buysellhold july.23



REITs – Singapore

S-REITs Monthly Update (Mar 24)


Interest rates in OECD countries have already peaked. Based on the latest summary of economic projections, FOMC participants expect three rate cuts of 25bp in 2024 and the Fed Funds Rate to ease to 4.5% by end-24. Maintain OVERWEIGHT. Our top picks are hospitality and retail plays, which benefit from continued recovery in visitor arrivals and resilient consumer spending.

BUY CLAS (Target: S$1.45), FCT (Target: S$2.73), FEHT (Target: S$0.82) and LREIT (Target: S$0.93).



Read More ...



Choice Pick From Down Under


The acquisition of 255 George Street is attractive due to: a) strategic location within Core Precinct of Sydney CBD and near major transportation nodes, b) recently refurbished in 2022, c) diversified tenant base anchored by Australian Tax Office and Bank of Queensland, and d) provides high yield of above 6.0%. KREIT’s valuation is attractive with 2025 distribution yield of 7.1% (CICT: 5.5% and Suntec: 6.3%) and P/NAV at 0.67x. Maintain BUY. Target price: of S$1.26. 



Read More ...


  LIM & TAN 

We highlight the following key points from Haw Par Corp’s ($9.73, up 0.05) FY23 annual report:

2023 marked a year of recovery from the Covid-19 pandemic. With the improvement in our Healthcare and Leisure businesses and the increase in investment income from our strategic investments, the Group achieved record earnings of $216.6 million representing a 46% increase from 2022. Group revenue grew by 27% to $232.1 million as demand for Tiger Balm products in Asian markets rebounded due to improved consumer sentiment. 

At $9.73, Haw Par is capitalized at $2.15 billion and trades at 10x PE, 4.1% yield and 0.6x book. Valuations are undemanding, especially comparing its current market cap of $2.15 billion to its holdings of UOB, UOL & other long-term investments of $2.7 billion + cash plus debt securities worth $760 million.

Given Haw Par’s defensive valuations and decent dividend yield, we believe deep-value investors with a longer term view can look to “Accumulate” Haw Par for a cheap entry into its “Prized” “Tiger-Balm” brand.


We highlight the key points from Capitaland Ascendas REIT’s / CLAR ($2.78, up 1 cent) FY23 annual report which was just released:

CLAR continued to record a healthy operational and financial performance in FY2023. This was attributed to our well-balanced portfolio comprising assets in the business space, life sciences, logistics, industrial and data centre sectors across Singapore, Australia, the US and the UK/Europe, as well as our prudent capital management approach which provided liquidity for CLAR to execute its acquisition plans.

CLAR’s market cap stands at S$12.2bln and currently trades at 19x forward PE and 1.2x PB, with a forward dividend yield of 5.8%. Consensus target price stands at S$3.13, representing 13% upside from current share price. We continue to like CLAR for its fundamentally strong and diversified portfolio that can benefit from it’s pivot towards data centres amidst a lower interest rate environment. With inflation peaking and downside risks for REITs minimised, we position CLAR as a liquid large-cap REIT that can benefit from the “soft landing” that the Fed envisions. As such, we maintain an ACCUMULATE rating on CLAR. CLAR anchors an investor’s portfolio while collecting a defensive and steady yield until valuations recover to a pre-COVID high of c.1.6x PB.



Acquiring ‘down under’


Buying 50% of freehold Grade-A Sydney CBD office KREIT proposed acquisition of a 50% stake in 255 George Street for AUD363.8m from Mirvac Funds. The office building has 93% committed occupancy with an average lease to maturity of 6.8 years mostly tenanted to government agencies and a financial institution. The initial NPI yield exceeds 6%. Funded with a mix of AUD and SGD debt, pro-forma DPU accretion will be 1.4% with a higher gearing of 41%. Maintain BUY with unchanged estimates and DDM-based TP of SGD1.00 on an attractive 6.7% dividend yield and 40% discount to book.



Read More ...



Malaysia Banking

5.8% loan growth in Feb 2024


POSITIVE on the sector

Loan growth continues to be fairly robust, rising 5.8% YoY in Feb 2024, which is currently above our full-year projection of 5.1%. Positively, the momentum has been encouraging on both the household and business fronts. We remain Positive on the sector with BUYs on AMMB, CIMB, PBK, HLBK, ABMB and HLFG, in that order of preference. 



Read More ...

You may also be interested in:

You have no rights to post comments

Counter NameLastChange
AEM Holdings2.350-0.030
Best World2.480-
Boustead Singapore0.9500.005
Broadway Ind0.129-0.004
China Aviation Oil (S)0.905-0.010
China Sunsine0.4100.010
Delfi Limited0.900-0.010
Food Empire1.320-
Fortress Minerals0.3150.005
Geo Energy Res0.315-0.005
Hong Leong Finance2.480-
Hongkong Land (USD)2.820-0.050
ISDN Holdings0.3050.010
IX Biopharma0.0480.005
KSH Holdings0.250-
Leader Env0.048-
Ley Choon0.0430.001
Marco Polo Marine0.0710.003
Mermaid Maritime0.142-0.001
Nordic Group0.3250.010
Oxley Holdings0.088-
REX International0.137-0.005
Southern Alliance Mining0.450-0.025
Straco Corp.0.485-
Sunpower Group0.210-
The Trendlines0.069-0.005
Totm Technologies0.0230.002
Uni-Asia Group0.8200.010
Wilmar Intl3.370-0.010
Yangzijiang Shipbldg1.780-0.030

We have 645 guests and no members online

rss_2 NextInsight - Latest News