| UOB KAYHIAN |
RHB |
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Alpha Picks: Sticking To Our Guns
Our portfolio rose 2.0% mom in Jun 20, slightly lower than the FSSTI’s gain of 3.2% mom, mainly due to CSE Global’s share price weakness (-9.1% mom). However, the recent emergence of Heliconia as its largest shareholder should put CSE in a stronger position to expand its business. For Jul 20, we stick to our picks as we expect further share price upside to our portfolio.
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Ascendas REIT (AREIT SP) A Solid Industrial Player
Keep NEUTRAL and TP of SGD 3.00, 9% downside. Ascendas REIT remains one of the most defensive industrial REITs with its diversified portfolio and predominant exposure to the business parks sector, which is expected to stay resilient. While we continue to like it for its asset quality and management, current valuation is not attractive enough (1.5x P/BV) in our view. We recommend investors accumulate on pullbacks.
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CGS CIMB |
CGS CIMB |
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Riverstone Holdings Stronger price increases in 3Q20F
■ We reiterate our positive view on RSTON, as we believe the quantum of its ASP hike in 3Q20F could be higher than we previously expected. ■ RSTON will release its 2QFY20 results by early-Aug; we project a strong net profit of RM72m (+54% qoq, +102% yoy). ■ FY20-22F EPS raised by 1.6-25.1%; TP lifted to S$3.90.
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UG Healthcare Corp Ltd Higher ASPs on the cards
■ We reiterate our positive view on UG Healthcare Corp (UGHC) as we believe higher ASPs are on the cards given the surge in glove demand. ■ We now impute 20% ASP qoq growth for UGHC’s OBM gloves in 4QFY6/20F and 1QFY21F into our model. Our FY20-22F EPS is lifted by 9.2%-57.2%. ■ Despite the recent rally, we believe UGHC’s valuation remains attractive at 11.2x CY21F P/E. Reiterate Add with a higher TP of S$2.10.
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Check out our compilation of Target Prices