| UOB KAYHIAN |
MAYBANK KIM ENG |
CDL Hospitality Trusts (CDREIT SP)
Weathering The Omicron Variant Wave; Reopening To Resume In 2H22
Singapore’s border and existing VTLs have been kept open despite the government halving capacity for VTLs by air and land starting 21 Jan 22. CDREIT benefits from stable contributions from Grand Millennium Auckland, which serves as a managed isolation facility. We anticipate a rapid recovery from Hilton Cambridge City Centre and The Lowry Hotel in the UK after they weather the Omicron variant wave in 1Q22.
Upgrade to BUY with target price at S$1.42. |
Tenaga Nasional (TNB MK)
Policy uncertainty
Government delays RP3 and ICPT implementation
Electricity tariffs are unchanged into 2022. The unexpected delay to the implementations of both RP3 (2022-2024) and the ICPT (pass-through) mechanism inevitably raises regulatory concerns for Tenaga. Downgrade to HOLD with a lower MYR9.60 TP (DCF-based) as we price in concerns over elevated regulatory risks. We prefer Mega First (MFCB MK, BUY, CP:
MYR3.50, TP: MYR4.30) in the utilities space
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CGS CIMB
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CGS CIMB
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Kimly Group
A prime heartlands gem
■ Koufu received cash offer of S$0.77/share from its founders to take it private,
making it possibly the 3rd F&B company to delist from SGX since 2020.
■ The implied valuation for Koufu is 16x CY22F P/E; we view this as positive to
Kimly, which currently trades at a notable discount of c.13x.
■ Kimly is also in a net cash position, rides on structural growth trends, and
offers a sustainable dividend yield of c.4%. Reiterate Add and TP of S$0.56.
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REIT
Creating an iMPACT
■ MCT and MAGIC have proposed a merger. MAGIC unitholders to receive
S$1.1949/unit consideration comprising MCT units or cash plus units.
■ With its larger debt headroom and asset under management (AUM), the
merged entity could deliver accelerated growth and return in the longer run.
■ Reiterate Hold on MCT and Add on MAGIC.
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Check out our compilation of Target Prices
