buysellhold july.23



Mapletree Pan Asia Commercial Trust (MPACT SP)

4QFY24: Turning Around Towards An Upward Trajectory


MPACT’s Singapore portfolio, including VivoCity, MBC, mTower, Mapletree Anson and BOAHF, has grown from strength to strength. NPI from Festival Walk edged higher by 2.9% yoy in 4QFY24, supported by higher auxiliary income from the atrium space, car park and ice-skating ring. The outlook for offices in Tokyo has improved with vacancies declining across all segments. MPACT trades at an attractive FY25 distribution yield of 7.0% and P/NAV of 0.72x. Maintain BUY. Target price: S$1.89.


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Wilmar International (WIL SP)

1Q24: Results Below Expectations


Wilmar’s 1Q24 results came in below expectations due to lower-than-expected margins from feed & industrial products. The weakness is attributable to weaker-than-expected margins despite the higher sales volume. Note that the China food products segment has continued to improve, with stronger sales volume and better margins. We expect earnings to improve from 2Q24 onwards, especially its feed & industrial products segment. Maintain HOLD. Target Price: S$3.35



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Singapore Telecommunications (ST SP)

Striking A Deal In Regional Australia


Singtel announced an 11-year A$1.6b network sharing deal with TPG in regional Australia, receiving around A$900m of incremental cashflows over 11 years. However, we expect minimal near-term earnings impact for Singtel. The group also announced S$3.1b of non-cash impairment provisions, which will result in a net loss for 2HFY24. This was largely due to a significant S$2b impairment on Optus, dragged by the enterprise segment. Maintain BUY with the same target price of S$2.99. 



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iFAST Corporation Ltd

Consistent ePension contributions


■ 1Q24 HK business contributions (incl. ePension) were steady qoq. Two MPF trustees will be onboarded in mid-24, three in 4Q24F, and seven in FY25F.

■ Underlying AUA growth and platform volumes are improving, albeit gradually.

■ We upgrade iFAST to Add due to the removal of the overhang from the trustees’ onboarding schedule. Our DCF-based TP is unchanged at S$9.10.



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Singapore Airlines

Potential bumper 38 Scts final DPS


■ Reiterate Hold on SIA as we expect SIA to post a good core net profit of S$550m for 4QFY24F and declare a final DPS of 38 Scts at 5.8% yield.

■ Nevertheless, we lower our TP to S$6.76, now based on CY24F P/BV of 1.2x (2 s.d. above mean), down from P/BV of 1.3x previously (+2.5 s.d.).

■ This is because SIA’s PATAMI from FY25F onwards could see pressure from rising yield competition, higher opex pressure and slower capacity growth. 



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Optus at the centre of attention again


■ Singtel guided for 2HFY3/24F net losses due to c.S$3.1bn in impairments, mainly from Optus goodwill (S$2bn) and Optus Enterprise (S$470m).

■ Elevated cash balance of c.S$4bn could indicate some return of cash to shareholders via special dividends or large share buybacks, we think.

■ Reiterate Add at a lower TP of S$2.84, as we adjust FY25-26F core EPS downwards on lower associate profits (mostly Telkomsel and Bharti). 



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