ANALYSTS SAY: Buy, Sell, Hold (7 Feb)

CGS CIMB

Keppel Corporation
Urban Development weighs on FY22 earnings

SINGAPORE | CONGLOMERATE | RESULTS
 FY22 net profit was below expectations, at 92% FY22e profit. Net profit of $927mn (-9% YoY) was under our expectations as Urban Development continued to underperform due to headwinds from China’s property market.
 $4.6bn in asset monetisation was announced, on track to exceed $5bn by this year. Another ~$10bn in assets to be monetised.

Read More ...

Boustead Singapore Ltd
Looking to privatise Boustead Projects

■ Boustead Singapore is making a voluntary unconditional general offer of S$0.90 cash per share to privatise its subsidiary Boustead Projects (BPL).
■ We estimate up to 12% EPS accretion for FY24F; BPL can tap into Boustead Singapore’s strong net cash position to chart its next leg of growth.
■ Current offer price favours Boustead Singapore, as it represents c.50% discount to our target RNAV of S$1.79 for BPL. Reiterate Add.

Read More ...

CGS CIMB

Agribusiness
Palm oil stock preview for Jan 2023

■ Malaysia’s palm oil stock likely rose 3% mom to 2.26m tonnes at end-Jan 2023F as production and imports exceeded exports and local usage.
■ CPO price has come under pressure of late due to concerns over rising edible oil stockpiles in India and China.
■ We expect Malaysian planters to report weaker yoy and qoq earnings in 4Q22F due to lower CPO prices and rising costs.
■ Maintain CPO price forecast of RM3,800 per tonne for 2023F and Neutral sector rating. 

Read More ...

CapitaLand Integrated Commercial Trust (CICT SP)
2H22: Stability From Diversification

CICT saw recovery for retail properties where occupancy has improved 1.5ppt qoq to 98.3% in 4Q22. We expect rental reversion for suburban malls to have hit 4% in 4Q22. Its downtown malls will benefit from workers returning to offices and recovery of visitor arrivals driven by the reopening in China in 2023. Occupancy for its office properties was stable at 96.2% in 4Q22. CICT provides 2023 distribution yield of 5.4%. NAV per unit held steady at S$2.12. Maintain BUY. Target price: S$2.29.

Read More ...

First Resources (FR SP)
4Q22 Results Preview: Highest-Ever Yearly Profit

We upgrade FR to BUY on the back of: a) its high dividend yield of 9.7% and 7.2% for 2022 and 2023 respectively, b) it turning into net cash as of Dec 22, and c) better-thanpeers financial performance. We reckon that the upstream performance would remain strong in 4Q22 with strong sales volume, while downstream performance could be lower qoq in 4Q22. However, refining margin should remain relatively stable. Upgrade to BUY with an unchanged target price of S$1.85.

Read More ...

UMS Holdings (UMSH SP)
Mindful Of Cautious Outlook By Chipmakers And Strong Rally In Stock Price

We are seeing more cautious outlooks being released by leading chipmakers including TSMC, Intel, Qualcomm, and Samsung in their latest results. This could result in weaker
revenue for UMS in the near term as its major customer’s order could slow down if the chipmakers delay or cut capex spending amid the weaker end-demand. Also, UMS’ stock price has rallied by around 20% since our upgrade in Nov 22. We trim our 2023 earnings forecast by 16% and reduce our target price by 4% to S$1.32. Downgrade to HOLD. 

Read More ...