| PHILLIP SECURITIES |
PHILLIP SECURITIES |
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Q & M Dental Group Ltd Data-driven treatments can commence
2023 adjusted PATMI exceeded our expectations at 121% of forecasts. Operating margins recovered from higher revenue per patient and more stable employee expenses. Associates also turned around from losses the prior year.
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Singapore REITs Monthly: Feb24 Expectations of rate cuts pushed to 2H24
The S-REITs Index fell 5.1% in February, following the 4.4% decline in January after rate cut expectations were pushed to 2H24. The top performer for the month was Cromwell European REIT (CERT SP, non-rated) – it gained 2.1% after commendable results, with DPU falling only 8.7% despite higher finance costs and the absence of contribution from redevelopment and €197mn of asset sales. The worst performer was Keppel Pacific Oak US REIT (KORE SP, non-rated) - it fell 55.4% after halting distributions to conserve capital. The overseas retail sub-sector was the top performer in February, falling 2.7%, lifted by Sasseur REIT (SASSR SP, BUY, TP S$0.87) which reported strong outlet sales growth (+31.9%). The worst performing sub-sector continues to be overseas commercial. It fell another 19.3% after falling 13.2% the month before, dragged down by Singapore-listed US office REITs.
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CGS CIMB |
CGS CIMB |
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Frasers Logistics & Commercial Trust Back to inorganic growth
■ FLCT to acquire four German properties from sponsor at an agreed property purchase price of €129.5m (on a 100% basis). ■ DPU and NAV accretive transaction while improving portfolio metrics. ■ Maintain Add rating with an unchanged TP of S$1.27.
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Seatrium Ltd Can STM achieve its targets before FY28F?
■ We believe STM will be able to achieve its target S$1bn EBITDA in FY26F, two years ahead of its scheduled target date of FY28F. ■ Key financial targets set at STM’s inaugural investor day include EBITDA of at least S$1bn, ROE of at least 8%, and revenue of S$10bn-12bn, by FY28F. ■ STM also intends to sustain a net debt/EBITDA ratio of 2-3x by FY28F (FY23: 3.2x), as well as S$200m in procurement savings. ■ We believe annual win rates of S$8bn-10bn p.a. are likely in FY24-26F. Execution and order momentum are key. Maintain Add and TP of S$0.14.
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| LIM & TAN | LIM & TAN |
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Dyna-Mac ($0.355, down 0.5 cents) stands as a prominent frontrunner amidst the ongoing supercycle in the O&G industry, poised to capitalize on the anticipated prolonged industry upswing. With a focused experƟ se in topside module fabrication for FPSOs, Dyna-Mac has not only clinched substantial orders but has also expanded its operational capacity to fulfi ll its burgeoning order book. We expect further even more contract wins, margin expansion and increased revenues and profi tability for Dyna-Mac in FY24. With FPSO charter rates trending up and CapEx pouring in due to lack of FPSO supply, pipeline of FPSOs remain strong and we thus expect Dyna-Mac to secure additional orders in FY24. With bigger capacity and orders, we believe a margin expansion is also in place due to Dyna-Mac’s fi xed operaƟ ng structure. Other than enjoying the current tail winds and having a robust orderbook, Dyna-Mac also maintains a strong net cash posiƟ on (c.59% of its market cap). Dyna-Mac sƟ ll has signifi cant upside with its undemanding valuations at 14.3x FY24 PE. Dyna-Mac’s market cap stands at $368.1mln and currently trades at 14.3x FY24 PE. Dividend yield stands at 2.3% and we currently recommend a BUY on Dyna-Mac with a TP of $0.45
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SATS Ltd ($2.55, down 0.01), a global leader in gateway services and Asia’s pre-eminent provider of food solutions, today announced that its wholly-owned subsidiary, Worldwide Flight Services Inc. (“WFS”), has sold Maytag Aircraft LLC (“Maytag”) to Albion River LLC for an enterprise value of US$ 46 million. Maytag provides aircraft fuelling services, air terminal and ground handling services, and base operations support exclusively to the US Department of Defence in the US and overseas. Maytag operates on a standalone basis and outside of the Group’s core businesses and competencies. The sale of Maytag is in line with SATS’ strategy, following the acquisition of WFS, to streamline operations, deliver synergies and strengthen its balance sheet. We see SATS Ltd as a strategic way to play the post Covid-19 recovery play on the travel and tourism markets and consensus is expecting a strong profi t rebound for March’24 and March’25 to $56mln and $161mln respectively, translating to a forward and prospective PE of 68x and 24x. Management hinted of a resumption of dividend payment soon. Bloomberg consensus 1 year target price of $3.16 implies a potenƟ al return of about 24%. ACCUMULATE. |
