ANALYSTS SAY: Buy, Sell, Hold (1 Apr)

UOB KH

Keppel Corporation
Merger postponed, logistics monetised

■ The finalisation of the definitive agreement to merge Keppel O&M and SMM
will be postponed to 30 Apr 2022 (from 31 Mar 2022).
■ KEP also successfully divested Keppel Logistics for a cash consideration of
c.S$80m. A small loss is expected from the deal.
■ Reiterate Add and a TP of S$7.20 on SOP valuations. Catalysts: expansion
into renewables, S$2bn-3bn of asset monetisation p.a., and accretive M&As.

Read More ...

Thai Beverage (THBEV SP)
Expect More Relaxation To Boost Tourism And BeerCo IPO To Unlock Value

Thailand has announced multi-stage plans to revive its tourism sector. The kingdom has relaxed testing guidelines for international arrivals while easing domestic alcohol restrictions. We think that THBEV is an undervalued and overlooked COVID-19 recovery play. Higher consumption volumes driven by international tourism and the easing of social distancing measures are expected to boost earnings moving forward, while the expected IPO of BeerCo provides major upside. Maintain BUY with the same target price of S$0.90.

Read More ...

CGS CIMB

MAYBANK KIM ENG

Japfa Ltd
Application to list China dairy business

■ JAP announced that its China dairy business, AustAsia Investment Holdings
(AIH), has submitted an application to list on the Hong Kong Stock Exchange.
■ The listing could realise a valuation of up to US$730m (at 62.5% stake in
AIH) for JAP shareholders based on JAP’s precedent transactions in FY21.
■ Upgrade to Add; change valuation methodology to sum-of-parts (SOP) from
P/E after evaluating potential value to be unlocked from listing AIH. 

Read More ...

Aurelius Technologies (ATECH MK)
FY22 results beat expectations

Maintain BUY with higher TP of RM2.13
ATECH’s FY22 core net profit (CNP) of MYR24m (+53% YoY) came in above expectations. We increase our TP to RM2.13 (+11%), pegged to a higher PER of 15.4x (vs. 13.8x previously) that includes a 10% premium (maintained) to its domestic and regional EMS peers’ CY23 PER average of 14.0x. The PER premium reflects ATECH’s robust earnings growth prospects vs. its peers, its growing exposure to the higher value-added
semiconductor components (MCICs), as well as its operational resilience, owing to its low dependence on foreign labour, unlike its other local peers.

Read More ...

 Banks
Resident support in Feb 22

■ System loans rose 0.8% mom in Feb 22 as domestic loan drawdowns more
than offset the regional contraction. Wholesale trade was a key driving force.
■ Deposits rose 1.1% mom in Feb 22; inflows were mostly FCY deposits by
residents in Singapore. CASA growth was steady. FD placements slowed.
■ Reiterate Overweight. Unabating inflation prompting 50bp hikes in the US
federal funds rate (FFR) is a key upside catalyst for Singapore banks. 

Read More ...