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LIM & TAN |
MAYBANK KIM ENG |
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CapitaLand Investment Limited / CLI ($2.63, down 0.02), a leading global real asset manager, has announced the strategic acquisition of the property and corporate credit investment management business of Wingate Group Holdings (Wingate) for A$200 million (S$173 million) plus an earn-out. Wingate is one of the leading and largest private credit investment managers in Australia. It has an extensive Australian track record, having executed more than 350 transactions with more than A$20 billion (S$17.3 billion) in real estate value. With the addition of Wingate, CLI will expand its private credit business and its portfolio in Australia. Wingate will enlarge CLI’s extensive proprietary deal origination networks, enhance its access to more institutional and private high net worth investors and increase CLI’s geographical exposure to Australia.
We maintain our “Accumulate” rating on CLI given its pro-growth and accretive acquisitions as well as monetization program underway where they are recycling capital from matured assets (Ion Orchard) to higher growth assets such as Wingate. We expect some special dividends on top of their usual 12 cents and consensus target is $3.55, implying a potential 1 year return of 35%.
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Asia Aviation (AAV TB) The market leader
Strong earnings growth with multiple upside We re-initiate coverage with a BUY and target price of THB3.40, based on 13x FY25E P/E, the average for low-cost airlines in Asia Pacific. We view the current valuation at 11x P/E as attractive in light of 12% EPS growth in FY24-26E. AAV is our Top Pick among Thai airlines, given its leadership in the domestic market and potential for revenue growth from new international routes. AAV also stands to benefit from lower fuel costs and peaking maintenance expense. A potential merger with Thai AirAsia X and overseas route expansions could offer upside through cost savings and improved passenger connectivity. Downside risks include a quicker-thanexpected recovery in capacity from rival airlines and higher fuel costs.
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MAYBANK KIM ENG |
MAYBANK KIM ENG |
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Malaysia 2025 Outlook & Lookouts Brace up for a volatile year
Navigating opportunities and challenges Navigating Trump 2.0 would be a task in 2025. Although ASEAN will likely not be a priority or a direct target, Malaysia could catch some attention as it has been a beneficiary of trade diversion. Domestically, Malaysia is seeing an investment upcycle wave with non-trade growth engines including tourism, data centres and ASEAN Economic integration as growth supports. We list five themes to play in 2025, mostly centric on consumption and investment realisation. We have a 2025 YE KLCI target of 1,740 (15x 2026E PER), driven mainly by banks, which is our key OW.
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Bangkok Airways (BA TB) Solid earnings growth, but minimal upside
Stable earnings growth with attractive valuation We re-initiate coverage of BA with a BUY and SOTP-based TP of THB28.50. We value its airline business at THB15.60/share, derived from 13x FY25E P/E, and investments in BDMS, BAREIT, WFS - PG Cargo, and BAFS at THB11.10/sh combined. BA has a well-diversified source of revenue (67% airline and 33% recurring income from airports, ground business and dividends), and its airline business operates as a cash cow where competition is limited. However, we see limited upside in top-line growth as its average fare is already near an historical high and capacity expansion is limited. We view its current valuation of 12x P/E (-0.75 SD 10-year average) as reasonable for 11% pa EPS growth in FY24-26E. Key downside risk is potential increase in concession fees paid to AOT for the ground and cargo businesses.
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DBS VICKERS |
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Global semiconductors – 4 themes to watch in 2025
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