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UOB KAYHIAN |
UOB KAYHIAN |
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Solid Outlook For The Next 12-18 Months
PropNex’s outlook for the next 12-18 months appears solid with stable to higher transaction volumes in the private and HDB markets while the number of new launch units is expected to increase meaningfully based on property developers’ timelines. We note that a number of new launch projects after the US Fed rate cut in September has seen very strong sell through. PropNex offers a defensive yield of 6.4% for 2024. Maintain BUY with target price raised to S$0.98.
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My EG Services (MYEG MK) Concreting E-government Presence; Unravelling Zetrix’s Potential
MYEG’s prospects remain rejuvenated with plenty of emerging catalysts such as earnings growth from Zetrix-related services and involvement in multiple Malaysian egovernment projects. The recent commercial launch of Zetrix cross-border services also provides assurance on stable recurring revenue and healthy cash flows moving forward. We retain our view that risk-reward is appealing on depressed valuations. Maintain BUY with a target price of RM1.42.
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UOB KAYHIAN |
MAYBANK KIM ENG |
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Hong Kong Developers And Landlords Top Developer Leads Strong Sales Rebound In Oct 24; Landlords Continue To Face Challenges From GBA Integration
In Oct 24, the primary property market showed signs of recovery, with a notable increase in transaction volume. Nov 24 may see a pullback in transaction volume on lower highquality new supply. However, we still expect a 3% recovery in property prices in 4Q24- 1Q25, driven by rising rental yields and supportive macro factors. On the other hand, retail landlords continue to face challenges from GBA integration. Maintain MARKET WEIGHT and prefer developers over landlords. SHKP and LINK REIT are our top picks.
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CSE Global (CSE SP) Revenue growth on track
Maintain BUY and TP of SGD0.60 CSE announced SGD565.4m of new orders for 9M24, down 18% YoY, which was slightly disappointing due to one-off large orders secured last year. We understand that a few large orders worth SGD60-80m are potentially delayed in 4Q24. However, 9M24 revenue is up 20.2% YoY to SGD642.8m, which is positive and we expect net margins to improve due to higher operating leverage. We expect order wins to pick up in 4Q24 and FY25, and remain positive on CSE due to its positive outlook and attractive yield of 6.4%. Maintain BUY.
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MAYBANK KIM ENG |
LIM & TAN |
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Mapletree Industrial Trust (MINT SP) Results in line
Stable performance; Maintain BUY MINT’s 2Q25 DPU of SGD3.37cts -1.7% QoQ/+1.5% YoY, including capital top-up, in line with consensus/our estimates. 1H25 revenue and NPI of SGD356.7m and SGD267m are +3.5%/+2.9% YoY. Consistent with 1Q25 results, contributions from the Osaka data centre and positive rental reversions of the Singapore portfolio were partially offset by lingering vacancy impacts of its North America portfolio, higher expenses and divestment of the Tanglin Halt cluster. Management’s strategy is to improve occupancy of the North America portfolio during the re-leasing cycle. We trim our FY25-26 forecasts by 1.3%/0.4% to reflect the movements in leases. Our TP and BUY are unchanged.
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Netlink Trust ($0.915, up 1 cent) announced its financial results for the half year ended 30 September 2024 (“H1 FY25”) and is pleased to report a Distribution Per Unit (DPU) of 2.68 Singapore cents for H1 FY25, 1.1% higher than the previous corresponding period’s DPU, coming in line with expectations. Netlink Trust’s market cap stands at S$3.6bln and currently trades at 34x PE and 1.5x PB, with a dividend yield of 5.8%. Consensus target price stands at S$0.98, representing 6.5% upside from current share price. Netlink Trust has continued to pay higher DPU, which is partly attributed to their strong, defensive business and high fixed debt rates. However, given the limited upside of only 6.5% to consensus target price of 98 cents and also rather fair valuations, we recommend investors “HOLD” Netlink Trust for its defensive and decent dividend yield of 5.8%. |
