| RHB |
RHB |
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Thai Beverage (THBEV SP) Upgrade To BUY On Low Price Levels
Upgrade to BUY from Neutral, new TP of SGD0.92 from SGD0.95, 16% upside with c.3% FY20F (Sep) yield. Thai Beverage’s share price has fallen by 11.8% YTD on the back of market volatilities amidst the COVID19 outbreak. We believe the decline in share price is unjustified, as we estimate 60-70% of Thaibev’s products are consumed off-premise – so it is less likely to be affected by the virus outbreak. Due to its strong 1QFY20 results, we upgrade our call to BUY.
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Avi-Tech Electronics (AVIT SP) Superb 2Q20, Likely Stellar FY20F; Keep BUY
Keep BUY with a new DCF-based SGD0.50 TP from SGD0.44, 28% upside with c.6% FY20F (Jun) yield. Avi-Tech Electronics reported a strong 2Q20, with PATMI surging 46.7% YoY to SGD1.4m. The semiconductor sector’s slowdown has likely bottomed out for the company, and its quarterly performance should improve ahead. FY20 ought to be a much better year, with earnings having likely bottomed in FY19. We remain positive on the stock, and lift our TP after adjusting FY20F EPS by +12%.
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| CGS CIMB | MAYBANK KIM ENG |
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ComfortDelGro Quiet streets
■ FY19 normalised NP fell 1.9% yoy, roughly in line at 98%/99% of our/Bloomberg consensus FY19F; but final dividend disappointed (-14% yoy). ■ We expect further earnings decline in FY20F as taxi operations are likely to be hit by the coronavirus outbreak, with CD giving out rental rebates. ■ Reiterate Hold with a lower TP of S$2.08.
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Far East Hospitality Trust (FEHT SP) Weaker DPU Visibility
RevPAR set to fall (again), downgrade to HOLD We cut DPUs by 12-20% following the weaker-than-expected 4Q19 results and as we see weaker income visibility for its Singapore-focused portfolio, despite downside being supported by its master leases. We see demand slowing amidst the Covid-19 epidemic. With weak DPU visibility, we downgrade to HOLD, and reduce our DDM based TP to SGD0.70 (COE 7.1%, LTG 2.0%). We prefer CDLHT (CDREIT, BUY, TP SGD1.75) and FHT (FHT SP, BUY, TP SGD0.80) given their more diversified portfolios, and less demanding valuations.
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