ANALYSTS SAY: Buy, Sell, Hold (2 Nov)

CGS CIMB

LHN Logistics
New initiatives to kick in from FY23F

■ 2HFY9/22 net loss of S$4.9m (2H21: S$2.0m profit) was below expectations due to higher staff costs and unexpected write-offs.
■ Commencement of the new ISO tank depot is expected by end-Jun 23. Myanmar container depot has commenced operations earlier-than-expected.
■ We lower our FY23-24F EPS by 22-27% on account of higher opex. We reiterate our Add call with a lower TP of S$0.16, based on 8.4x CY23F P/E.

Read More ...

Japfa Ltd
No reprieve from margin compression

■ 3Q22 core net profit of US$11.4m brought 9M22 core net profit to US$66.6m, below expectations at 68.9%/66.6% of our/consensus FY22F estimates.
■ 3Q profitability was dragged down by APO, with resurgence of African Swine Fever (ASF) affecting ASPs, compounding the challenging cost environment.
■ Reduce FY22-24F EPS by 14-21% on lower APO margins. We reiterate Add and cut our SOP-basedTP to S$0.72, with value locked behind AAG’s IPO.

Read More ...

PHILLIP SECURITIES

FIRST SPONSOR GROUP LIMITED
Dongguan projects see better sales

SINGAPORE | REAL ESTATE | 3Q22 RESULTS
 No financials provided in a voluntary 3Q22 business update.
 Housing policy relaxation measures in Dongguan drove sales higher. Time Zone saw faster sales in 3Q22 vs. 1H22.
 The Group’s European property holdings (PH) segment saw stronger performances for both its office and hotel portfolio.

Read More ...

CapitaLand Ascott Trust
Rebound underway

SINGAPORE | REAL ESTATE (HOSPITALITY) | 3Q22 Results
 No financials provided in this business update. 3Q22 gross profit is at c.90% of preCOVID-19 levels. Portfolio RevPAU jumped 88% YoY to S$132 due to higher average daily rate and occupancy (>70%), and is c.87% of 3Q19 pro forma RevPAU.
 76% of debts at fixed rate. Every 50bps rise in interest rates would impact DPU by c.2%

Read More ...

CapitaLand Ascott Trust (CLAS SP)
3Q22: Ideal Mix Of Recovery Potential And Resilient Balance Sheet

CLAS’ portfolio RevPAU recovered 88% yoy and 6% qoq to S$132 in 3Q22, which is 87% of pre-pandemic levels on a pro forma basis, due to higher occupancy (>70% in 3Q22) and ADR (+40% qoq). China and Singapore recorded strong sequential growth, while Australia and the US continued to perform at close to pre-pandemic levels. Aggregate leverage was healthy at 35.8%, while cost of debt was stable at 1.7%. 2023 distribution yield is attractive at 6.5%. Maintain BUY. Target price: S$1.27.

Read More ... 

Japfa (JAP SP)
9M22: Results Below Expectations; Weakness Across All Sectors

Japfa’s 9M22 core PATMI of US$66m (-46% yoy) was below our expectations, forming 63% of our full-year forecast. 3Q22 core PATMI of S$12m fell 58% qoq as high feed costs affected both the Indonesia poultry (-45% qoq) and China dairy segments (-24% qoq). Vietnam continued to incur losses of US$4m in 3Q22 as the resurgence of ASF weakened its swine business. We cut our 2022 and 2023 EPS by 27% and 39%
respectively. Our SOTP-based target price is cut by 10% to S$0.57. Maintain HOLD.

Read More ...