ANALYSTS SAY: Buy, Sell, Hold (24 May)

UOB KAYHIAN

Mapletree Logistics Trust (MLT SP)
Switching Emphasis To Redevelopment Projects

MLT has embarked on the redevelopment of 51 Benoi Road into a six-storey ramp-up logistics property with GFA of 865,000sf. It plans to amalgamate and redevelop two newly-acquired parcels of leasehold industrial properties and its existing Subang 3 and 4 properties at Subang Jaya, Selangor into a six-storey ramp-up logistics megahub with GFA of 1.4m sf. Unit price has corrected 25% from its recent peak and FY23 distribution yield has improved to 5.7%. Maintain BUY. Target price: S$2.23.

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DFI Retail Group (DFI SP)
Headwinds Stronger Than Expected – Downgrade To HOLD

DFI guided for negative earnings growth in 2022 in its 1Q22 interim management statement. Apart from cost pressures and supply chain issues, DFI’s earnings are likely to remain highly subjective to the vagaries of government policy in the near to medium term. We cut earnings by 14-48% for 2022-24 with the biggest impact in 2022 as the company accounts for its Yonghui associate’s 4Q21 losses. We lower our rating to HOLD from BUY. Target price: US$2.87 (previously US$3.65).

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MAYBANK KIM ENG

MAYBANK KIM ENG

Malaysia Airports (MAHB MK)
Climbing steadily

Maintain BUY call with higher TP of MYR7.17 (+2%)
Malaysian (MY) international passenger (pax) traffic is starting to improve. Curiously, Turkish (TR) domestic pax traffic is recovering slower than the international one. Yet, we are not complaining as the latter is much more profitable than the former. We narrow our FY22E net loss by 23%. While our FY23E and FY24E net profit are little changed for now, there could be upside from a new Operating Agreement which is due soon. Tweak DCFbased TP to MYR7.17 from MYR7.00. Maintain BUY. 

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Revenue Group Bhd (REVENUE MK)
Earnings uplift from favourable
sales mix

Maintain BUY
3QFY22 earnings were up 25% YoY despite a 21% sales decline as the higher sales mix from the ETP segment led to higher operating margin. 9M results exceeded both our and consensus expectations, considering a potential strong quarter ahead, supported by the festive season. We raise FY22E EPS by 8%, but retain FY23-24E earnings due to potential consumer spending softness. Maintain BUY with an unchanged TP of RM1.58, based on 39x FY23E EPS, pegged to its historical average. The stock is trading at -1SD its 4YR mean despite a projected 3-year EPS CAGR of 28%, making it attractive in our view. 

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