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UOB KAYHIAN |
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Bumitama Agri (BAL SP) Valuation Attractive, Look To FY21F; U/G To BUY
Upgrade to BUY from Neutral, higher SGD0.60 TP from SGD0.48, 20% upside and c.3% yield. With the markets in a liquidity-driven rally, we believe cyclical sectors like plantations could be the next play, providing investors with a relatively safe haven, in terms of earnings. Nevertheless, we caution of a possible pullback in CPO prices in 4Q20 and continue to advocate buying stocks which are still trading at decent valuations. We believe Bumitama Agri, being a pure planter, would benefit from the recent price rise, while valuation remains attractive.
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Mapletree Commercial Trust (MCT SP) 1QFY21: Offices And Business Parks Saved The Day
MCT’s 1QFY21 business update was in line with our expectations. Gross revenue from VivoCity dropped 56.7% yoy to S$23.1m, mitigated by newly-acquired MBC II, which contributed S$21.1m. MCT’s office/business parks portfolio provides resiliency and income stability, while we await recovery at VivoCity to gather momentum. Maintain BUY. Target price: S$2.35.
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UOB KAYHIAN |
RHB |
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Frasers Centrepoint Trust (FCT SP) Relative Stability in 3QFY20 Amidst Prolonged COVID-19 Pandemic
Portfolio occupancy eased marginally by 1.5ppt qoq and 2.2ppt yoy to 94.6% despite the onslaught of COVID-19 pandemic. Shopper traffic rebounded after the commencement of Phase 2 of Safe Re-opening, and recovered to 61.1% of last year’s level in Jul 20. Recovery is slowly but surely taking root. Its focus on suburban retail malls and necessity spending, including F&B, enables FCT to weather a prolonged COVID-19 pandemic. Maintain BUY. Target price: S$2.90.
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First Resources (FR SP) Good Company, Fair Valuation
Maintain NEUTRAL, with new SGD1.45 TP from SGD1.35, 4% upside. With markets in a liquidity-driven rally, we believe cyclical sectors like plantations could be the next play, providing investors with a relatively safe haven, in terms of earnings. Nevertheless, we caution of a possible pullback in CPO prices in 4Q20 and continue to advocate buying stocks which are still trading at decent valuations. We believe First Resources is already trading at a relatively fair value, at its historical mean of 14x
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Check out our compilation of Target Prices
