buysellhold july.23



LHN Limited

Co-living revenue doubles


▪ 2023 revenue was within expectations, but earnings were below expectations. Revenue and adjusted PATMI were 98%/90% of our FY23e forecasts (excluding logistics). 2H23 adjusted PBT was 5% YoY lower due to reduced sublease gains in the commercial segment.

▪ Co-living revenue and earnings jumped an estimated 115% and 97% YoY, respectively in 2H23. A special dividend of 1 cent was announced from the S$18.1mn gain from the disposal of LHN Logistics. Bulk of the proceeds will be redeployed to expand the co-living franchise in Singapore with a target of 800 keys p.a. for three years (or 30% CAGR).



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Singapore Telecommunications (ST SP)

Most robust telco in the region


Leading communications tech group in Asia

Singtel is Asia's leading communications technology group, operating in a dynamic region that is undergoing rapid and unprecedented digital transformation. The company operates through Australia Optus (~50% of total revenue), Digital InfraCo (3%), NCS (20%) and Singapore Singtel (27%). We think Singtel is making significant strides in restructuring the entire group, monetising assets and shedding unprofitable entities. Concerns about the competitive landscape in Australia and FX headwinds that may impact underlying profits remain. BUY with SOTP-based TP of SGD3.10.



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Eco World International (ECWI MK)

Another dividend windfall in FY24E


Losses in line but sales fell short

ECWI’s 4QFY23 core net loss of MYR27m (vs. MYR54m/MYR26m net loss in 4QFY22/3QFY23) was in line. FY23 property sales and reserved sales of MYR1.3b were 7% below its MYR1.4b sales target for FY23. ECWI has set a MYR850m sales target for FY24 and will likely pay another MYR600m (25sen /shr) as dividend in FY24. We lower our FY24/25E loss projections by -51% to -60%. Our new TP is MYR0.26 (-8sen; on unchanged 0.6x FY24E PBV). ECWI will stay in losses until it decides to launch new projects. HOLD. 



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Mapletree Logistics Trust / MLT ($1.63, up 0.01), is pleased to announce the proposed acquisition of a modern Grade A warehouse located in Farukhnagar, Delhi NCR, India (the “Property”) for a property purchase price of INR900 million (~S$14.5 million).

Ms Ng Kiat, Chief Executive Officer of MLTM, said, “Along with our two existing assets in Pune, the Proposed Acquisition positions MLT strategically to capture opportunities in India, a fast-growing logistics market underpinned by robust domestic consumption and a rising middle class. The Proposed Acquisition is in line with our continued efforts to rejuvenate our portfolio towards high yielding, modern assets.”

We like MLT’s expansion into the Indian market, which is expected to be one of the fastest growing markets in the world. Gearing is still reasonable while DPU would be accretive. At 1.2x book and 5% yield, and 8.6% upside to consensus target price of $1.77, we maintain a HOLD on MLT.


 Time to shine once more - Singapore Office

• Singapore office remains the “star” amid uncertainties

• Likelihood of asset value write-offs appears unfounded with most S-REITs expected to deliver positive surprises and demonstrate resilient portfolio valuations

• Office S-REITs are trading at compelling valuations at -1 SD of mean P/B; position for reversal in interest rate cycle

We prefer KREIT and MPACT while OUECT is our mid-cap pick.




China Sunsine Chemical (CSSC SP)

Compressed Margins Amid Intensified Competition


Sunsine provided a 3Q23 update, reporting a record-high quarterly sales volume (+16.3% yoy). However, lower ASPs and a flexible pricing strategy led to lower 3Q23 sales (-5% yoy). 3Q23 net profit fell 49% yoy, taking 9M23 net profit to Rmb259.6m and missing our forecast. While domestic vehicle sales continue to improve, in the face of stronger competition, we have lowered earnings expectations for 2023-25. Maintain BUY with a 20% lower target price of S$0.460 (from S$0.575). 



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