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UOB KAYHIAN |
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Q&M Dental Group Embarking on sustainable growth
■ QNM reported FY23 core net profit of S$14.4m (ex. impairment of c.S$2.4m), ahead at 110.9%/121.7% of our/Bloomberg consensus’ FY23F estimates. ■ Core net profit growth of 67.0% hoh in 2H23 suggests that QNM’s focus on driving earnings growth through upskilling its dentists is paying off. ■ We reiterate our Add call, with a higher TP of S$0.37, as we roll forward our valuations, now pegged at 20x FY25F P/E on sustainable earnings growth.
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REITs – Singapore 4Q23 Round-up: The Quarter Of Hard Knocks
For the 21 S-REITs under our coverage, five were above expectations with eight below expectations. The hospitality sub-sector registered the strongest NPI growth, averaging 13% yoy. We saw positive rental reversions across retail, office and logistics properties. Maintain OVERWEIGHT. Focus on blue chip S-REITs with resilient balance sheets. BUY CLAS (Target: S$1.45), FCT (Target: S$2.73), FEHT (Target: S$0.82), FLT (Target: S$1.65) and LREIT (Target: S$0.93).
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MAYBANK KIM ENG |
DBS RESEARCH |
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Malaysia Airports (MAHB MK) Neutral on restructuring of aeronautical charges
Maintain HOLD call and DCF-TP of MYR8.91 In the lead up to the new Operating Agreement which MAHB believes is imminent, Malaysian Aviation Commission (MAVCOM) has restructured MAHB’s aeronautical charges. We believe that the restructuring is earnings neutral. Going forward, MAVCOM will release another consultation paper that will guide the Regulated Asset Base (RAB) model MAHB will employ from 1 Jan 2027 onwards but we maintain our estimates, HOLD call and MYR8.91 DCF-TP as it is currently beyond our investment horizon.
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CapitaLand Integrated Commercial Trust
News Analysis: ECB new anchor tenant at Gallileo
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| LIM & TAN | LIM & TAN |
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CapitaLand Integrated Commercial Trust / CICT (S$1.96, up 1 cent) and CapitaLand Investment Limited (CLI), the joint owners of Gallileo building in Frankfurt (jointly ‘CapitaLand’), announced that they have secured the European Central Bank (ECB), the central bank for the euro area, as the new anchor tenant at Gallileo. At $1.96, CICT is capitalized at $13.0 billion and trades at current dividend yield of 5.5% and 0.9x price to book. Based on Bloomberg 1 year consensus target price of $2.20, upside potential is about 12.2%.
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Sembcorp Industries / Sembcorp ($5.03, down 0.04), through its wholly owned renewables subsidiary Green Infra Wind Energy Limited (GIWEL), has received the Letter of Award (LOA) for a 440MW Inter State Transmission System (ISTS) connected wind-solar hybrid power project (the Project) from SJVN Limited (SJVN). The build-own-operate Project is part of a 1.5GW bid issued by SJVN in September 2023. At its last traded price of $5.03, Sembcorp is trading at undemanding valuations of 10x forward PE, 2.6% dividend yield and 2x price to book. Based on consensus 1 year target price of $6.80, the implied potential upside is 35%. We maintain an “Accumulate” rating on Sembcorp. |
