CIMB Advancer Global Limited Integrated services provider ■ Integrated services provider offering foreign domestic workers, cleaning services and security services for commercial, industrial, government and residences. ■ Company aims to grow via M&As. ■ Asset light and cash flow generative business. ■ Targets 50% payout ratio. ■ Based on Bloomberg consensus, ADGL is trading at 17x/13x FY16/17 P/E against EPS growth of -1%/31%. Dividend yields for FY16/17 are 2.9%/3.8%. |
Phillip Securities Nam Lee Pressed Metal Industries Deeply undervalued yield play SINGAPORE | MATERIALS | INITIATION Initiating coverage with "BUY" rating and target price of S$0.69 We opine that Nam Lee has been neglected by the market and is currently trading at a significant discount to what it is truly worth. It is currently priced just 2.2% above its NCAV and this will serve as a price floor for investors, limiting adverse downside price movement. Notwithstanding the potential 86% capital gains, we view the DPS of 3.5 cents as sustainable, and the dividend yield of 9.5% is highly attractive. High-conviction "BUY". |
CIMB Property Devt & Invt Slower launches and sales in Aug ■ Weaker Aug sales on slower new launches. ■ Transaction volumes stabilising, but looming supply and rising vacancy continue to drag on outlook. ■ Concerns factored into stock prices, maintain sector Overweight. Much is priced in, maintain Overweight ● Developer stocks are trading at a 42% discount to the sector RNAV, at the -1s.d. to mean discount and we think that much of the negative newsflow is in the price. In the absence of any immediate policy relaxation catalyst, we think the sector will still trade range-bound. We stay sector Overweight with our top picks of UOL, Capitaland and City Dev. ● Downside risk to our call is a faster than expected upturn in the interest rate cycle which would translate to higher mortgage payments and drag on affordability. |
OCBC Frasers Logistics & Industrial Trust: All primed for growth; initiate with BUY Organic and inorganic growth opportunities Initiate BUY with S$1.09 FV Frasers Logistics & Industrial Trust (FLT) is a Singapore REIT which owns a portfolio of prime industrial and logistics assets strategically located within established industrial and logistics precincts across five states in Australia. As at its listing date, FLT has a high portfolio occupancy rate of 98.3% with a diverse and high quality tenant base spread across a broad range of sectors; while its portfolio WALE is also relatively long at 6.9 years. We believe the current demand-supply dynamics are favourable within Australia’s industrial real estate market, and see ample avenues for FLT to spur its future growth via both organic and inorganic growth drivers. Our DPU forecasts for FY16 and FY17 are 6.2 S cents and 6.7 S cents (based on an exchange rate of A$1.00 = S$1.02), which translate into distribution yields of 6.5% and 7.1%, respectively. Valuing FLT using the dividend discount model (DDM), we derive a fair value estimate of S$1.09. Initiate coverage with a BUY rating. |