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CGS CIMB |
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PTT Exploration & Production 2H23 operating outlook remains positive
■ We expect PTTEP’s gas sales volume to pick up further in 4Q23F on the restart of Bongkot and B8 gas fields. ■ PTTEP’s average selling price should improve by 2% hoh in 2H23F, given a stronger oil price should offset lower gas price, based on our estimates.
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Telekom Malaysia New retail broadband prices announced
■ Telekom Malaysia’s (TM) new retail broadband prices, while below our expectations, should leave ARPUs tracking within our expectations. ■ Free speed upgrades for existing subscribers should mitigate the impact of price reductions, with subscribers taking the upgrades. ■ Reiterate Add call, with an unchanged target price of RM6.80 (5.7x adj FY24F EV/EBITDA).
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UOB KAYHIAN |
UOB KAYHIAN |
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Link REIT (823 HK) Takeaways From Pre-blackout Conference Call
For LINK REIT’s pre-blackout conference call on 5 October, the key takeaways are: a) operations in 1QFY24 are largely on track, and management expects rental reversion to be in line with expectations, ie positive mid-to-high single digits for Hong Kong retail and slightly negative for China retail; and b) persistently high interest rates would bring both risks (on funding cost and valuation) and M&A opportunities. Maintain BUY. Target price: HK$50.70.
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MyNews Holdings (MNHB MK) Assessing Supervalue’s Competitiveness
We went on the ground to assess MyNews’ Supervalue stores’ competitiveness against that of established incumbents. 99 Speedmart is the cost price leader within the minimart space but Supervalue could eventually be drawn parallel to KK Mart. Supervalue offers a decent avenue of growth but MyNews’ overall prospects continue to remain challenging and its valuations have exceeded its recovery prospects. Maintain SELL with target price reduced to RM0.47.
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LIM & TAN |
MAYBANK KIM ENG |
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Capitaland Ascott Trust / CLAS ($0.92, up 0.5 cts) announced that it has renewed the master leases entered into with Citadines SA in respect of the following properties: (i) Citadines Austerlitz Paris, (ii) Citadines République Paris, (iii) Citadines Maine Montparnasse Paris and (iv) Citadines Antigone Montpellier. The Renewed Master Leases for the Properties are on the same terms and conditions of the existing master lease except for (i) higher rent to be received by the Master Lessors under each of the Renewed Master Leases, (ii) the duration of each of the Renewed Master Leases is 12 years and (iii) there is co-sharing of renovation expense between the Master Lessors and the Master Lessee. Capitaland Ascott Trust’s market cap stands at S$3.4bln and currently trades at 19.6x forward PE and 0.8x PB, with a dividend yield of 6.1%. Consensus target price stands at S$1.23, representing 33.7% upside from current share price. As a result of this deal, pro forma DPS will increase from 5.67 S cts to 5.68 cts. The current price continues to be lower than the previous preferential price of $1.025/unit raised to support their purchases, and given the 1 year potential upside of 33.7% to consensus target price coupled with the re-opening of economies around the world post Covid-19, there are ample opportunities for CLAS to leverage and capitalize on the recovery of the global tourism sector, hence we continue to recommend an “Accumulate” on CLAS.
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Petronas Chemicals (PCHEM MK) Firmer ASPs ahead
Balanced risk-reward; HOLD maintained Risk-reward dynamics for PCHEM remain balanced as we move into 4Q23. Despite S. Arabia and Russia’s decision to extend oil production cuts lending a floor to declining ASPs, we expect PCHEM’s outlook to remain challenging in the near-term. Hence, our thesis of an earnings recovery only materialising in mid-to-late FY24 is maintained. Our unchanged MYR7.00 TP is pegged to 8x FY24E EV/EBITDA, at -0.5SD to LT mean.
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