| UOB KAYHIAN |
CGS CIMB |
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Keppel REIT (KREIT SP) 2H23: Gaining Better Traction In Australia And Japan
Portfolio occupancy rose 1.2ppt qoq to 97.1% in 4Q23, driven by properties located overseas. Occupancy at 8 Chifley Square in Sydney further improved 2.9ppt qoq to 100%, while occupancy at newly-acquired KR Ginza II in Tokyo went up by a massive 25.5ppt qoq to 100% after securing two new tenants. KREIT’s valuation is attractive with 2024 distribution yield of 6.8% (CICT: 5.4% and Suntec: 5.8%) and P/NAV at 0.71x. Maintain BUY. Target price: S$1.24.
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Seatrium Ltd Toning down our profit expectations
■ We factored in S$250m of write-downs in 2H23F upon company’s guidance of non-cash write-downs of surplus non-core assets and obsolete inventories. ■ Our estimates include closure of some Singapore and overseas yards, provision for contract costs and impairment of PPE and inventory. ■ We widen our losses for FY23F to S$655m (previously S$251m) and cut our EPS for FY24-25F by 35-63% to factor in gradual recovery from 2H24F. ■ Building our assumptions, STM’s BVPS is reduced to S$0.115. Our revised TP is now S$0.164, based on 1.4x CY24F P/BV.
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CGS CIMB |
MAYBANK KIM ENG |
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CDL Hospitality Trust Occupancy to drive the next leg of growth
■ 2H23 RevPAR growth slowed to 3.7% (1H23: 23.3%), but FY23 RevPAR reached 104-144% of 2019 levels in five out of seven of CDREIT’s markets. ■ FY23 DPU missed at 91% of our FY23F on higher net interest & tax expense. ■ Reiterate Add with a lower DDM-based TP of S$1.25.
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Singapore Banks 4Q23: What to expect
Losing steam, but more dividend potential. NEUTRAL DBS is set to report 4Q23 on 07 Feb, UOB 22 Feb and OCBC 28 Feb. We expect overall earnings momentum to slow from a combination of weakening NII and NoII. With no rate hikes since early 3Q23, there is limited NIM upside, especially as funding costs catch up. Similarly, weak growth in North Asia, high financing costs, corporate repayments and a strong SGD is likely to keep loan growth negative. Wealth management is unlikely to see green shoots with fixed deposits keeping funds locked up. On the bright side, expect asset quality to remain benign. Concurrently, high capital levels may encourage special dividends. UOB and DBS have the highest potential for this, in our view
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| MAYBANK KIM ENG | MAYBANK KIM ENG |
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Mapletree Pan Asia Comm.Trust (MPACT SP) Navigating rate and FX headwinds
Steady operations offset by financing challenges MPACT reported 3QFY24 DPU of SGD2.2cts, -1.8% QoQ/-9.1% YoY. 9M DPU of SGD6.62c came in at 76.5% of our FYE. Improving operational performance of local and overseas assets was offset by stronger SGD, higher borrowing costs and absence of one-off gains. Committed occupancies rose across markets. Baring Greater China, reversion was positive. Currency swaps capped funding cost. We raise our estimates factoring in lower funding cost and a lower discount rate. Our TP rises to SGD1.40 from SGD1.25. Maintain HOLD.
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Venture (VMS SP) Safe haven in crazy tech world
Maintain BUY with a higher TP of SGD15.50 We expect FY23E revenue to come in at SGD2.99bn and PATMI at SGD270m. We also expect the 4Q23 results due 22 Feb 2024 will be stronger than 3Q23. Production of some NPIs (new product introductions) likely started in 4Q23 and more are slated for FY24E. In addition, customers’ inventories have depleted and more orders are likely in 2024. However, we expect VMS to face some margin pressure despite expecting a better year ahead. We raise our FY24/25 PATMI forecasts slightly, by 1.2% and 3.8%, which raises our TP to SGD15.50, and maintain BUY.
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