| UOB KAYHIAN |
UOB KAYHIAN |
|
Singapore Exchange (SGX SP) 1HFY24 Results Preview: FICC Segment To Become Largest Revenue Contributor
We expect SGX to report higher 1HFY24 revenue (+12% yoy) and adjusted PATMI (+12% yoy), driven by the FICC segment and higher treasury income. Both the cash equities and equity derivatives segments are poised to underperform as 1HFY24 total securities traded value and volumes fell respectively. The FICC segment is set to post record-high revenue driven by robust volumes. With a lack of near-term catalysts, we maintain HOLD and a lower target price of S$10.42 (S$10.46 previously).
|
IOI Properties Group (IOIPG MK) Time To Reap What Was Sown
IOIPG's investment in Singapore is expected to contribute positively to the group, ushering in a new era of growth and profitability, and driving our forecasted three-year earnings CAGR of 26%. The growth in property investment paves the way for a potential REIT IPO with a carrying value of at least RM18b, surpassing the scale of other M-REITs to date. We initiate coverage with BUY and a target price of RM3.06 based on a 45% discount to RNAV of RM5.53.
|
|
CGS CIMB |
LIM & TAN |
|
GKE Corp Ltd China improvement not apparent yet
■ 1HFY24 net profit of S$1.9m (+90% yoy) missed on weak China contribution. New DG business in SG had started to contribute positively since Nov 2023. ■ We expect China RMC revenue to remain weak in the near term as property sales could continue declining in 2024F, hindering RMC sales volumes. ■ Reiterate Hold at a higher SOP-based TP of 8.0 Scts as we roll forward our valuation year to CY25F.
|
Yangzijiang Shipbuilding / Yangzijiang SB ($1.58, down 0.02) a worldleading shipbuilding group based in China, and a Straits Times Index component company listed on the SGX Main Board, has recently secured a contract to build 6 units of 13,000TEU methanol dual-fuel containerships (the “Vessels”) for Ocean Network Express Pte. Ltd. (“ONE”). The Vessels are scheduled to be delivered from 2027 onwards. We believe the short-medium prospects as well as financial performance of YZJSB will remain constructive and upbeat and thus maintain our positive view on the company’s prospects and share price trajectory. Forward PE remains undemanding at 9x and consensus 1 year target price of $1.88 implies a 12 month potential return of 20%. We also believe dividends should surprise positively going forward. We thus maintain an Accumulate rating on YZJSB. |
| LIM & TAN | CGS CIMB |
|
The Ascott Limited (Ascott), the lodging business unit wholly owned by CapitaLand Investment / CLI ($2.96, down 0.07) shared an update on its Oakwood portfolio today. The update follows its strategic acquisition of Oakwood Worldwide in 2H 2022, which leapfrogged Ascott’s growth and cemented its global position as one of the top three extended stay serviced residence providers in the world. At $2.96, CLI is capitalized at $15 billion and trades at 19x forward PE and 1x book. With the better prospects in FY2024, we believe dividends will likely increase from 12 to 15 cents/share, translating to a forward yield of 5.1%. Given the better prospects ahead, little wonder that the company has been consistently buying back shares in the open market recently. We maintain an “Accumulate” rating on CLI and note that Bloomberg consensus 1 year target price of $3.90 implies a potential return of 32%.
|
Airports of Thailand Additional support measures raise eyebrows
■ Despite decent PAX recovery, we believe King Power is experiencing sluggish sales due to weak Chinese arrivals and low demand for duty-free goods. ■ We see increasing risk that AOT may need to provide further assistance to King Power should duty-free spending remain persistently low.
|
