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CSG CIMB |
CGS CIMB |
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Keppel DC REIT Growing Japan DC exposure
■ KDCREIT proposes to acquire a second Japan data centre for S$696.1m. ■ Purchase is DPU accretive and should improve portfolio metrics, in our view. ■ Maintain Add rating with an unchanged TP of S$2.48.
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Seatrium Ltd Divesting US yard, lower provision and cost
■ We are positive on STM’s divestment of its US yard, AmFELS, given that the yard has been facing labour shortage and cost escalations in recent years. ■ The divestment will fetch S$65m (S$50m to be deferred over one year post closing), and we estimate gains to be S$26m, progressively recognised. ■ STM targets to deliver all projects by end-2025F, including two legacy projects. Opex cost could reduce by S$20m in FY26F from the above. ■ We also expect provision for onerous contracts to taper in 2H25F as a legacy WTIV project has arrived at customer’s site. Maintain Add, S$2.80 TP.
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UOB KAYHIAN |
LIM & TAN |
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Renewable Energy BESS: The Balancing Act For Malaysia’s RE Programme
Highlights • BESS adoption is expected to see robust growth, driven by regulatory mandates and solutions on maximum demand reduction among C&I consumers. • Payback periods are expected to improve on the back of tax incentives/allowances and falling battery prices. • Maintain OVERWEIGHT. Sector top picks are Pekat and Malakoff.
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The Business Times reported that The infrastructure division of asset manager Keppel ($8.91, up 9 cents) and Keppel Asia Infrastructure Fund (Kaif) announced on Tuesday (Sep 23) a joint divestment of their combined 80 per cent interest in 800 Super Holdings to sustainable infrastructure investor Actis. Keppel’s market cap stands at S$16.1bln and currently trades at 19x forward PE and 1.6xPB, with a dividend yield of 4%. Consensus target price stands at S$10, representing 12.2% upside from current share price. We continue to like Keppel for it’s strong fundamentals and continued monetization plans to unlock value for shareholders. We continue to maintain an Accumulate on Keppel. |
| LIM & TAN | |
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ISOTeam ($0.084, down 0.2 cents), an established and leading player in Singapore’s building maintenance and estate upgrading industry, has announced that its Share Placement cum Convertible Bond Placement (together, the “Placement Exercises”) have been well-received and fully taken up, raising gross proceeds of approximately S$10.0 million. Post-placement, ISOTeam’s market cap stands at S$66.6mln and currently trades at 7.6x forward PE and 1.2x PB, with a dividend yield of 1.0%. Consensus target price stands at S$0.11, representing 31.0% upside at current share price
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