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PHILLIP SECURITIES |
UOB KAYHIAN |
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Singapore REITs Monthly: Sep24 DPU is expected to return to growth in 2025
▪ The S-REITs Index rose 3.5% in September, continuing its 4.2% rally from August. The top performer for the month was Manulife US REIT (MUST SP, non-rated), gaining 25.3%, while the worst performer was Frasers Centrepoint Trust (FCT SP, ACCUMULATE, TP S$2.38), falling 3.4%. All sub-sectors posted share price gains in September, attributed to the 50bps interest rate cut by the Fed. The overseas commercial sub-sector was the top performer in September, gaining 9.4%, while the worst-performing sub-sector was retail, which grew by 0.1%.
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Wilmar International (WIL SP) 3Q24 Results Preview: Weak Growth Expected
Wilmar will release its 3Q24 executive financial summary on 30 Oct 24. We expect it to report a core net profit of US$315m-325m for 3Q24 (3Q23: US$323m; 2Q24: US$278m). 3Q is usually the strongest quarter for Wilmar but weaker sugar contributions and muted margins across most segments could result in flat to marginal qoq and yoy growth for 3Q24. After 3Q24, improving margins point to an earnings recovery, but 2024 earnings may track below expectations. Maintain HOLD. Target price: S$3.25.
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UOB KAYHIAN |
UOB KAYHIAN |
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Plantation – Malaysia Higher Palm Oil Prices Likely Offset By Slowing Production In 4Q
CPO prices have rallied ~15% since August to RM4,400/tonne on supply tightness. However, further price upside into the year-end may be capped by a potential production recovery in Indonesia, while CPO now trades at a premium vs other vegoils. Meanwhile, Malaysian planters’ outputs are likely to have peaked in August and could decline both mom and yoy thereafter. We downgrade the sector to MARKET WEIGHT (from OVERWEIGHT) on muted near-term catalysts.
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Automobile – China Weekly: Sales Rebound As Holiday Impact Diminishes; 3Q24 Results Preview
China’s PV insurance registrations grew by 43% yoy/25% mom/50% wow during 7-13 Oct 24. Major carmakers generally saw a rebound in insurance registrations in China last week as the impact of the National Day holiday diminished. PEV market share rose by 3.7ppt wow to 49.1%. This week, we give a 3Q24 results preview for the major auto companies under our coverage (please see last page). Maintain MARKET WEIGHT. Top BUYs: Geely, CATL, Desay SV, Tuopu and Minth.
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| CGS CIMB | MAYBANK KIM ENG |
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Frasers Logistics & Commercial Trust Maiden Singapore logistics property purchase
■ FLCT makes its first foray into the Singapore logistics property sector. ■ The transaction will be debt-funded and projected to be DPU accretive. ■ Reiterate Add rating, with an unchanged TP of S$1.35.
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Malaysia Thematic Chinese tourism - of durians and Fan Bingbing
Consider GENM, GENT, CAPITALA, AAX, KLCCS & PREIT Our channel checks reveal that the recent summer holidays saw Chinese visitor arrivals exceeding even pre-COVID levels. We estimate that Chinese visitor arrivals may surge to 5.0m in 2025 (60% more than 2019) and Chinese tourism expenditure may also surge to >MR30b (2x of 2019). We are not changing our estimates, TPs and calls yet but 2025 appears to be a promising year. Preferred exposures are in the gaming (GENM, GENT), aviation (CAPITALA, AAX) and retail REIT (KLCCS, PREIT) sectors.
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