| UOB KAYHIAN |
UOB KAYHIAN |
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Wilmar International (WIL SP) 4Q23 Results Preview: Uncertainty To Cap Performance
Wilmar will be releasing its 2H23 results on 21 Feb 24 after trading hours. We estimate core net profit at US$320m-350m and full-year core net profit at US$1.20m-1.23m, which is 7-10% higher than our but 6-8% lower than consensus expectations. Expect shortterm negative sentiment from the recent announcement of its association with the ongoing alleged China palm oil fraud. Maintain HOLD with a lower target price of S$3.35 (previously S$3.80).
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CP ALL (CPALL TB) Most Resilient Earnings Growth Among Peers
We expect CPALL’s 4Q23 earnings to grow 52% yoy on the back of convenience store improvements and lower interest expenses. 1Q24 earnings are expected to continue delivering impressive growth on a yoy basis. We expect 2023-24 net profit to increase by 33.7% and 16.2% respectively. We like CPALL given its resilient earnings growth and discounted valuation. Maintain BUY. Target price: Bt76.00.
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MAYBANK KIM ENG |
CGS CIMB |
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Farm Fresh Berhad (FFB MK) On the cusp of a recovery
Reiterate BUY with unchanged TP of MYR1.65 We believe that FFB is on track to post better QoQ 3QFY24 earnings on expectations for a step down in whole milk powder costs and resilient product demand. Plans to expand production into other dairy products (eg. liquid growing-up milk, ice creams, butter) also opens up new earnings growth opportunities in the long-run. Maintain earnings forecasts, and BUY with an unchanged TP of MYR1.65, based on 24x CY25E PER.
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IJM Corp Bhd Time to play catch up with Gamuda
■ IJM to leverage its strong balance sheet for more strategic acquisitions. ■ Industrial land in MCKIP will benefit from ECRL and CHEC’s involvement. ■ Reiterate Add, with a higher TP of RM2.88 as we lift EPS forecasts
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| LIM & TAN | LIM & TAN |
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The Edge reported that Frasers Centrepoint Trust ($2.24, up 4 cent) reported improved performance for its malls in 1QFY2024 ended Dec 31 as retail committed occupancy rose to 99.9%. The portfolio’s committed occupancy, excluding Tampines 1 which is undergoing asset enhancement initiatives (AEIs), improved 0.2 percentage points q-o-q and 1.5 percentage points y-o-y, falling only 0.1% shy of full committed occupancy. FCT’s market cap stands at S$3.8bln and currently trades at 20x forward PE and 1x PB, with a yield of 5.5%. Consensus target price stands at S$2.41, representing 8% upside from current share price. While we believe that FCT’s operating performance will remain resilient with annual DPU being defensive at around 12 cents/unit, thanks to incremental contributions from their 25.5% stake in NEX and 10% stake in Water Way Point which will see full contributions in FY24, upside also seems limited given only 8% upside to consensus target price and 1x price to book valuation. We maintain HOLD on FCT for its defensive dividend yield.
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AEM Holdings Ltd / AEM ($2.85, down 0.05) refers to the Company’s announcement dated 14 January 2024 titled “Internal Stock-Taking Exercise – Shortfall in Inventories” (the “Announcement”). Further to the Announcement, the Board wishes to make some clarifications. The Company has been investigating the shortfall in the Group’s inventories since it was initially discovered through its year-end stock take exercise in mid-December 2023. The investigation to date has found no evidence of fraud, illegal activity, or physical loss of inventory Given the notoriously cyclical and volatile share price of technology and manufacturing stocks when earnings outlook is uncertain we would prefer to await further clarity on its growth prospects and profitability before taking a more constructive view. For now we would AVOID it and look elsewhere. |
