PHILLIP SECURITIES

PropNex Ltd
Nice set-up for 2023

SINGAPORE | REAL ESTATE (AGENCIES) | 4Q22 RESULTS
 4Q22 earnings growth of 24% YoY to S$17.8mn exceeded our expectations. FY22 revenue and PATMI were 107%/107% of our FY22e forecast. Despite lower new launches, PropNex successfully pivoted towards the resale and rental market. The higher GST may have also pulled in earlier recognition of some transactions this quarter.
 Rental was the highlight with revenue growth of 69% YoY to S$56mn. Other areas of strength were private and HDB resale. Final dividend was raised by 14% 8 cents and a 1 for 1 bonus issue was announced.

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Raffles Medical Group Ltd
Policies, immunity debt, tourism helped

SINGAPORE | HEALTHCARE | 2H22 RESULTS
 FY22 revenue was within expectation, but PATMI was a massive beat. FY22 revenue and PATMI were 102%/143% of our estimates. The jump in healthcare services earnings was
higher than expected.
 The drop in COVID-19-related revenue was offset by higher margin foreign patients, more elective surgeries, increased GP clinic visitations and additional bed capacity in Changi under the Transitional Care Facilities (TCF).

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PHILLIP SECURITIES

Sheng Siong Group Ltd
New stores, house brands, share gains for growth

SINGAPORE | CONSUMER | 4Q22 RESULTS
 4Q22 results were within expectations. Excluding a one-off marketing rebate of S$6mn, FY22 revenue and PATMI were 101%/100% of our forecast.
 Sales was supported by the return of new stores. The number of new stores increased by three to 67 and raised retail area by 5.4% in FY22.

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Centurion Corp (CENT SP)
2022: Results Above Expectations With PBWA Demand Remaining Strong

CENT reported a strong increase in 2022 PATMI which was above expectations, driven by a broad-based increase in occupancy rates across all its geographies. PBWA remains its largest profit contributor, and demand in Singapore will remain very robust in 2023, underpinning its results for at least the next 12-18 months. Maintain BUY with target price lowered slightly to S$0.43. 

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DFI Retail Group Holdings (DFI SP)
2022: Results Weaker Than Expected, But 2H22 Shows Signs Of Life

DFI’s weaker-than-expected 2022 results with a loss at the bottom line, due to impairments at its associates, belie the nascent recovery seen in 2H22. In particular, 2H22 witnessed sequential improvement in operating profit, operating margins, free cash flow and net debt. With China’s easing of COVID-19 restrictions in late-22, the company’s North Asia business could exhibit better growth in 2023. Maintain BUY. Target price: US$3.72. 

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Mapletree Industrial Trust (MINT SP)
Weighting The Risk Of Non-renewal

Tenants AT&T and Atos intend to vacate from four US data centres, which account for 15.3% of MINT’s total data centre NLA. Two of the data centres at Brentwood, Tennessee (expiry: Nov 23) and San Diego, California (expiry: Dec 24) are fairly large. Our sensitivity analysis indicates FY26 DPU could drop by up to 8.9%. Potential damage could already be in the price with FY23 distribution yield at 5.8% (DCREIT: 6.5% and KDCREIT: 5.2%). Maintain BUY with a lower target price of S$2.79. 

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