| UOB KAYHIAN | UOB KAYHIAN |
|
CapitaLand Integrated Commercial Trust (CICT SP) Bumpy Recovery But Reopening Likely To Resume
CICT weathered a bumpy recovery as Phase 2 (Heightened Alert) was followed by a new wave of Delta variant infections. Downtown malls continued to incur negative rental reversions. For the office portfolio, AST2, CapitaGreen and Capital Tower are expected to see transitory vacancies. Nevertheless, CICT benefits from the reopening due to its diversified exposure to retail and office. 2022 distribution yield of 5.5% is attractive given its scale and diversification. Maintain BUY. Target price: S$2.40.
|
Frencken Group (FRKN SP) Structural Growth Story Intact; Maintain BUY
High-tech component manufacturer Frencken is a longer-term beneficiary of positive trends in the technology sector. With a diverse blue-chip clientele, its earnings should be more stable than its peers’ amid the ongoing disruptions brought about by the COVID-19 pandemic, which has impacted manufacturing plants worldwide. Frencken’s EPS is expected to grow at a 24% CAGR over 2020-23. Maintain BUY and target price of S$2.62.
|
|
UOB KAYHIAN |
MAYBANK KIM ENG |
|
Koufu Group (KOUFU SP) Well-Positioned For Recovery From Further Reopening
Business in Singapore is expected to improve with easing restrictions and further reopening of its borders. This comes as a higher percentage of its population is vaccinated. Visitors to malls and casinos should increase gradually, while those to heartland areas should remain resilient. Koufu is in a good position to emerge stronger against its competitors post-pandemic, given its good expansion strategy and strong balance sheet. Maintain BUY and target price of S$0.77 (17x 2022F PE)
|
AIMS APAC REIT (AAREIT SP) Growing Resiliency
Improving DPU, portfolio metrics AAREIT delivered a strong 2Q22, with DPU up 25% YoY/11% QoQ, underpinned by better portfolio occupancy and rental reversion. Fundamentals are improving with buoyant logistics demand (c.50% of gross rental income). We raised FY23-24 estimates by 2% on stronger rental growth assumptions, and our DDM-based TP to SGD1.65 (COE: 7.4%, LTG: 1.5%). The Woolworths’ acquisition, set to complete in two weeks, should lift its Australian contribution from c.22% to c.38% of AUM, boost DPUs by 4-5%, and strengthen income visibility. For now, valuations are undemanding at 6.7% FY22E DPU yield, and 1.0x P/B. BUY.
|
Check out our compilation of Target Prices
