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CGS International |
PHILLIP SECURITIES |
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Riverstone Holdings Dividend yield remains attractive
■ RSTON’s FY24 revenue and net profit were in line with our full-year expectations. Total DPS for FY24 amounted to RM0.24. ■ In the healthcare glove segment, US import tariffs on Chinese gloves benefit RSTON, but keener competition in Europe and Asia is a risk. ■ We expect RSTON to continue paying RM0.24 DPS over FY25-27F for an attractive 7.3% dividend yield. Reiterate Add.
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Prime US REIT Unexpected rise in portfolio valuations
▪ 2H24/FY24 DPU of 0.11/0.29UScts (-52%/-88% YoY) were below expectations at 33%/88% of our FY24e forecast. The YoY decline was due to: 1) the manager retaining c.90% of DI for capital expenditure, 2) the divestment of One Town Center in July 24, 3) Waterfront at Washingtonian’s asset enhancement initiative (AEI), and 4) higher finance expenses. 2H24/FY24 DI was 36%/93% of our FY24e forecast.
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PHILLIP SECURITIES |
MAYBANK KIM ENG |
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Raffles Medical Group Ltd Returning to stable growth
▪ FY24 revenue and PATMI exceeded our expectations at 116% /127% of our FY24e estimates respectively. 2H24 adj. PATMI jumped 49% YoY to S$34.9mn. ▪ Revenue rebounded 14% in 2H24 from a recovery in elective surgeries and foreign patients in Singapore and a bounce in China volume. Margins expanded as staff costs stabilised and insurance operations broke even in 2H24
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ISOTeam (ISO SP) Dividend policy signals strong confidence
Maintain BUY and TP of SGD0.09 ISOTeam, a major HDB maintenance player, has reinforced its commitment to shareholder value by committing to a minimum of 30% of its core PATMI as dividends annually going forward. Previously, the policy was only until FY25 and this latest commitment reflects management’s confidence in its business outlook, which is supported by a strong order book. In addition, ISOTeam should benefit from Singapore’s plans to build >50,000 HDB flats over the next 3 years as well as from several new government initiatives.
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| MAYBANK KIM ENG | UOB KAYHIAN |
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Raffles Medical Group (RFMD SP) Recovery in progress
2H24 results in line; U/G to BUY as worst is over RFMD’s 2H24 PATMI of SGD31.6m (+4.3% YoY or +38% if exclude FV gain from investment properties last year) was in line with ours but marginally below consensus. This brought FY24 earnings to SGD62.2m (-31% YoY), which represents 100%/95% of MIBG/street’s full year estimates. Upgrade to BUY with a slightly higher TP of SGD1.03 (LTG: 1.0%, COE: 7.5%) as we roll forward our DCF-based valuation to FY25E. Backed by a strong balance sheet, we are encouraged that RFMD is proactively optimising its capital management structure via higher dividend payout and share buy-back.
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StarHub (STH SP) 2024: Soft Results, DARE+ To End In 1H25
StarHub reported a higher 2024 service revenue (+3.9% yoy) and PATMI (+7.7% yoy), driven by the broadband and enterprise segments. Despite strong customer additions, the group’s mobile segment continues to face ongoing headwinds amid stiff pricing competition. The enterprise segment is poised to drive growth in 2025. Despite a decent 2025 dividend yield of 5.5%, we opine that the group is fairly valued at current price levels. Downgrade to HOLD with a lower target price of S$1.26.
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