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CGS CIMB |
UOB KAYHIAN |
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ASEAN Strategy
A tale of two cities
■ Ground checks among our Malaysia and Singapore coverage universe indicate that Malaysia could benefit more in the near-term from JS-SEZ.
■ We believe the structure and incentives of JS-SEZ could be announced and rolled out progressively by sector, given the complexity of the agreement.
■ Medium term beneficiaries include Eco World, Sunway Construction, Tenaga, Malakoff, YTL Power, Maybank, CIMB, RHB, SD Guthrie, Genting Plantations, VS Industries, SKP Resources, IHH, KPJ Healthcare, Centurion.
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Elite UK REIT (ELITE SP) PBSA Becomes The Second Engine Of Growth
ELITE has expanded its investment strategy beyond social infrastructure to living assets, such as PBSA and rental housing. It intends to redevelop Lindsay House at Dundee, Scotland and Newport Road in Cardiff, Wales into PBSA. Sponsor Sunway RE Capital owns five PBSA assets in Bristol, Manchester, Sheffield and Southampton, which form an acquisition pipeline. ELITE is a recession-resistant counter-cyclical yield play. Maintain BUY. Target price: £0.38.
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UOB KAYHIAN |
LIM & TAN |
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IJM Corporation (IJM MK) 2QFY25: Contruction Continues To Shine
IJM’s 1HFY25 results beat our expectations on higher-than-expected construction earnings. Otherwise, property contribution remained soft in 1HFY25 due to delayed launches while the infrastructure segment reported losses due to a higher share of losses from overseas associates. Looking forward, margins are expected to improve as IJM recognises construction milestones in key projects. Maintain BUY with an unchanged target price of RM3.60 as we reconfigure our SOTP valuation
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Seatrium ($1.95, unchanged) wishes to provide an update on the status of a legacy litigation involving a majority-owned joint venture company which was commenced and inherited by Seatrium prior to the merger. Seatrium refers to Note 22 to the Company’s audited financial statements in its Annual Report 2023, where it was stated that the Group had assumed certain potential claims relating to a rig contract with a customer. Seatrium’s market cap stands at S$6.6bln and currently trades at 40x forward PE and 1x PB and does not pay dividends. Despite a robust and strong orderbook and that no further provision is required on the above announcement amidst continued share buy backs, Seatrium’s valuations are looking fair at current levels and there is still an outstanding closure on the corruption probe into the “Operation Car Wash” by the Singaporean authorities. As such, we continue to have a “HOLD” recommendation on Seatrium. |
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UOB KAYHIAN |
UOB KAYHIAN |
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TIME dotCom (TDC MK) 3Q24: In Line; Near-term Focus On Capital Management
TIME’s 3Q24 core net profit came in at RM112m (+5% qoq and yoy), in line with expectations. Earnings grew on the back of higher revenue and share of profit from associates. We understand 4Q24-to-date performance has been stable qoq as Oct 24’s strong performance was partly offset by a softer Nov 24 fixed broadband revenue trend. The stock offers an attractive dividend yield of 7% for 2024-25. Maintain BUY. Target price: RM6.00.
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AMMB Holdings (AMM MK) 2QFY25: Positive NIM Trajectory
AMMB’s 2QFY25 slightly exceeded estimates, driven by stronger-than-expected NIM recovery. Maintain HOLD with a revised target price of RM5.74 (0.90x FY25F P/B, 9.8% ROE), up from RM4.77, reflecting earnings adjustments and a FY26 valuation. The new target price implies a P/B +1SD above its historical mean, justified by the group’s stronger capital position and improved dividend potential.
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