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UOB KAYHIAN |
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Keppel REIT (KREIT SP) Stability From Singapore And Recovery From Sydney
On a same-store-basis, KREIT improved portfolio occupancy by 1.5ppt yoy to 97.0% in 2Q23 by backfilling vacant space ahead of new supply hitting in 4Q23. P/NAV at 0.62x is almost at the low of 0.61x on 23 Mar 20 during the onset of the COVID-19 pandemic. Thus, potential downside from Keppel Corp shareholders selling KREIT units they received in specie could be limited. KREIT provides 2024 distribution yield of 6.9% (CICT: 6.2%, Suntec: 6.6%). Maintain BUY. Target price: of S$1.06.
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Mapletree Industrial Trust (MINT SP) Expansion In Japan Supported By Asset Cycling In Singapore
MINT has successfully expanded to Japan’s data centre market. It plans to recycle assets in Singapore through divestment of business park and light industrial buildings to finance the enlargement of scale in Japan. MINT is close to securing a replacement tenant for its data centre at Brentwood, Tennessee when AT&T’s lease expires in Nov 23. MINT provides FY24 distribution yield of 6.1% (DCREIT: 7.3% and KDCREIT: 4.9%). Maintain BUY. Target price: S$2.76.
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CGS CIMB |
CGS CIMB |
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Petrochemical Better days for olefins still further away
■ ASEAN integrated PE/PP spread recovery seen during Jul-Aug 23 was shortlived, given abundant spare capacity in Asia. ■ We believe SCC’s chemical EBITDA should be able to hold up better than Thai peers’, thanks to resilient PVC spread.
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Siam Cement Difficult outlook likely to continue in 2H23F
■ ASEAN integrated PE/PP spread remains weak at US$89/t in Sep 23, likely leading to operating loss for SCC’s two naphtha crackers, in our view. ■ We expect stronger integrated spread and higher PE sales volume to be the key EPS driver in 2024F. Reiterate Hold.
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LIM & TAN |
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The Business Times reported on CSE Global (S$0.44, unchanged) is fresh from a successful pivot into clean energy projects, the systems integration solutions provider is hungry for more avenues to drive further growth. ] One area that the group has been actively growing is the provision of critical communications services – or closed networks – to government agencies and large multinational corporations. In February, it acquired Florida-based communications solutions company Radio One, in a bid to further its expertise in the area. Radio One provides voice, video and data solutions to consumers. CSE Global’s market cap stands at S$266.0mln and currently trades at 13.2x forward PE and 1.1x PB. We continue to like CSE Global as a stable and proven yield play that is re-experiencing growth with their latest acquisitions and strong order book which provides earnings visibility. Despite their latest rights issue to fund earnings accretive acquisitions, CSE Global has continued to pay a stable dividends of 2.75 S cts/share (translating to 6.3% yield). Order book visibility ($480.3mln) will continue to drive earnings and the easing of global supply chain issues should help accelerate order book recognition moving forward. As such, we maintain a BUY call on CSE Global with a target price of S$0.60, representing 36.4% upside to current share price.
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