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CGS CIMB |
CGS CIMB |
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Manulife US REIT Moving forward with its disposition strategy
■ MUST today announced that it is selling 400 Capitol for US$117m. ■ While yet to reach its net proceeds target for 2024F and 2025F, management indicated that MUST’s proforma aggregate leverage could improve to 54.2%. ■ Reiterate Add with an unchanged TP of US$0.22.
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Banks Fund deployment on the cards
■ Banking system loan growth was flattish in Aug 24, easing 0.1% yoy as growth in domestic loans was more than offset by a regional decline. ■ While system deposits rose 3.4% yoy in Aug 24, we note a sharp S$21bn pullback on a mom basis – likely a result of fund deployment as FDs mature. ■ Reiterate sector Neutral. We think sequential earnings growth will likely be dependent on the pick-up of fee income as US Fed fund rate cuts set in.
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CGS CIMB |
UOB KAYHIAN |
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REIT Normalising travel & RevPAR growth trends
■ 8M24 RevPAR growth of 3.4% tracked below our FY24F estimate of 5-10% while 8M24 IVA was in line with the upper bound of our FY24F estimate. ■ Strong line-up of MICE events in 4Q24F could provide the 8% yoy RevPAR growth in Sep-Dec 24F needed to deliver 5% yoy RevPAR growth in FY24F. ■ Hospitality SREITs under our coverage are trading at average FY25F DPU yield of c.6.6%, attractive compared to the sector’s c.5.7% FY25F DPU yield.
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STRATEGY – SINGAPORE The Great Wall Of China Stimulus Packages
Clearly concerned about the direction of its economy, the Chinese government released a raft of stimulus measures last week that seemingly changed investor sentiment towards the Hong Kong and China markets overnight. While structural challenges remain, we highlight 14 stocks that have meaningful revenue exposure to China should these stimulus measures prove to be a game-changer. Our top picks for 2H24 remain CLI, GENS, KEP, MINT, OCBC, SCI, STE, VMS and YZJSGD.
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| MAYBANK KIM ENG | LIM & TAN |
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RHB Bank (RHBBANK MK) 6 core areas to focus on
10% ROE target within reach Against our present FY24E ROE forecast of 9.7%, management’s 10% target is within reach if credit cost in 2H24 comes in much lower than expected. We maintain a BUY on RHB, with an unchanged TP of MYR6.80, pegged to a FY25E PBV of 0.9x. Dividend yields of >6% provide support.
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We highlight key points in Civmec Limited’s (S$1.00, up 0.5 cents) FY24 annual report: Executive Chairman James Fitzgerald: Back in 2009, we had a vision: to create a successful, multidisciplined organisation with a variety of diverse and integrated capabilities. One of our early goals was to prove to our customers the value of local manufacturing and encourage more heavy engineering projects to stay within Australian shores. To this end, we are consistently achieving this goal, with an increasing number of clients realising that value, seeking out our services and returning to us, repeatedly, to deliver to their requirements. Capitalized at S$508mln, Civmec trades at valuations of 8.4x forward P/E and 1.2x P/B with a 5.3% dividend yield. Civmec trades at a discount to many of its Australian peers, while the establishment of two new facilities in Pilbara and Gladstone will increase the number of maintenance opportunities available going forward. We maintain Accumulate with an unchanged target price of S$1.20, pegged to 10.1x forward P/E (15% discount to its largercap peers). . |
