Keppel Corporation
4Q21F: Generous dividend

■ We expect KEP to report c.53% hoh increase in net profit in 2H21F (on 27 Jan) to S$459m, boosted by divestment gains of c.S$396m.
■ KEP clocked in S$1.6bn of proceeds in 2H21F from asset recycling efforts, paving way for stronger final DPS of S$0.16-0.18 (FY21F: S$0.28-S$0.30)
■ Reiterate Add with higher SOP TP of S$7.20 as we roll over to FY23F.
■ KEP trades at 0.85x and 11x CY22F P/BV and P/E, -1 sd below its historical
average. Catalyst: aggressive asset recycling and earnings accretive M&As. 

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MAYBANK KIM ENG

UOB KAYHIAN

Axis REIT (AXRB MK)
Higher acquisition targets

Maintain as top BUY
4QFY21 core earnings and 4th interim gross DPU of 2.41sen (FY21: 9.49sen) were within expectations, with FY21 earnings coming in at 96%/100% of our/consensus estimates. We adjust higher our FY22/23E earnings by 1%/12%, which increases our rolled-forward DDM-TP to MYR2.30. Maintain BUY. Axis remains as our top pick in the REITs sector, supported by resilient rental income from industrial properties and active assets acquisitions.

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Sentral REIT (SENTRAL MK)
4Q21: Results Within Expectations

Sentral REIT’s results came in within our estimates, with full-year 2021 core earnings
accounting for 98% of our full-year forecast. Operations remain fairly resilient and we
believe SENTRAL will continue to report decent results moving forward, given that its
tenants are mostly well-established MNCs. The stock offers an attractive dividend yield
of at least 8% from 2022 onwards. Maintain BUY and target price of RM1.00. 

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