superior Profitability And Cashflow From GI; Awaiting Special Dividend
Sunpower’s 1Q21 results are in line, with earnings of Rmb59.2m (+15.6% yoy) led by more GI projects coming on-stream. Sunpower is in the midst of transitioning towards being a pure power producer. In 2021, Sunpower will focus on: a) improving capacity utilisation, b) expansion of coverage areas, and c) planned construction of expansion phases for existing projects. Maintain BUY with a higher target price of S$1.22, after accounting for the reduced amount of fully diluted shares.
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City Developments (CIT SP) Approaching The Trough
Singapore residential property development remains a highlight for CDL in its 1Q21 business update. While the rest of its businesses continue to face near-term challenges, we believe that the trough will be in the 2Q21/3Q21 period. Over the next six months, one potential share-price catalyst is the company’s IPO of its UK commercial assets. Maintain BUY. Target price: S$8.50.
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MAYBANK KIM ENG |
CSG CIMB |
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Prime US REIT (PRIME SP) Poised For Growth
Stable quarter, eyeing deal upside PRIME delivered a stable 1Q21, and like its peers, saw strong leasing momentum, albeit mostly from renewals. Improving market fundamentals should support demand recovery, with occupancies in our view, likely to bottom out in 2H21. DPU visibility is high, from its 4.3-year WALE, strong tenancies, and +2.0% pa growth from its AUM, currently under-rented by 6.5%. We see catalysts from improving leasing activity into 2021, and upside from acquisitions, backed by its strong balance sheet. Valuations are compelling at 8+% FY21 DPU yield, and 35% upside to our USD1.10 DDMbased TP (COE: 8.3%, LTG: 2.0%). BUY.
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AWC Berhad As steady as it goes
■ 9MFY6/21 core net profit of RM23.3m (+110% yoy) was above expectations. ■ AWC’s estimated orderbook stands at RM924m (up to end-CY25F), post securing RM250m worth of new contracts in 9MFY21. ■ Reiterate Add, with a higher TP of RM0.79 (9.6x CY22F P/E).
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Check out our compilation of Target Prices
