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Credit Bureau Asia Ltd Venturing into Vietnam
■ CBA announced it will be entering into a JV with FiinGroup in its inaugural foray into Vietnam, aiming to provide analytics and data solutions to FIs. ■ The JV aims also to set up a credit bureau in Vietnam. CBA sees significant potential as c.38% of Vietnam’s 97m-strong population remain underbanked. ■ Reiterate Add with TP of S$1.53. We expect S$4.7m PATMI in 1H21F (+17% yoy) to be sustained by risk review volumes and a pick-up in credit growth.
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CGS CIMB |
CGS CIMB |
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Singapore Press Holdings Finding the right fit
■ Proposed privatisation of SPH by Keppel Corp with a total consideration of S$2.099/share values SPH at 1x P/NAV. ■ Our deep dive report “What’s next” listed KEP as a potential investor in SPH. Both have a history of joint legacy investments over the years. ■ SPH’s aspirations to grow its recurring income base in asset management are similar to Keppel Corp’s model, in our view. ■ According to SPH, there were no pure cash offers in all of the bids received. KEP’s offer was an optimal one. Reiterate Add (TP S$2.19).
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Keppel Corporation Plug and play
■ Our deep dive report: What’s next listed KEP as a potential investor in SPH. We estimated c.S$1.1bn non-core assets for recycling (ex. M1). ■ KEP is paying 1x NAV of SPH as of 1H21 (ex. distribution of dividend in specie of SPH REIT) with c.14% FY23F EPS accretion ■ There is synergy between SPH non-media businesses and KEP’s urban development and connectivity and Keppel Capital. Reiterate Add at S$6.90.
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Check out our compilation of Target Prices
