|CGS CIMB||UOB KAYHIAN|
Optus acquires amaysim in MVNO push
■ Optus plans to acquire the mobile service arm of amaysim, Australia’s largest MVNO, for A$250m cash, and launch its all-digital brand Gomo.
■ We see little earnings impact to Optus. However, there may be synergies and this deal removes the risk of amaysim moving to a new wholesale partner.
■ Reiterate Add, with SOP-based target price retained at S$3.10.
Frasers Hospitality Trust (FHT SP)
2HFY20: Resumption Of Domestic Travel Provides Catalyst For Recovery
FHT provides exposure to a global hospitality portfolio with geographical diversity of 15 quality assets across nine key gateway cities in Asia, Australia and Europe. We see potential for recovery in domestic travel in Australia. FHT provides distribution yields of 4.3% for FY21F and 8.8% for FY22F. FHT is trading at a 37% discount to NAV of S$0.63/share. Maintain BUY and target price of S$0.55.
Wilmar International (WIL SP)
Earnings To Continue Be Driven by Strong Sales Momentum And Steady Margins
Reiterate BUY on strong earnings and with Wilmar’s market cap currently at almost 50% discount to that of its subsidiary, YKA. Management is not discounting more corporate exercises to unlock value at its subsidiaries. Despite the special dividend of 6.5 S cents, management had also bought back 18.2m shares. Maintain BUY. Target price: S$5.35.
Singapore Monthly Strategy
Stay focused on the positives
• STI should hold above March low, nears 2380 support • A Biden victory would be positive for China-related stocks
• Not all doom and gloom for travel stocks – SATS, STE, FEHT, CAO
• Yield curve steepens – UOB, selective on S-REITs: AREIT, FCT, CDL HT, FEHT
Check out our compilation of Target Prices