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LIM & TAN |
LIM & TAN |
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Sembcorp Industries / SCI ($5.40, down 9 cents) has received the Letter of Award for a 150MW solar photovoltaic project coupled with a Battery Energy Storage System (BESS) of 300MWh (the Project) from Solar Energy Corporation of India Ltd (SECI).
The build-own-operate Project is part of a bid for 2GW inter-state transmission system (ISTS)-connected solar power projects with 4GWh of BESS, issued by SECI.
Capitalized at S$9.6bln, SCI trades at 10.1x forward PE, 1.9x book and 2.6% dividend yield. Bloomberg consensus 1 year target price of $6.84 implies a potential upside of 27% from its current share price. We maintain an “Accumulate” rating on SCI.
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CapitaLand Ascendas REIT / CLAR ($2.55, unchanged) has announced the proposed acquisition of DHL Indianapolis Logistics Center, a modern Class A logistics property, from Exel Inc. d/b/a DHL Supply Chain (USA) (“DHL USA”) for S$150.3 million (US$115.8 million). The Property is located in Whiteland, a submarket in southeast Indianapolis, Indiana, in the United States. Capitalized at S$11.2bln, CLAR trades at 1.1x P/B with a dividend yield of 5.8%. We maintain an “Accumulate” rating on CLAR given its decent yield and potential upside of 25% to consensus target price of $3.19. We like the diversification efforts and also the slight DPU accretion from this deal. |
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MAYBANK KIM ENG |
MAYBANK KIM ENG |
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Thai Market Compass Year Ahead 2025: Policy plays and Trump 2.0 beneficiaries
Positive outlook but expect more volatility We have a positive view on the SET Index with a YE25 target of 1,590. This is based on 16.9x P/E and our bottom-up Index EPS estimate of 94, representing growth of 8.4% YoY. We think improving economic momentum, potential introduction of new policy initiatives and the accelerating China+1 trend are key drivers for Thai market. For stocks, we think investors should focus on secondary sectors and the mid-cap space which benefits from policy plays and Trump 2.0.
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Vietnam Consumer – F&B sector Year Ahead 2025: Calm but steady path
Time for selectivity and quality We maintain a NEUTRAL rating on Vietnam’s F&B sector in view of: 1) relatively unexciting FY25E earnings growth of 8% YoY (vs 17% for VN-Index FY25E EPS growth); and 2) a lack of re-rating catalysts, except Vietnam’s market status upgrade to emerging by FTSE in 2025, which would benefit a few large-cap such as VNM, MCH and SAB. In 9M24, listed F&B stocks have shown mixed YTD performance, driven by external factors like foreign outflows. Most stocks trade at -2SD their 5-Y mean due to significant net foreign selling in 2024. Our stock picks remain market leaders, particularly VNM and MCH, which appear undervalued with stable business models and strong balance sheets. We also highlight SABECO (SAB VN, CP, not rated), which could also potentially be included in FTSE EM indices in FY25.
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