| PHILLIP SECURITIES | KGI FRASER |
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Don Agro International Ltd Your source of bread and butter
Don Agro International (Don Agro) is one of the largest agricultural companies in Russia's Rostov region. It has a stable track record of profitability over the last five years, with net income reaching a record in 2020. We expect Don Agro to outperform again this year on the back of strong commodity prices for wheat and corn that are at their highest since 2014. We initiate with an Outperform recommendation and a DCF-backed target price of S$0.64.
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MAYBANK KIM ENG |
UOB KAYHIAN |
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Suntec REIT (SUN SP) More Work Than Play
Better fundamentals, mixed outlook SUN’s 1H21 DPU rose 16.2% YoY, led by the better performance of its office portfolio, which saw maiden contributions from 477 Collins (in Australia) and Nova properties (in the UK). But tightened capacities in Singapore has slowed Suntec mall’s recovery, while negative rental reversions look set to persist into 2H21. SUN’s fundamentals have improved due to its UK diversification efforts, but gearing at 43.1% remains high against peers and history. We maintain our forecasts and DDM-based TP of SGD1.25 (COE: 8.2%, LTG: 1.0%). Stay at HOLD. We prefer CICT (CICT SP, BUY, TP SGD2.55), with catalysts from DPU recovery in 2021, and redevelopment upside.
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ARA LOGOS Logistics Trust (ALLT SP) 1H21: Continued Transformation By Tapping On Sponsor Pipeline
ALLT’s 1H21 results demonstrated resiliency with positive rental reversion of 2.4% and healthy occupancy of 98.2%. It successfully completed its maiden acquisition from LOGOS on 16 Apr 21. ALLT has access to a sizeable sponsor pipeline of more than US$16b, of which more than half is located in Singapore, Australia and China. It is a potential candidate for inclusion in FTSE EPRA Nareit Developed Asia Index. Distribution yield is attractive at 6.1% for FY22. Maintain BUY. Target price: S$1.02.
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