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UOB KAYHIAN |
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Japfa Ltd Peaked for now
■ At 9.4x CY20F, the market has priced in weaker Vietnam profits after the African Swine Fever (ASF) outbreak in Vietnam since 19 Feb, in our view. ■ But narrower net profit growth in its Indonesia poultry business post 3Q19F, and larger-than-expected disruption in Vietnam are potential downside risks. ■ Valuations could retrace to the -0.5 s.d. level (c.8.0x), until headwinds dissipate. Downgrade to Reduce from Add with a lower SOP TP of S$0.63.
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Thai Beverage (THBEV SP) Tapping On Brand Value
THBEV revealed its business developments in areas such as spirits portfolio management. The group intends to build its brand leadership and distribution reach in 2019. Maintain HOLD with an unchanged SOTP-based target price of S$0.86. Entry price: S$0.78.
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| RHB | DBS VICKERS |
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CapitaLand Mall Trust(CT SP) Funan Opening Fully Priced In; Stay NEUTRAL
Remain NEUTRAL, TP rises by 3% to SGD2.20, 8% downside with 7% FY19F yield. CapitaLand Mall Trust’s share price has performed well YTD – up 6% (S-REITs/STI: +9/+4%), mainly on optimism over Funan Mall’s opening, and the bottoming of retail rental rates. We believe positives are fully priced in and valuations are fair – it is trading at 1.2x P/BV. While retail rental seems to stabilising, we do not expect any strong growth in rates in the near term.
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Frasers Centrepoint Trust Time to catch them all
TP raised to S$2.60 as we see the dual acquisition of stakes in PGIM and Waterway Point revitalising growth. Contrary to market speculation, we believe that FCT has ample capacity to take on both the PGIM investment and its Sponsor’s 33% stake in Waterway Point, and still maintain optimal gearing of c.35%.
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Check out our compilation of Target Prices