buysellhold july.23



Mapletree Pan Asia Commercial Trust (MPACT SP)

Anchored In Singapore; Deleveraging For Growth In Asia Pacific


MPACT’s Singapore portfolio remains resilient with VivoCity benefitting as the gateway to Sentosa and MBC benefitting from its proximity to the CBD. It has stepped up leasing efforts to backfill vacant space in Chiba, Japan. MPACT has de-risked its balance sheet by deleveraging through the divestment of Mapletree Anson. MPACT trades at FY25 distribution yield of 6.8% and P/NAV of 0.70x, which we deem attractive for a blue chip S-REIT. Maintain BUY. Target price: S$1.68


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Property – Malaysia

Data Centre Frenzy And Record High FDI To Spur The Sector


In 2H24, we expect the outperformance momentum to continue on: a) government policies like NIMP30 and data centre investment incentives boosting land sales for the industrial segment; b) new infrastructure projects (RTS, Penang LRT) enhancing connectivity and investment opportunities; and c) increasing FDI driving growth and demand for industrial and residential properties. Maintain OVERWEIGHT. Top picks: Lagenda, IOIPG and Mah Sing. 



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Netlink’s market cap stands at S$3.2bln and currently trades at 1.3x PB, with a dividend yield of 6.5%. With 78.4% borrowings at fixed rates, Net Debt/EBITDA is 2x. Consensus target price stands at S$0.96, representing 16% upside from current share price. Despite operating in a now higher interest rate environment, Netlink Trust has managed to continuously pay higher DPU, which is partly attributed to their strong, defensive business and high fixed debt rates. We thus continue to maintain an ACCUMULATE rating on Netlink Trust for investors seeking for a defensive yield play





The Ascott Limited (Ascott), the lodging business unit wholly owned by CapitaLand Investment / CLI ($2.64, down 0.01) today announced several major milestones in the European market as it accelerates its global expansion strategy.

We continue to like the strong innovative and future looking management of CLI coming up with defensible new business models to differentiate themselves against new and existing competitors in the market such as the latest new offerings in Europe.

CLI continues with their consistent and aggressive share buy back program with 78mln shares bought around current market price, representing 15.4% of total allowable buy back of shares. Trading at 1x book, 5% yield and with Bloomberg consensus 1 year target price of $3.67, we maintain an Accumulate rating on CLI.


Malaysia Technology

Thematic: The future of the global semiconductor industry


Differing prospects for semicon front vs. back-end

MIBG collaborated with Bloomberg Intelligence (BI) on 14 June for an update on the future of the global semiconductor industry. While the backend is expected to face challenges, we are positive on front-end prospects - driven by growth in leading edge nodes (<10nm) and advanced packaging. We maintain NEUTRAL on Malaysia semicon sector but have selective BUYs on front-end auxiliary players SAM Engineering and Frontken.


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ASEAN Equity Strategy

Nusantara Attraction


Updating on maiden ASEAN Strategy report “Middle Income Momentum”, dated May 17, we upgrade Indonesia to Overweight. A volatile Rupiah and uncertainties around President-elect Prabowo’s strategies to boost growth have weighed on the market, with the LQ45 index now trading on just 12x forward PER, which is -2 standard deviations below 10yr average of 16.6x and the lowest level since May 2020. Per table below, on a tactical (1-3mth) basis, we remain Overweight “middle income trap” Malaysia and Thailand, while flagging stock ideas in Neutral-rated Singapore, Indonesia, Philippines and Vietnam. By-country sector valuation ranges, active funds Overweights/Underweights and MIBG Quants highlights are on pgs.4-9.

Please refer to our bi-weekly ASEAN+ Fortnightly research publication for regularly updated by-country macro/strategy highlights and stock picks.



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