| UOB KAYHIAN |
OCBC |
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Thai Beverage (THBEV SP) Lagging, But Recovery Signs Are Brewing
Latest data from the UTCC showed a pick-up in consumer confidence levels to a five-year high. We deem this a positive sign that alcohol consumption may be gradually recovering. Meanwhile, THBEV has restructured its management positions to include designated roles to improve acquired businesses and gain synergies. Upgrade to BUY with SOTP-based target price of S$0.84.
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Starhub Ltd: Staff cuts following strategic review
Starhub has announced that it will be effecting a reduction of ~300 primarily non-customer facing full time employees following its strategic review process. The group also noted that additional roles will be made redundant, with on-going natural attrition and tighter management of contractor roles. A one-off restructuring cost of ~S$25m will be incurred, though provisions have already been made over the course of 2016 and 2017. For the first time, the group highlighted that the broader strategic transformation programme is expected to realise S$210m in savings over a 3-year period from 2019. However, net savings will be lower as the group will be redirecting resources to fund growth opportunities. We believe that the market has been expecting a similar announcement. We maintain our estimates, HOLD rating and FV of S$1.65 for now. |
| CGS CIMB | PHILLIP SECURITIES |
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REIT Hospitality REIT – on the path to recovery
■ RevPAR continued to show positive growth in Aug 2018 (+5.5% yoy, +3.5% year-to-Aug 2018), a good turnaround versus -1.7% in 2017. ■ Pricing pressure is easing. We expect the RevPAR recovery to gain momentum towards end-18 to achieve full year RevPAR growth of 5.1%. ■ Minimal impact from stronger S$. Maintain Overweight on valuations.
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Ascendas REIT Increasing footprint in the United Kingdom SINGAPORE | REAL ESTATE (REIT) | UPDATE
Completed aggregate S$425.8mn acquisitions in Australia and UK during 2Q FY18/19 Disposal in Singapore worth S$13.6mn, recognising a gain of S$2mn Placement of 178mn New Units in September increased unit base by 6.1% Proposed acquisition of second portfolio of 26 logistics properties in UK for S$549.2mn Maintain Accumulate; new target price of $2.82 (previously $2.96)
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Check out our compilation of Target Prices