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UOB KAYHIAN |
UOB KAYHIAN |
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Tiong Woon Corporation Holding (TWC SP) FY24: Miss Expectations, But A Brighter FY25 Is On The Cards
For FY24, Tiong Woon posted earnings of S$18m (+16% yoy), driven by a 6% yoy increase in revenue from its heavy lift operations across Singapore, Thailand, the Middle East and India. This missed our expectation by 14%, on lower-than-expected revenue growth from project delays. Management maintains a positive outlook as buoyant demand for its services is observed in Singapore and its other operating markets. Maintain BUY with a 3% lower target price of S$0.87 (0.62x FY25F P/B).
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Property – Malaysia Say Goodbye To “Ghost Town” – Forest City Is About To Glow Up!
New incentives for the Forest City Special Financial Zone include a 0% tax rate for family offices with RM30m in AUM and a 15% personal income tax for workers, enhancing its appeal over Singapore. Positive trends in Malaysia’s property market, particularly in Kuala Lumpur and Johor, reflect increased transactions and growth in the residential sector, driven by strategic locations and increased vibrancy in the area. Maintain OVERWEIGHT. Top picks are laggards such as Lagenda and IOIPG.
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MAYBANK KIM ENG |
LIM & TAN |
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Heineken Malaysia (HEIM MK) Advantages of being agile
Maintain BUY with an unchanged DCF-TP of MYR28.20 Inflationary pressures have mired consumption patterns within the brewery industry, but the strong following behind HEIM’s core brands and strategic marketing efforts have expanded its product demand at the expense of its competitors. Separately, our ESG score for HEIM is lifted to 65 (out of 100) from 54 in our last review on improved carbon emission disclosures. We keep our earnings estimates, BUY call and DCF-TP of MYR28.20 (WACC: 7%, LTG: 3%) with decent yields of c.6%.
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The Edge reported that the estate of Dyna-Mac’s (S$0.63, unchanged) founding shareholder, Desmond Lim Tze Jong, says Hanwha’s offer price of 60 cents per share “does not adequately reflect the long term intrinsic value of the company”. Lim, who was the executive chairman and CEO of Dyna-Mac, passed away unexpectedly on Oct 26, 2019, at 61. The estate is Dyna-Mac’s single largest shareholder with a stake of around 27%. Dyna-Mac’s market cap stands at S$702mln and currently trades at 9.9x forward PE (ex-cash PE is less than 5x). Given our target price of S$0.715 (consensus target price is between 64cts - 71.5 cts) continues to represent at least a 13.4% upside potential, and the founding family thinks that S$0.60 is not adequate and finally the offer is not yet final, we recommend that investors wait for the IFA’s recommendation to the board of directors and minority investors to make a decision. Maintain “HOLD TIGHT” recommendation on Dyna Mac. |
| LIM & TAN | |
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The Ascott Limited (Ascott), the lodging business unit wholly owned by CapitaLand Investment / CLI ($2.94, up 0.01), today announced 28 new signings year-to-date in Southeast Asia, adding over 3,400 units across its various brands in key destinations. Accounting for more than half of Ascott’s global signings year-to-date, they will augment Ascott’s portfolio in Southeast Asia to over 360 properties – both operational and in the pipeline – across 86 cities in nine countries: Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. This development reflects Ascott’s notable growth trajectory in Southeast Asia, with its portfolio increasing more than fivefold over the past decade, from 13,000 units in 2015 to more than 67,000 today. Additionally, the new signings will mark Ascott’s entry into new cities such as Purwakarta in Indonesia and Kulim in Malaysia. We continue to like CLI due to the strong growth expected with consensus expecting profit to double to $700mln this year and growth another 15% next year to $800mln, translating to a forward PE of 17-18x. With its continuing share buy backs and 20% potential upside to consensus target price of $3.52, we maintain an “Accumulate” rating on CLI.
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