|
Frasers Centrepoint Trust (FCT SP)
Defensive Strength Supported By Essential Services
FCT is one of the most defensive S-REITs. Essential services account for 45% of its
total NLA and contribute 54.4% of gross rental income. Tenant sales have surpassed
pre-pandemic levels since Oct 21, and were 11% above pre-pandemic levels in Jun 22. It
can weather uncertainties due to its strong balance sheet with low aggregate leverage
of 33.9%. Maintain BUY for its defensive yield of 5.8% for FY23. Target price: S$2.74.
Read More ...
|
Lendlease Global Commercial REIT (LREIT SP)
Revival Of HSR A Potential Bonanza
Jem, LREIT’s largest asset which accounts for 59.3% of its portfolio valuation, will benefit from the revival of the HSR. The upcoming HSR, if agreed and constructed, would bring more vibrancy to Jurong Gateway as the second CBD in Singapore. Jem will benefit from an increase in shopper traffic due to patronage of employees working in office buildings nearby and tourists from across the ASEAN region. BUY for its attractive FY23 distribution yield of 6.2%. Target price: S$0.99.
Read More ...
|
Alliance Bank (ABMB MK)
1QFY23 surprised positively on credit cost write-backs
BUY maintained
ABMB’s results were above expectations largely on account of credit cost writebacks in 1QFY23. We lower our credit cost estimates marginally, but maintain elevated levels in light of inflationary pressures. As such, our FY23-25E forecasts are raised by just 3-4%. We maintain a BUY on ABMB with a slightly higher (+20sen) TP of MYR4.50 (revised PBV of 1x [previously 0.9x], CY23E ROE of 10.2%).
|
UG HEALTHCARE
- We cut our FY23e PATMI by 39%. Our expectations are that stable glove prices are unlikely. Competition from China continues to depress nitrile glove prices globally. Demand is also affected by overstocking and slower demand post-pandemic.
UG’s strength is the ability to source low-priced gloves from other manufacturers for its trading business. We downgrade our recommendation from BUY to NEUTRAL and lower our target price from S$0.32 to S$0.20. The target price is pegged to a discount to the Big 4 glove makers or 5x FY22e PE. The company is still trading below book value with net cash of S$84mn.
Read More ...
|
|
Hong Leong Financial Group (HLFG MK)
FY22 results within expectations
BUY maintained
HLFG’s results were within expectations whereby higher earnings from HL Bank were offset by lower contributions from insurance and investment banking. Our FY23/FY24E net profit for HLFG are raised by 2% each following our earnings upgrade for HL Bank; we introduce FY25E. Our SOPderived TP is raised marginally to MYR22.35 (+25sen) to factor in a higher TP for HL Bank and a higher embedded value for HLA.
Read More ...
|
Sime Darby Plantation (SDPL MK)
A substantial one-off land disposal gain for FY23E?
Potentially higher DPS in FY23E
We are positive on the potential disposal of Sungai Kapar estate (near Bandar Bukit Raja in Klang) measuring 948.826 acres for MYR618m; equivalent to MYR1.61m per ha or ~MYR14.95psf (before conversion). By our rough estimation, the disposal is likely to net SDPL a one-off gain of MYR519m-535m or 7.5-7.7sen/sh. Keeping HOLD and RNAV-TP of MYR4.42 on 0.4x RNAV peg. We prefer KLK MK (BUY, CP: MYR22.34, TP: MYR28.10).
Read More ...
|
