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MAYBANK KIM ENG |
MAYBANK KIM ENG |
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CelcomDigi (CDB MK) Improving risk-reward
Upgrade to BUY CelcomDigi’s risk-reward profile has turned more favourable, in our view, following the >15% share price decline in the past 3 months, as Malaysia’s second 5G network comes closer to fruition. We believe 5G-capex risk is largely priced-in, and the stock could re-rate when merger synergies begin to manifest more meaningfully (possibly from FY25E onwards). Upgrade to BUY (from HOLD) with an unchanged DCF-based TP of MYR4.50.
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IJM Corporation (IJM MK) Secures 1st data centre job in Johor
Positive development; maintain BUY We are positive on IJM’s latest job win to construct a data centre in Iskandar Puteri, Johor as we believe IJM has the capabilities for high-tech industrial building construction jobs supported by its IBS and spun piles operations. We maintain our earnings forecasts which have imputed job win assumptions. Our RNAV-based TP of MYR3.30 is also unchanged. BUY
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UOB KAYHIAN |
UOB KAYHIAN |
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Valuetronics (VALUE SP) Foray Into The AI Industry With Goal For Further Expansion In The Near Term
VALUE is entering the AI industry via a JV with SinnetCloud Group to provide GPU and AI related value-added services in Hong Kong. VALUE’s JV partner had started presales to a group of potential clients even before forming this JV. VALUE is looking to make further investments in this new business in the near term if it does well. VALUE sees good growth opportunities given limited competition in Hong Kong and the JV partner’s strong capabilities. Maintain BUY. Target price: S$0.78.
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Maxis (MAXIS MK) Positive Earnings Momentum Driven By Core Consumer Business
Maxis will focus on its pillars of strength − mobile, fibre and enterprise − to drive nearterm earnings. A well-executed pre-to-postpaid migration strategy can lift service revenue by 20% and lower customer churn. Together with fixed-mobile convergence and good cost discipline, we expect positive earnings momentum in the near term. Maxis will submit a business plan for the second 5G network, as Malaysia transitions to a dual-wholesale network. Maintain BUY. Target price: RM4.20.
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| LIM & TAN | LIM & TAN |
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Yangzijiang Financial Holding / YZJFH ($0.35, up 0.5 cents) wishes to announce a change to the composition of the board of directors of the company. Mr. Chew Sutat (“Mr. Chew”) will retire as a Lead Independent NonExecutive Director of the Company on 30 June 2024. Pursuant to that, Mr. Chew will cease to be a member of the Audit and Risk Committee (“ARC”), Nominating Committee (“NC”), Remuneration Committee (“RC”) and Investment Committee (“IC”). The Board and management of the Company would like to express their gratitude and appreciation to Mr. Chew for his invaluable contributions to the Company throughout his tenure since the Company’s listing, which includes but is not limited to, his heavy involvement in the establishment of a robust governance framework for the Company, particularly during the critical listing process in April 2022, and his instrumental guidance in shaping the strategic direction of the Company, from an investment manager to the recent diversification of the business in the maritime industry in May 2024. At S$0.35, Yangzijiang Financial is capitalised at S$1.2bln and trades at undemanding valuations of 6.0x forward P/E, 0.3x P/B and 6.3% dividend yield. The appointment of two new board of directors will allow YZJFH to leverage their expertise in the maritime industry following shareholders’ approval to expand into a broader range of maritime-related activities. While investor sentiments continue to look for a recovery in China’s real estate sector, share price may see support in YZJFH’s S$1.4bln cash pile, greater than its current market cap. Given the attractive yield, low price to book and good potential upside of 29% to consensus target price of 45 cents, we recommend an “Accumulate” rating on YZJFH.
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We highlight the key points from Mapletree Pan Asian Commerical Trust / MPACT ($1.22, down 0.01) latest annual report: MPACT’s operational fundamentals, anchored by the enduring strength of our Singapore portfolio, has remained resilient despite challenges faced by the broader REIT industry. Throughout FY23/24, the operating landscape was marred by geopolitical tensions, high energy costs, and unrelenting inflationary pressures, compounded by global economic instability. The US Federal Reserve’s aggressive monetary tightening, with 11 consecutive rate hikes since 2022, has pushed interest rates to their highest levels in over two decades, ushering REITs into an era of elevated financing costs. Moreover, the appreciating SGD adversely affected REITs with overseas investments, impacting their earnings and asset values when translated back to SGD.
At the last traded price of $1.22, MPACT is capitalized at $6.4bln and trades at 14x PE and 7.5% div yield. Bloomberg consensus target price of $1.55 implies a potential return of 25%. We believe MPACT provides a safe bet to play on the Fed’s upcoming interest rate cuts given its attractive yield and decent upside to consensus target price and also defensive asset portfolio. We maintain an Accumulate rating on MPACT. |
