ANALYSTS SAY: Buy, Sell, Hold (27 Sept)

CGS CIMB

Vicplas International Ltd
Pressured by higher costs

■ FY22 net profit of S$8.8m (-15.0% yoy due to higher operating costs) was in line with our expectations at 98.2% of our full-year forecast.
■ Going into FY23F, Vicplas is working to clear the order backlog from FY22 due to the Covid-19 lockdowns in China.
■ Reiterate Add with an unchanged TP of S$0.27.

Read More ...

Yinson Holdings Bhd
Agogo and Albacora opportunities beckon

■ Reiterate Add, with an unchanged SOP-based TP of RM3.20, as Yinson is on track to win the Agogo and SE-PAJ projects in Angola.
■ Yinson may be in a good position to win Petrobras’ FPSO Albacora.

Read More ...

UOB KAYHIAN

REITs – Singapore
Rate Hikes Have Reached A Crescendo

While the next two rate hikes will be steep, at 75bp on 2 Nov 22 and 50bp on 14 Dec 22, 4Q22 could be the last quarter of pain as the intensity of rate hikes is expected to be modest in 2023. We like hospitality and retail REITs as reopening plays and logistics and data centre REITs as new economy plays. Our bottom-up and diversified BUY picks are ART (Target: S$1.29), FCT (Target: S$2.56), LREIT (Target: S$0.91), MINT (Target: S$3.12) and MLT (Target: S$1.94). Maintain OVERWEIGHT.

Read More ...

Sapura Energy (SAPE MK)
1HFY23: Continued Progress On Reset Plans

SAPE’s 2QFY23 core loss was smaller qoq, despite a poorer performance from SapuraOMV, due to continued progress on claiming back project costs and asset disposals. However, its gearing remains high, and working capital constraint continues to impact execution (delays in rig startups). We still assume SapuraOMV monetisation as a high possibility (vs rights issue), which is factored into our valuation. Retain HOLD and target price of RM0.05. 

Read More ...

Sapura Energy (SAPE MK)
1HFY1/23: In line, in the red

Maintain SELL and MYR0.03 SOP-based TP
SAPE remained in the red for the 6th consecutive quarter, continuously weighed down by legacy issues. SAPE remains vulnerable for its negative mix of stretched balance sheet, tight cash flows, legacy contracts, poor execution and cost overruns. While an operational and financial restructuring exercise is underway, turning around SAPE remains a challenge & a work in progress. We see better value elsewhere for now.

Read More ... 

Land & Houses (LH TB)
So far so good

Maintain BUY, higher TP of THB10.7. Top Pick
LH, a leading high-end developer, remains our sector Top Pick. All of its business units, from residential properties to commercial properties/hotels, have performed impressively since 4Q21 despite rising costs due to inflation. Healthy profit contributions from associates and potential gains from sale of an apartment block in the US add value to its core business. 2H22 is likely to be stronger than 1H22 in almost every aspect. As we roll forward our valuations to FY23E, our SOTP-based TP increases to THB10.70 from THB10.00.

Read More ...