| CGS CIMB |
CGS CIMB |
|
United Overseas Bank 3Q23F: Volumes over margin
■ We expect UOB to record 3Q23F net profit of S$1.53bn (+2% qoq). We think NIMs may stay flattish amid stiff competition for high quality corporate names. ■ Wealth management may yet take time to pick up, given the elevated rates. Banks’ asset quality outlook will be key to sector performance, in our view. ■ Reiterate Add. We think UOB’s margins could be more defensive than peers when Fed rates are cut. Dividend yield of c.6.5% is attractive.
|
Centurion Corporation Ltd New interim standards for SG worker dorms
■ Singapore’s MOM has announced new improved interim standards for existing dormitories to be implemented between 2027 and 2030. ■ CENT’s PBDs already meet some of the new requirements, and it has put plans in place to reduce the impact of compliance on market bed supply. ■ Gradual de-densification of worker dorms is in line with our expectations, and reaffirms our view that supply tightness could persist in medium term. Add.
|
|
CGS CIMB |
CGS CIMB |
|
Aztech Global Ltd Net profit likely rose 10% qoq in 3Q23F
■ Aztech Global Ltd (Aztech) will issue its 3Q23F business update after market close on 16 Oct 2023. ■ In our view, 3Q is the busiest quarter for Aztech and we think its 3Q23F net profit rose 56% yoy and 10% qoq to S$32.5m. ■ We raise TP to S$1.23 due to rollover to FY25F and a higher P/E of 8.7x, its 3-year average (previously 8.3x P/E, -0.5 s.d. below its 3-year average).
|
Venture Corporation 3Q23F net profit likely still weak
■ Venture Corporation Ltd (Venture) reported its 3Q business update on 4 Nov last year. We think it could be reporting its 3Q23 update on 3 Nov 2023. ■ We project 3Q23F net profit decline of 34.3% yoy and 3.6% qoq to S$64.0m as its customers continued to deplete their inventories during the quarter. ■ Our TP is reduced slightly to S$16.61 as we roll over our valuation to FY25F P/E and apply a lower 14.6x P/E multiple (15-year average).
|
|
LIM & TAN |
UOB KAYHIAN |
|
Centurion Corp (S$0.40, up 0.5 cents) has issued a response to changes in dormitory specifications announced by regulatory authorities on 11 October 2023. The Ministry of Manpower in Singapore has announced a Dormitory Transition Scheme (“DTS”) for existing dormitories approved or operational before 18 Sep 2021 to transition to improved Interim Dormitory Standards (“IDS”), to strengthen resilience against future pandemics and enhance liveability. Capitalized at S$336mln, Centurion is trading at attractive valuations of just 5.2x core FY23F P/E and 0.46x P/B. The recent doubling of interim dividends to 1.0 S cts represents a decent 5.0% annualized yield. We believe the change in dormitory standards has a good implementation timeline which will only start in 2027 – 2030. Centurions’ five PBDs are already equipped with ensuite toilets and showers, reducing the costs needed to adhere to the new DTS standards where MOM will also be providing financial support. In addition, the 3-11% reduction of PBD capacity (800- 3,000 beds) spread out between 2027 - 2030 will be significantly offset by the construction of a new 1,650-bed Ubi PBD in 2025. Impact on bed capacity is marginal which we believe market rental revisions can absorb. Maintain Buy on Centurion Corp.
|
Seatrium (STM SP) Enthusiasm Unabated – Outlook Remains Bright In 2024
Seatrium’s outlook in 2024 remains bright, in our view, as we expect new order wins in both the oil & gas as well as renewables sectors. In the near term, this could come in the form of two Brazilian FPSOs while in the medium to longer term, renewables demand remains well supported. The company’s strategic review remains on track to be completed by end-23. Maintain BUY. Target price: S$0.19.
|
