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CGS CIMB |
UOB KAYHIAN |
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Aztech Global Ltd Net profit growth could resume in FY26F
■ We estimate 4Q24F/FY24F net profit declined 30.0%/63.4% yoy as orders from its key customers slowed in 2H24F. ■ The 33.5% share price decline since its 3Q24 business update could have priced in the order decline from its key customer, in our view. ■ We upgrade Aztech to Add (potential order recovery from key customer in FY26F), with a higher TP of S$0.82 as we roll over our valuation to FY26F.
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Far East Hospitality Trust (FEHT SP) 2H24: Continued Recovery Driven By New Attractions And MICE Events
RevPAR for FEHT’s hotels grew 7.7% yoy to S$140 in 4Q24, driven by higher ADR as hotels that exited government contracts ramped up. Revenue from commercial premises grew 4.8% yoy. Visitor arrivals to Singapore are expected to increase 3-12% to reach 17.0m-18.5m in 2025, underpinned by new attractions and MICE events. A low aggregate leverage of 30.8% provides ample debt headroom to pursue acquisitions. FEHT provides a 2025 distribution yield of 6.4%. Maintain BUY. Target price: S$0.76.
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MAYBANK KIM ENG |
OCBC RESEARCH |
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Civmec Ltd (CVL SP) Near-term challenging outlook
1H25 results below consensus; lowering EPS and TP Civmec posted 1HFY25 net profit of AUD26.5m (-16.9% YoY), below our and market expectation at 44%/40% of MIBG/street’s full-year forecast. Consequently, we cut our FY25-27E earnings forecasts by 23% to account for the lower quarterly run rate. Our TP has been reduced to SGD0.89, still based on 11.5x FY25E PER. Notwithstanding the lacklustre results, the group retained its interim DPS of 2.5 Australian cents. We thus maintain HOLD for its decent dividend yield of 5.8%.
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Investment Summary
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| MAYBANK KIM ENG | LIM & TAN |
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Eco World Development (ECW MK) Another land sale to Microsoft
A deal maker amid market uncertainty We are positive on ECW’s latest 138.5-acre land sale in Iskandar Malaysia to Microsoft for MYR694m (or MYR114psf). The land sale will not only accelerate the asset monetisation process and strengthen its balance sheet but also demonstrate management’s capability in securing deals, especially amid the US restrictions on AI chip exports that may slow down data centre demand in Malaysia. We adjust our earnings forecasts by -1% to +31% over FY25-27. Our TP remains intact at MYR2.34 (+1sen) on 0.8x P/RNAV. Maintain BUY.
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PEC ($0.83, unchanged) announced a proposed privatisation of PEC Ltd by Alliance Energy Services by way of a scheme of arrangement. The Offeror and the Company have agreed to implement the proposed acquisition of all the issued and paid-up ordinary shares in the share capital of the Company. In connection with the Acquisition, the Offeror and the Company have on 17 February 2025 entered into an implementation agreement setting out the terms and conditions on which the Offeror and the Company will implement the Acquisition and the Scheme. The scheme consideration represents a 23.5%, 28.6%, 30.6% and 33.3% over the volume weighted average price for the past 1, 3,6, and 12 mth period respectively. PEC’s market cap stands at S$212mln and the deal values PEC at 0.87x PB. We advise shareholders to await IFA report (Deloitte & Touche Corporate Finance) before making any decision. |
