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UOB KAYHIAN |
UOB KAYHIAN |
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Thai Beverage (THBEV SP) Key Takeaways From Annual Information Meeting
THBEV faces stronger competition for its spirits business due to the upcoming regulatory changes but is expected to benefit from lower molasses costs. The domestic beer segment is set to post better margins and has maintained its market share leadership. However, Sabeco continues to face ongoing headwinds from stringent drink-driving laws and higher excise taxes. Management has reiterated that plans for the BeerCo IPO are still ongoing. Maintain HOLD with the same target price of S$0.45.
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Landlords – Hong Kong Improved Liquidity Supporting Local Spending And Lowering Finance Costs of Landlords; Upgrade To MARKET WEIGHT; Top Pick: Wharf REIC
Despite a drop in retail sales and a peaking vacancy rate, we saw some positive signals, eg a qoq improvement in per capita spending and resilient restaurant receipts. A lower market rate will reduce landlords’ finance costs, with Wharf REIC set to benefit the most. Upgrade to MARKET WEIGHT and expect a marginal improvement in retail sales in the coming summer. Raise target prices by 8-11% for the stocks under our coverage for a lower risk-free rate. Top pick: Wharf REIC.
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MAYBANK KIM ENG |
CGS CIMB |
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IGB REIT (IGBREIT MK) Strategic acquisition of Mid Valley Southkey
Expanding into Johor; U/G to BUY IGBREIT has proposed to acquire Mid Valley Southkey (MVS) Mall in Johor Bahru for MYR2.65bn, marking its first foray outside the Klang Valley. We are positive on the acquisition, which enhances IGBREIT’s income and geographical diversification profile. The deal is earnings- and DPUaccretive, underpinned by the mall’s healthy occupancy, strong footfall and strategic location within the integrated Southkey development. We upgrade IGBREIT to BUY with a higher DDM-TP of MYR2.56 (from MYR2.22).
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China Modern Dairy Holdings Short-term performance under pressure
■ CMD issued a profit warning that it will record a net loss of Rmb800m-Rmb1bn in 1H25F, due to a decrease in raw milk price and loss in fair value of dairy cows. ■ Management expects raw milk price to see some rebound in 3Q25F and achieve yoy positive growth in FY26F. ■ We expect revenue to grow 0.1% to Rmb13bn in FY25F, and net profit to decrease 10.3% to -Rmb1.3bn (net losses of Rmb900m in 1H25F and Rmb371m in 2H25F). ■ We reiterate Add, with a lower TP of HK$1.25, on higher raw milk price from 3Q25F.
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| LIM & TAN | LIM & TAN |
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At 59.5 cents, Singpost is capitalized at $1.35bln and trades at 0.9x price to book ratio. Singpost’s 9 cents special dividend goes ex-div on 30 July’25. Singpost has done reasonably well since our initiation last year and TR/Client event this year when the stock was trading around the low 50s level. We believe investors would have to be paƟ ent to await the continued monetisation and asset realisation program which we believe may take a while. Meanwhile, Singpost’s core operations would likely be challenging due to the macro uncertainties brought about by President Trump’s tariff s. 2H of last year saw Singpost’s core business going into a marginal loss position and Fedex last night in the USA also disappointed the market with lacklustre results and warned of a challenging outlook ahead. We recommend a “HOLD” on Singpost as investors await further asset monetisation to help realize more value over time.
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We continue to like MIT for it’s stable rental reversions and resilient DPUs, backed by a diversified asset base including date centres, business parks, hi-tech industrial buildings and flatted factories. Valuations and yields are also attractive relative to historical averages and as such, we maintain a “BUY” on MIT. |
