|PHILLIP SECURITIES||CGS CIMB|
KEPPEL DC REIT
Keppel DC REIT
In anticipation of acquisitions
SINGAPORE|REAL ESTATE(REIT)|3Q20 UPDATE
9M20 DPU of 6.73 cents in line, forming 71.3% of our FY20e DPU estimate.
Portfolio metrics healthy: long WALE of 7.2 years, portfolio occupancy of 96.7% and interest coverage ratio of 12.7x. AEI and rental escalations to provide organic growth.
Reiterate NEUTRAL with a higher DDM-based target price of S$2.91 from S$2.57 after incorporating S$500mn of acquisitions for 1Q21e. Despite strong metrics and futureready asset classes, reiterate Neutral as we believe the market has priced in potential catalysts from acquisitions and STI inclusion. Prefer Ascendas REIT (AREIT SP, Accumulate, TP: S$3.63) in the sector.
Frencken Group Ltd
Earnings outlook remains positive
■ STX’s 1Q21 results confirm that revenue opportunities for Frencken’s IA business segment remains intact.
■ We are also positive on the outlook for Frencken’s semiconductor business segment.
■ We reiterate our Add call with a higher S$1.25 TP as we roll over to FY22 core EPS on a higher 11x P/E peg.
iFAST Corporation (IFAST SP)
3Q20: Results In Line; Solid AUA Growth; Downgrade To HOLD
Fintech firm iFAST’s 3Q20 net profit (+151% yoy) reached another quarterly peak on strong growth in AUA to a record S$12.59b. Management reaffirmed its AUA target of S$100b in 2028. We are downgrading the stock to HOLD as current share price offers less than a 10% upside to our target price of S$3.34.
Mapletree Commercial Trust (MCT SP)
1HFY21: MBC I And MBC II Provide Bastion Of Stability
MCT’s 1HFY21 results were above our expectations due to the release of S$15m previously retained in 4QFY20. Gross revenue from VivoCity dropped 40.5% yoy. MBC I and MBC II provided stable contribution of S$63.7m and S$42.1m respectively, equivalent to 48% of total gross revenue. VivoCity is affected by the absence of tourist spending, but MBC I and MBC II will benefit from demand from technology and pharmaceutical companies. Maintain BUY. Target price: S$2.35.
Check out our compilation of Target Prices