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Wilmar International (WIL SP) 1H21: Results Slightly Above Our Expectations
Wilmar’s 1H21 results came in slightly above our expectations. The positive variance mainly came from better-than-expected sugar, oilseeds and grains contributions. 2H21 earnings could come in stronger mainly supported by higher production and higher commodity prices for palm and sugar. Adani Wilmar’s (AWL) potential listing would unlock shareholders’ value; however, it might not be as great as YKA’s listing due to its lower contribution to Wilmar. Maintain BUY. Target price: S$6.40.
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UOB KAYHIAN |
UOB KAYHIAN |
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Keppel REIT (KREIT SP) Potential Enlargement Of Scope And Scale Through Consolidation
Keppel Corp’s proposed privatisation of SPH could lead to KREIT’s potential acquisition/merger with SPH REIT. SPH’s Seletar Mall and The Woodleigh Mall could form part of KREIT’s future sponsor pipeline. A thorough review of feasibility is underway. KREIT has broadened its footprint to CBD fringe and is open to acquiring business park properties, including those at one-north in Singapore and Parramatta in Sydney, Australia. Maintain BUY. Target price: S$1.49.
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Propnex (PROP SP) 1H21: Blockbuster Results, But May Be Tough To Repeat; Downgrade To HOLD
Propnex reported a very strong 1H21 net profit of S$34.4m (+115% yoy), beating our and consensus expectations. All business segments contributed to the strength, and ROE accordingly doubled to over 16%. A bullish S$0.055 dividend was declared. However, with worries that 2021 may be the peak earnings year for the company, we downgrade our recommendation to HOLD. Fair value: S$2.09.
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Check out our compilation of Target Prices
