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CGS CIMB |
UOB KAYHIAN |
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Keppel DC REIT Positive tailwinds in Singapore
■ 3Q24 DPU of 2.501 Scts above at 28.9%/27.5% of our/consensus FY24F. ■ Positive tailwinds in Singapore; 2nd SG lease renewed with >40% reversions. ■ Reiterate Hold. We await clarity on portfolio rebalancing and Bluesea arrears
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Keppel DC REIT (KDCREIT SP) 3Q24: Positive Momentum To Sustain Into 4Q24 And 2025
KDCREIT achieved positive reversion of >40% for the renewal of a major colocation contract in Singapore in 3Q24, a reflection of strong demand and tight vacancy locally. The positive momentum is sustainable as there are several large colocation leases expiring in 4Q24 and 2025. KDCREIT will actively rebalance its portfolio to capitalise on structural trends, such as generative AI, including via acquisitions in Singapore, South Korea and Japan. Maintain BUY with a target price of S$2.50.
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PHILLIP SECURITIES |
MAYBANK KIM ENG |
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Keppel DC REIT Rental reversions remain robust in 3Q24
▪ 3Q24 DPU of 2.501 Singapore cents (+0.4% YoY) exceeded our expectations, achieving 27% of our FY24e forecast. This was due to the exceptionally strong positive portfolio rental reversions, continuing the trend from 2Q24. A major contract renewal in Singapore secured a positive reversion of over 40%. ▪ Tokyo DC 1 has commenced contributions following the acquisition completion on 31 July 2024. The rental income from the Guangdong DCs continues to be net off via loss allowances, and the impact to 3Q24 DPU was 0.32 Scents.
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Press Metal Aluminium (PMAH MK) ESG2.0: Improved ESG scoring
Above average ESG scoring We revisited PMETAL’s ESG disclosures post-release of its FY23 Annual and Corporate Governance Reports and have assigned an ESG score of 63 (out of 100), which makes its ESG scoring above average, an improvement from its last score of 55 for FY22. We maintain our BUY call on PMETAL with an unchanged TP of MYR5.70, pegged to a 25x PER (approx. -1SD to 5Y 12M fwd mean) on FY25E EPS.
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UOB KAYHIAN |
LIM & TAN |
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SenseTime Group Inc (20 HK) Key Takeaways From 2024 Asian Gems Conference
SenseTime is a leading AI software company focusing on computer vision technologies, serving a broad range of industries. It recorded full-year revenue of Rmb3.4b in 2023, making it the largest computer vision software provider in China with an over 20% market share, according to IDC. The company achieved solid revenue growth of 29% in 1H24, driven by rapid growth in the GenAI business and the smart auto business.
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Keppel DC REIT / KDC REIT ($2.25, up 3 cents) announced its 3Q operational update and reported a good set of results with higher gross revenue in 3Q 2024 mainly due to (i) strong reversions and escalations across portfolio and (ii) contribution from Tokyo DC 1, partially offset by divestment of Intellicentre Campus. KDC REIT’s market cap stands at S$3.8bln and currently trades at 25x forward PE and 1.6x PB, with a dividend yield of 3.9%. Consensus target price stands at S$2.25, representing no upside from current share price. Given the anticipated decline in interest rates, which is likely to benefit both the REIT and technology sectors—areas where KDC REIT has significant exposure—we are encouraged by the company’s robust third-quarter results, backed by the robust outlook for data centers. However, with no upside to consensus target price, we maintain our HOLD recommendation on KDC REIT. |
