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Innotek Limited (INNOT SP)Company Update (Updated 21 May 2021) Caught the EV bug
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Mapletree Industrial Trust (MINT SP) Scaling Up Data Centres
Adding to US data centres MINT has picked up its pace on acquisitions with its latest USD1.32b US data centre deal. The investment, at an initial 5.1% NPI yield is DPU and NAV accretive. It should boost the segment’s contribution from c.41% to c.54% of its AUM, while strengthening DPU visibility from a longer 4.6-year WALE (from 4.0 years). With its portfolio recalibration plans well underway, we see further DPU-accretive deals, as management advances diversification efforts to deepen data centre concentration to 50-67% of AUM. Our DPUs are intact while our DDM-based TP stays at SGD3.25 (COE: 6.0%, LTG: 2.0%) pending deal closure. BUY.
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UOB KAYHIAN |
UOB KAYHIAN |
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Singapore Airlines (SIA SP) 2HFY21: Little to Cheer With Additional S$6.2b in MCB Issuance
While earnings were within expectation, the issuance of the S$6.2b in MCB offers shareholders little to cheer, aside from buying the carrier time to ride out the crisis. Still, the MCB will eventually be dilutive given that it has a 6% semi-annual yield to call. The accrued interest on the MCB is also carried off-balance sheet but in valuing SIA, we have factored in dilution from the deemed conversion of the MCB, including accrued interest. Maintain SELL. Target price: S$4.15.
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Berjaya Sports Toto (BST MK) 3QFY21: Severely Impacted By Re-implemented MCO
3QFY21 results came in within expectations. Net profit declined 62% yoy mainly due to a higher prize payout and 18 fewer draw days (25% fewer) in the quarter to comply with the government’s re-imposed MCO. Subsidiary H.R. Owen also posted a resilient performance on better operating efficiency and higher sales. Moving forward, we expect valuations to partially price in the full earnings recoveries in FY22 and its compelling yield of >7%. Maintain BUY with a target price of RM2.46.
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