| UOB KAYHIAN |
CGS CIMB |
|
Singapore Press Holdings (SPH SP) Unexpected Drastic Dividend Cut By SPH REIT, Downgrade To HOLD
SPH REIT announced a DPU of 0.3 S cents, a massive cut of 79% yoy in light of the challenging nature of retail malls posed by the COVID-19 outbreak. Separately, SPH also announced that its student accommodation expects a loss of £4m-8m from refunds made to students. The unprecedented, accelerated nature of the COVID-19 outbreak is uncovering risks for SPH’s recurring income. Downgrade to HOLD with target price cut by 22% to S$1.61. Entry price: S$1.40.
|
SPH REIT Tough times ahead
■ 1HFY20 NPI up 18% yoy but 1HFY20 DPU declined 39% yoy to retain cash for the uncertainties ahead. ■ Balance sheet is strong enough to sail through tough times. ■ Reiterate Add. The stock is trading at 0.7x P/BV.
|
|
CGS CIMB |
RHB |
|
Telco - Overall TPG launches commercial service, finally!
■ TPG Telecom has finally launched commercial services with an attractive S$10/month SIM-only plan, which comes with a 50GB quota. ■ This is within our expectations, and we do not see a spike in TPG subs. TPG will likely be confined to the secondary SIM market over the next two years. ■ Reiterate Overweight on Singapore telcos; top sector pick: Singtel
|
ComfortDelGro (CD SP) FY20 Loss For The Taxi Unit Expected
Still NEUTRAL with new SGD1.54 TP from SGD2.25, 5% upside and 5.6% yield. The rental rebate extension offered to taxi drivers should translate into a FY20 loss for the taxi unit. Lower rail ridership – due to several factors – implies lower margins for the public transport business. We cut FY20-21F profits 17% and 10%. After a 38% YTD share price decline, ComfortDelGro now trades at 14.2x FY20 P/E, close to its 15x historical pre-COVID-19 average. We await the pandemic’s easing before turning positive on earnings and share price outlook.
|
Check out our compilation of Target Prices
