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UOB KAYHIAN |
UOB KAYHIAN |
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Frasers Logistics & Commercial Trust (FLT SP) 2HFY25: Higher Occupancies, Less Reliance On Capital Distribution
Highlights • Occupancy for logistics properties in Australia gained 4.3ppt qoq in 4QFY25 and they are back to full occupancy of 100%. Two additional leases were signed at Alexandra Technopark, bringing the backfilling of the ex-Google space to 83%.
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Parkway Life REIT (PREIT SP) Healthcare Provides Variable Rent And Sustainable Growth
Highlights • The healthcare industry has the potential to provide sustainable double-digit growth. PREIT is able to capture the growth through variable rent. • PREIT can enhance organic growth through AEI for GEH and two nursing homes in France. It is exploring a potential acquisition / development of an ambulatory centre in Singapore. • We expect rents from Singapore hospitals to increase by 31.0% in 2026 (previous: +24.5%). Maintain BUY. Target price: S$5.42.
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CGS INTERNATIONAL |
CGS INTERNATIONAL |
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Sanli Environmental Ltd Proven its ability to win contracts
■ 1HFY3/26 revenue of S$72m (-3.3% yoy) roughly in line with our/Bloomberg consensus expectations. Revenue decline due to completion of projects. ■ 1HFY26 net profit of S$3.2m (+87% yoy) in line at 43% of our FY26 forecast but above Bloomberg consensus’ at 50%. ■ Reiterate Add. Our TP declines to S$0.47 as we factor in the S$205m/ S$281m PUB/LTA order wins and EPS dilution from new share placement.
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Coal Mining Weak demand keeps lid on prices
■ We downgrade coal sector from Neutral to Underweight. Soft demand amid high inventories, particularly in low-mid CV coal, could further weigh on price. ■ Our net profit is 7-46% lower than Bloomberg consensus and we expect sector NPAT to decline by 8% yoy in FY26F. ■ Sector’s dividend outlook is less appealing after earnings downgrade. We have Reduce calls on ITMG and PTBA, Hold on AADI and UNTR.
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| LIM & TAN | LIM & TAN |
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CDL Hospitality Trust / CDLHT ($0.825, up 0.5 cents) has entered into a new five-year lease agreement with Hospitality Services Limited, a subsidiary of Millennium & Copthorne Hotels New Zealand (MCK), for the continued operation of the 453-room Grand Millennium Auckland. CDLHT’s market cap stands at S$1bln and currently trades at 45.8x forward PE and 0.6x PB, with a dividend yield of 4.8%. Consensus target price stands at S$0.83, representing 0.6% upside from current share price. Given limited upside to share price, we continue to maintain a HOLD on CDLHT
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CapitaLand Investment / CLI (S$2.63, up 3 cts) has been appointed by Coronade Properties Sdn Bhd (Coronade Properties) to collaborate on shaping the retail vision for Coronation Square Mall. Located in the Johor-Singapore Special Economic Zone, the upcoming 1.2million square foot mall will mark a new chapter in cross-border retail collaboration CLI’s market cap stands at S$13.1bln and currently trades at 20x forward PE and 1.0x PB, with a dividend yield of 4.6%. Consensus target price stands at S$3.39, representing 28.9% upside from current share price. We remain constructive on CLI given its ongoing monetization efforts to reduce matured assets and re-cycle capital into faster growing platforms to help generate recurring and higher ROE income streams. Coupled with a dovish environment, we maintain BUY on CLI. |
