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

CGS CIMB

Sembcorp Marine
EGM on 16 Feb – change of management

■ SMM today released a circular relating to the acquisition of Keppel Offshore & Marine (KOM) in light of its upcoming EGM on 16 Feb, 11am.
■ New Chairman Mr Mark Gainsborough and CEO Mr Chris Ong to lead the new enlarged group. Mr Wong Weng Sun to remain as senior adviser.
■ We estimate the proforma enlarged book value to be S$8.35bn based on 1H22. BVPS based on the enlarged share base could be at S$0.12.

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ESR-LOGOS REIT
Portfolio rejuvenation continuing

■ 2H/FY22 DPU of 1.54/3.0 Scts is in line, at 51.6%/100% of our FY22F forecast.
■ Benefiting from organic rental reversion, portfolio rejuvenation strategy under way.
■ Maintain Add with a lower TP of S$0.42.

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CGS CIMB

CDL Hospitality Trust
More even recovery as China reopens

■ FY22 DPU of 5.63 Scts (+31.9% yoy) was in line at 96.2% of our FY22F.
■ 4Q22 RevPAR for 13 out of 17 hotels exceeded 4Q19 RevPAR.
■ Reiterate Add. Singapore remains a bright spot for CDREIT.

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CSE Global (CSE SP)
Earnings Accretive Acquisition And Major Contract Wins

CSE just acquired a US radio communication group for US$11m. We view this positively as the acquisition valuation appears attractive and is highly accretive as it could lift CSE’s 2023F earnings by around 20%, assuming Radio One Group’s 2022 earnings can be sustained. In addition, CSE has won two major contracts worth US$87m. We raise our 2023F EPS by 12% to factor in the positive developments. We also raise our target price by 22% to S$0.45 (14x 2023F PE). Upgrade to BUY.

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OUE Commercial REIT
Brightening prospects

■ 2H/FY22 DPU of 1.04/2.12 Scts was below expectations at 38.4%/78.4% of our FY22F forecast.
■ Hospitality recovery and positive reversions to drive DPU growth in FY23F.
■ Reiterate Hold with an unchanged TP of S$0.36. 

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CapitaLand Ascott Trust
RevPAU growth across all markets

■ FY22 DPU of 5.67 Scts (+31.3% yoy) was in line, forming 100.9% of our FY22F. Excluding one-off items, FY22 DPU grew 106% yoy.
■ 4Q22 portfolio RevPAU recovered to pre-pandemic levels, with RevPAU in 5 out of 8 key geographies 3-22% above 4Q19 levels.
■ Reiterate Add. CLAS’s extensive portfolio and sizeable debt headroom should allow a virtuous cycle of portfolio reconstitution, in our view. 

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