| MAYBANK KIM ENG |
UOB KAYHAIN |
|
Genting Singapore (GENS SP) Receives a major lifeline
Maintain BUY and SGD0.84 TP RWS will receive property tax rebates and be paid wage setoffs. We estimate that GENS stands to save SGD83m-SGD203m in FY20. These account for a very helpful 22%-54% of our FY20 earnings estimates which were lowered recently (link) to impute weak revenue due to the Covid19 pandemic. Our earnings estimates, BUY call and SGD0.84 EV/EBITDA based TP are unchanged for now. We continue to like GENS for its high dividend yields (6.5% p.a.) and cheap valuations (0.9x FY20E P/BV).
|
CapitaLand Mall Trust (CT SP) Potential Beneficiary Of Stimulus Spending
CMT benefits from the potential revival of the KL-Singapore HSR project, which is expected to be finalised in 2H20. It has three retail malls, namely IMM Building, JCube and Westgate, which are located adjacent to Jurong East MRT station and HSR terminus station. The three properties accounted for 18% of CMT’s portfolio valuation as of 31 Dec 19. CMT provides an attractive 2020 dividend yield of 6.8% after correcting 24% on a ytd basis. Maintain BUY but lower target price to S$2.72.
|
| UOB KAYHIAN | DBS VICKERS |
|
SATS (SATS SP) SATS To Benefit From Government’s Wage Support And Capital Infusion Into SIA; Upgrade To BUY
Relief measures aimed at the aviation sector should lead to an estimated cost savings of S$35m for SATS in FY21. More importantly, SATS’ key customer will be thrown a lifeline and this will reduce SATS’ risk profile. We estimate flight movements at Changi will dive 92% yoy in 1QFY21 and then gradually improve. If so, SATS could still be profitable in FY21. Upgrade to BUY. Target price: S$3.96.
|
Wilmar International Navigating through rough seas Attractive post the sell down.
The recent share price correction has pulled down Wilmar International’s (WIL) valuation to an attractive FY20 price-to-earnings (PE) of 13.3x, close to -1SD (standard deviation) of its five years PE. Stock is trading below its book. Market has stripped out the potential upside from the listing of its China operations. Although WIL’s margins are vulnerable to the volatility of commodity prices which is the key risk to its short-term earnings, WIL’s valuation at current share price implies that the market has anticipated up to 30% hit on its 2020 earnings.
|
Check out our compilation of Target Prices
