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UOB KAYHIAN |
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AEM Holdings Ltd Intel fights back
■ We lift FY19-21F core EPS by 6.5-14.5% as Intel seeks to expand its TAM and fight back against competition. ■ We expect 3Q19 net profit to rise by 16% yoy on the back of orders from its customer. ■ Maintain Add. We switch from P/E valuation to P/BV valuation to factor in the cyclical nature of the business. Our target price rises to S$1.44.
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CapitaLand Mall Trust (CT SP) 3Q19: Growth From Funan And Westgate; Upgrade To BUY
CMT reported good results with DPU increasing 4.8% yoy to 3.06 S cents in 3Q19. Funan made its first full-quarter revenue contribution of S$12.5m. Westgate contributed revenue of S$18.8m after completing acquisition of the remaining 70% stake on 1 Nov 18. We seek defensive shelter in CMT due to heightened macro uncertainties. We lower our risk-free rate from 2.5% to 2.0% due to persistently low interest rates. Upgrade to BUY and raise target price to S$2.88.
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MAYBANK KIM ENG |
RHB |
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Mapletree Logistics Trust (MLT SP) Bulking Up Again
Results in line with MKE/consensus, HOLD MLT’s logistics assets continued to stabilise in 2Q20 with DPU up 3.4% YoY on a larger AUM. Its diversified portfolio, backed by recent FY19 deals, is likely to cushion macro uncertainties. Its latest acquisition of seven highspecs assets from its sponsor should boost NLA further by 9.9% and AUM by 5.2% upon completion. The stock however is likely to be capped in the near-term, as equity fund-raising activity raises DPUs by up to 1.3%. Our DPUs are mostly unchanged after some fine-tuning of estimates. Our TP rises to SGD1.60 (COE: 6.9%, LTG: 2.0%). Our top industrial-sector pick remains the business-park-focused AREIT (AREIT SP, BUY, TP SGD3.30), which trades at higher 5.6% yields with stronger DPU growth prospects and the balance sheet for acquisitions.
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Keppel Corp (KEP SP) Temasek Offer – Prelude For Restructuring; BUY
Maintain BUY with new SGD7.80 TP from SGD7.18, 34% upside plus c.4% yield. Temasek’s announcement of a cash partial offer for 30.55% of Keppel shares points to the current market price being undervalued. If successful, Temasek will end up with an aggregate 51% shareholding in Keppel. We believe the partial offer raises the possibility of restructuring at Keppel, which could unlock value. As such, we lower our conglomerate discount to 13% (from 20%), which leads to a higher TP.
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Check out our compilation of Target Prices
