UOB KAYHIAN | MAYBANK KIM ENG |
Axis REIT (AXRB MK) 1H21 met expectations
Maintain BUY 2Q21 results and 2 nd gross DPU of 2.40sen (1H21: 4.63sen) were in-line, with 1H21 core earnings at 47%/48% of our/street’s FY21 estimates. Our earnings forecasts, DDM-TP of MYR2.20 (Ke: 6.5%) and BUY rating (sector’s top pick) are intact. We continue to favour Axis’ active acquisition strategy, namely on industrial properties. Current FY21-23E net DPU yields are 4.6%-5.2%.
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UOB KAYHIAN |
DBS |
Petronas Dagangan (PETD MK) Potential Economic Reopening Beneficiary Despite Higher Subsidies
The sharp oil price uptrend and low opex in 1H21 may offset volume weakness as a result of extended lockdowns. Volumes should recover with easing lockdowns as vaccination rates improve. We upgrade 2021 earnings but remain neutral given the higher cash flow risk from subsidy receivables. However, investors can accumulate on weakness, with upside supported by the reopening of the economy and PETD’s ESG efforts. Maintain HOLD with a higher target price of RM20.40.
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YANGZIJIANG SHIPBUILDING
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