buy sell hold 2021



CapitaLand Ascott Trust

Occupancy recovery is next RevPAU kicker


■ 1Q23 RevPAU at 1Q19 levels but more room for occupancy recovery (1Q23: c.70% vs historical average of 85%) as China airline capacity normalises.

■ Corporate/leisure segments have normalised to historical levels of 45%/55%.

■ Reiterate Add. 


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Progressing steadily


■ 1Q23 gross revenue/NPI were in line at 24.4%/25% of our FY23F forecast.

■ ELOG achieved positive 7.3% rental reversion in 1Q23, optimising its portfolio for growth.

■ Reiterate Add rating with an unchanged TP of S$0.39. 


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iFAST Corporation Ltd

Risk-off sentiment persists


■ Continued AUA growth and net inflows are key positives of 1Q23 earnings.

■ ePension in HK is progressing, but we think FY24F (vs. 4Q23F) is a more realistic timeline to factor in more material contributions as it regains ground.

■ Reiterate Reduce with TP unchanged at S$3.50. We think persistent risk-off sentiment amid interest rate uncertainty may cap trading volume growth. 


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Property Devt & Invt

Putting the lid on investment demand


■ Government announced higher ABSD, aimed at cooling investment demand.

■ We lower our 2023F private home price and volume projections.

■ Sector rating under review, our top pick is CLI. 


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UOB Group ($29.26, down 0.14) has posted a record S$1.6 billion in core net profit for the first quarter of 2023 (coming in above expectations), up 74% compared with the same period last year, delivering resilient performance with continued income growth. Net interest margin expanded 56 basis points driving net interest income up by 43%. Noninterest income surged on record high trading and investment income, which more than offset the decline in net fee and commission income. The Group’s 1Q23 performance was underpinned by growth across wholesale, global markets and retail businesses. On a quarter-on-quarter basis, wealth management fees rebounded strongly from improved investor sentiments. Credit card fees also sustained momentum. Credit costs in 1Q23 stayed within expectations at 25 basis points, with nonperforming loan (NPL) ratio stable at 1.6%. The Group’s balance sheet remained robust with adequate liquidity and Common Equity Tier 1(CET1) ratio at 14.0%. 

While UOB’s 1Q’23 performance came in better than expected, we believe that consensus will choose to remain conservative given the just announced new property cooling measures in Singapore as well as moderating NIM due to peaking interest rates in the USA coupled with recessionary concerns. Nonetheless, we maintain an “Accumulate” rating given its undemanding valuations of 9x PE, 5.1% dividend yield, 1.2x price to book and 15% upside to consensus target price of $33.55.




Frasers Centrepoint Trust (FCT SP)

1HFY23: Riding On Resilient Domestic Economy In Singapore


FCT achieved positive rental reversion of 4.3% (average vs average) for 1HFY23. Committed retail occupancy also improved 0.8ppt qoq to 99.2% in 2QFY23. FCT’s suburban malls cater to basic necessities and benefit from hybrid work arrangement. It benefits from buoyant domestic consumption despite the gloom relating to uncertainties in the external economies. It provides a defensive FY23 distribution yield of 5.5%. Maintain BUY. Target price: S$2.52. 


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