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Ascendas REIT Acquisitions galore
■ Proposed acquisition of US properties, potential purchases in Europe and Australia. ■ AREIT announced S$1,200m equity fund raising to part fund these purchases. ■ Reiterate Add with DDM-based TP of S$3.20.
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Riverstone Holdings Vaccine news overshadows results
■ 3Q20 net profit of RM179m (+96% qoq, 5-fold increase yoy) was 37% above our expectations, due to stronger-than-expected ASP increase. ■ Fundamentals remain solid with further ASP hikes, but recent vaccine newsflow could place a short-term dampener on the share price. ■ However, there remain multiple hurdles to widespread availability of Covid-19 vaccines. Reiterate Add, with lower TP of S$2.50 (17.0x CY22F P/E).
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UOB KAYHIAN |
OCBC |
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Bumitama Agri (BAL SP) 9M20: Results Within Expectation
BAL’s 9M20 net profit of Rp737b was within our expectation but above consensus expectation. The better qoq and yoy earnings were mainly uplifted by better selling prices. We expect BAL to continue to deliver good earnings in 4Q20-1Q21 with better sales volumes and continued leverage on the current high selling prices. However, there might be a potential drawback if the Indonesian government revises the export levy upwards again. Maintain HOLD with target price of S$0.55. Entry price: S$0.50.
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SINGAPORE AIRLINES (SIA SP)
Recommendation : HOLD Fair Value : SGD 3.70
WEAK 1HFY21 BUT LIGHT AT THE END OF THE TUNNEL
Singapore Airlines’ (SIA) 1HFY21 results were significant below Bloomberg’s consensus and our forecasts. 1HFY21 revenue fell sharply to S$1.6b (-80.4% YoY) due to weak passenger flown revenue, partially offset by higher cargo and mail revenue. PATMI reversed from a profit of S$205.6m in 1HFY20 to a record loss of S$3.5b in 1HFY21 on the back of weak operating performances, fuel hedging ineffectiveness and impairment loss. All passenger airlines reported operating losses in 1HFY21 on subdued travel demand. The announcement on vaccine by Pfizer and BioNtech is a positive news for travel related stocks. With the lack of domestic market, however, we expect SIA to recover at a slower pace. We expect a recovery to pre-Covid-19 levels in FY24, assuming a vaccine will be widely available by mid-2021. Our fair value estimate increases slightly from S$3.50 to S$3.70, based on P/B multiple of 0.72x. |
Check out our compilation of Target Prices
