| UOB KAYHIAN | CGS CIMB |
Straits Trading Co. (STRTR SP)
A Real Estate-Focused Investment Company
With A Gamut Of Growth Options STC’s diverse investment portfolio spans multiple asset classes and geographies. It has a strong historical track record of capital recycling and has built up a gamut of growth options in various real estate sub-sectors and resources, with hospitality offering a post-COVID-19 reopening play. The recent sale of its ARA stake will see a material uplift in its NAV and underscores STC’s ability to recycle its capital. It will trade at a P/NAV of 0.5x post completion of the sale of is ARA stake.
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Hong Leong Asia Charging towards an electrified future
■ HLA’s PATMI grew to S$40.7m in 1H21 (+110% yoy) on higher diesel engine sales in China and recovery of Singapore’s construction sector. ■ We see temporary weakness for its diesel engine unit in 2H21F post strong pre-buying in 1H, but building material unit should continue to recover well. ■ HLA continues to pivot towards sustainability through R&D efforts in New Energy powertrains. Reiterate Add with lower SOP-based TP of S$1.05.
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UOB KAYHIAN |
CGS CIMB |
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Dialog Group (DLG MK) FY21: Uninspiring; PRefChem Startup And Earnings Recovery To Justify Upside
FY21 results were in line with ours, though missed market expectations. Malaysia revenue continues to be weak. JV terminals were hit by soft storage market conditions and Vopak’s new information on PT2SB’s weak performance. A timely startup of PRefChem (in 3Q21) should alleviate PT2SB’s concerns. New project and terminal growth may stem future earnings disappointments. We think both are catalysts to support share price upside. Maintain BUY. Target price: RM3.40.
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Berjaya Food Berhad Earnings beat for the fourth straight quarter
■ FY6/21 core net profit of RM53.5m beat expectations, mainly due to strongerthan-expected sales and operating margins in 4QFY21. ■ Its Starbucks store base continued to expand by a net of 11 stores in FY6/21. We forecast a reacceleration of store openings upon the lifting of restrictions. ■ BFD remains an attractive recovery play as we exit the toughest form of movement restrictions in Malaysia. Reiterate Add.
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