ANALYSTS SAY: Buy, Sell, Hold (10 Nov)

CGS CIMB

Prime US REIT
Strong leasing momentum

SINGAPORE | REAL ESTATE | 3Q22 Update
 9M22 distributable income (+9.2% YoY) was in line, forming 73% of our FY22e estimate.
 Leasing activity in 3Q22 was close to the previous 2 quarters combined (246.2k vs 1H22 257.5k sq ft), with positive rental reversions of 10.1%. Occupancy remained stable at 89.6%

Read More ...

SATS Ltd
Better operating leverage; likely no SI

■ 2QFY3/23 net loss of S$10m (1QFY23: S$22.5m loss) beat our forecast of S$18m loss; operating losses narrowed to S$8m (1QFY23: S$34m).
■ Likely funding for WFS acquisition: c.S$800m from rights issue, S$700m term loans, c.S$300m cash. Strategic investor (SI) only if favourable long term.
■ Maintain Add and S$3.45 TP, pending definitive funding mix for WFS acquisition, to be out in Nov-Dec with EGM by Jan and completion by Mar 23.

Read More ...

CGS CIMB

SEA Ltd
Riot Games to take back LoL publishing

■ Riot Games will take back LoL publishing rights from Garena effective Jan 2023. We estimate an EBITDA impact of US$36m (2.8% of Garena’s FY23F).
■ Share price could remain weak near-term as investors further price in concerns over SE’s relationship with Tencent given developments YTD.
■ Maintain Hold and TP of US$61.

Read More ...

ISDN Holdings Ltd
3Q22F net profit likely fell yoy

■ We expect ISDN to provide its 3Q22F business update by 15 Nov 2022. We think revenue/net profit could fall by 14.5%/65.1% yoy (due to strong 3Q21).
■ 3Q22F performance is likely to continue to be affected by China’s ongoing Covid-19 lockdowns and unrealised foreign exchange losses.
■ With the challenging economic conditions in China, we further reduce our FY23-24F forecasts and downgrade the stock to Hold.

Read More ...

Genting Singapore (GENS SP)
Less reliant on Chinese visitors post-COVID

Maintain HOLD and DCF-based TP of SGD0.86
Under a ‘blue sky’ scenario where Resorts World Sentosa (RWS) FY24E mass market gross gaming revenue (GGR) recovers to 100% of 2019 levels driven by the return of Chinese tourists, our FY24E earnings for GENS could be lifted by 12% and our DCF-based TP could be raised by 6% to SGD0.91. Note that we do not expect many Chinese VIPs to return to
Singapore due to China outlawing cross-border gambling. We maintain our earnings estimates, BUY call and SGD0.86 DCF-based TP for now

Read More ...

StarHub (STH SP)
DARE+ expenses kicking in

9M22 PATMI met expectation; Maintain BUY
9M22 EBITDA at SGD339.2m and PATMI at SGD88.3m met MIBG expectations at 75%/76% of our FY22e estimates. However, PATMI (-18% YoY) was underwhelming relating to one-off expenses for premier league and ongoing DARE+ investments. Enterprise sales momentum (+16.7% YoY) continued to surge due to contribution from JOS MY/SG and on a wider base after consolidating MyRepublic. We raise our FY23E/24E bottomline forecasts by 6.7%/5.4% to reflect the positive contribution from its newly integrated businesses. As such, we maintain a BUY rating with a slight uptick in our TP to SGD1.33 from SGD1.32, leaving 30% growth potential. 

Read More ...