CGS CIMB | UOB KAYHIAN |
CapitaLand Integrated Commercial Foray into Australia
■ CICT has announced the acquisition of two Sydney office properties. ■ Deal further boosts portfolio diversification, in addition to providing DPU and BV uplift. ■ Reiterate Add rating with a slightly higher DDM-based TP of S$2.57.
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STRATEGY – SINGAPORE Alpha Picks: Removing Sea, iFast And Our Tactical Short On Financials, Adding SMM And BRC
Our Alpha Picks portfolio outperformed the STI, declining 4.1% mom vs the latter’s drop of 4.9%. For Dec 21, we have removed our short-term tactical call to short DBS and OCBC, and also removed Sea and iFast. Additions to the portfolio are SMM where we believe the risk/reward has become compelling, and BRC which is a proxy to Singapore infrastructure spending and reopening.
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CGS CIMB |
UOB KAYHIAN |
Alliance Bank Malaysia Berhad Exiting the stockbroking business
■ AIBB has entered into an agreement with Phillip Futures for the proposed disposal of its stockbroking business; this came as a surprise to us. ■ We are neutral on the deal given the minimal one-off disposal gain, and insignificant earnings contributions from its stockbroking business. ■ Retain Hold on Alliance as we see higher credit risks from Covid-19 for the bank relative to its peers; share price supported by dividend yield of 4.7%.
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STRATEGY – MALAYSIA Alpha Picks: Braving The Short Turbulence
Our Nov 21 portfolio performed in line with the FBMKLCI (-3.3% vs -3.1%), as good advances by our picks in early-Nov 21 were foiled by a myriad of reasons. Alpha Picks for Dec 21: CIMB, GENM, MyEG and VSI and Sapura Energy (SELL). We remove GENT, OM Holdings and Scomnet, and add BUY-rated VSI and SELL-rated Sapura Energy. We expect our picks to deliver good investment returns beyond the turbulence created by the US taper tantrum and Omicron variant.
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