| PHILLIP SECURITIES |
CGS CIMB |
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Yoma Strategic Holdings Ltd Adapting well to the new environment
Following the pandemic and coup in 2021, Yoma has undergone a major de-leveraging and rightsizing exercise. Net debt has shrunk from US$326mn in September 2021 to US$134mn in September 2023. The company disposed of investment properties, restructured Yoma Central debt, resized F & B operations, lowered manpower costs and generated operating cash flow.
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Grand Venture Technology Ltd M&A strategy continues
■ GVT on 30 Nov 2023 announced the proposed acquisition of ACP for S$17m to obtain in-house surface treatment capabilities. ■ Based on GVT’s 30 Nov 2023 presentation slides in relation to this acquisition, advanced materials could be its next area of M&A interest. ■ We reduce FY23-24F EPS forecasts further (as elaborated below). Reiterate Add with a TP of S$0.62 as we maintain our FY25F EPS forecast.
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CGS CIMB |
CGS CIMB |
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Raffles Medical Group Higher patient load amid the holiday season
■ The Ministry of Health (MOH) reported a rise in Covid-19 infections and other acute respiratory infections (ARIs) in December amidst the holiday season. ■ As a result, RFMD saw a 30-50% increase in patient loads across its clinics and hospitals, according to local media outlet Channel NewsAsia (CNA). ■ 4Q23F earnings should also be bolstered by the opening of a Covid-19 treatment facility (CTF) in Changi Expo Hall 10 in mid-Dec 2023, in our view. ■ We keep our estimates unchanged and reiterate Add with unchanged TP of S$1.20 after rolling forward our valuation to 13x FY25F EV/EBITDA.
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Seatrium Ltd Project cancelled, but still an Add
■ We estimate FY24F EBIT impact of Equinor and BP’s cancelled 1,260MW offshore wind farm substation Empire Wind 2 (EW2) at S$20m-30m in total. ■ Empire Wind 1 (810MW), the other offshore wind farm substation that was awarded together with EW 2, escaped the axe, with work started in 4Q23. ■ We anticipate negative knee-jerk share price reaction, although the cancelled contract of S$250m-300m only forms 1.5% of its S$18.3bn orderbook. ■ We keep our Add call and TP of S$0.19.
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| MAYBANK KIM ENG | MAYBANK KIM ENG |
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Singapore REITs REIT roadmap – higher peaks, deeper valleys
2024 outlook Expectation of continued fall in cost of capital, manufacturing green shoots and cash on the sidelines offers promise. However, with asset values facing downside risk and continued DPU downside as debt reprices and operating costs inch up, bottom-up view is more circumspect. With a winding road to recovery ahead, we stay selective and tactical with CICT, CLAR (liquid large caps) and LREIT (high yielding beta play).
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Dyna-Mac (DMHL SP) Further capacity expansion + bonus warrants
Maintain BUY with lower SGD0.38 TP Dyna-Mac said it bought Exterran Offshore Pte Ltd for USD8.25m which will grant it access to an additional 4.5ha of yard facilities along Gul Road, just beside its own facility. We expect this acquisition to expand capacity by 30% which will be positive. As a result, we lift FY24/25E earnings by 10%. It also issued a 1-for-5 share bonus warrant at an exercise price of SGD0.15/sh, a 53% discount to current share price to reward shareholders. To account for dilution due to the bonus warrants, assuming 100% conversion, our TP is lowered to SGD0.38 from SGD0.51, pegged to a 16.5x FY24E P/E.
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