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UOB KAYHIAN |
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Suntec REIT Deeply discounted assets
Gross revenue for FY23 surged by 8.3% to S$462.7mn, surpassing our expectations by 7.8%. NPI slided 0.8% YoY to S$313.2mn and was in line with expectation at 104.2% of our forecast.Revenue were supported by a rental reversion of 12.3% for Singapore office spaces and a 21.8% rental reversion for Suntec City Mall. Suntec Convention has fully resumed its operations, with revenue surpassing pre-COVID levels by 3.9%.
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Suntec REIT (SUN SP) 2H23: Resiliency From Singapore Office; Recovery From Suntec Convention
Suntec City Office generated NPI growth of 1.8% yoy and achieved positive rental reversion of 13.4% in 2H23. Revenue and NPI from Suntec Convention increased 41% and 39% yoy respectively in 2H23 due to the earlier-than-expected recovery of MICE events to pre-pandemic levels. We did not factor in any capital distribution from past divestment gains in 2024. 2024 distribution yield is fair at 5.6%, although P/NAV of 0.57x is attractive. Maintain HOLD. Target price: S$1.28.
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CGS CIMB |
OCBC RESEARCH |
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Mapletree Logistics Trust Stable performance qoq
■ 3QFY24 DPU of 2.253 Scts is broadly in line at 26.2% of our FY24F forecast. ■ MLT expects China rent reversions to remain negative; meanwhile, it continues to execute on its asset recycling strategy to rejuvenate its portfolio. ■ Reiterate Add rating with an unchanged TP of S$1.88.
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Dyna-Mac Holdings
Investment thesis the company. We revise our fair value estimate from SGD0.505 to SGD0.36 to take into account the issuance of bonus warrants. In our view, existing investors can consider exercising their warrants to avoid dilution and to participate in the company’s future growth.
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| CGS CIMB | CGS CIMB |
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Genting Singapore A positive surprise could be on the table
■ MBS’s hold-adjusted EBITDA (adjusted for win-rate) grew 22.5% yoy and 3.5% qoq to a record-high of US$473.0m in 4Q23. ■ Rolling chip (i.e. VIP) volume grew 2.1% yoy compared to non-rolling chip and slot (i.e. mass) volume growth of 30.0% yoy and 43.9% yoy, respectively. ■ A comparable set of financials from GENS should see qoq growth instead of our expected qoq decline in hold-adjusted EBITDA. Reiterate Add.
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Venture Corporation FY23F net profit could fall 27.9% yoy
■ Venture reports FY23F results on 22 Feb 2024. We think FY23F net profit could fall 27.9% yoy as customers’ orders could remain weak. ■ The overall revenue outlook may continue to remain weak over FY24-25F. Hence, we reduce our FY24-25F revenue forecasts by 1.5-2.0%. ■ We reiterate our Add call with a lower TP of S$15.90 as our FY25F 2.0% cut in revenue forecast leads to a 4.3% decrease in EPS forecast.
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