Singapore REITs Monthly - Phillip Securities 2021-12-17: Positioning For The Future

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PRIME US REIT (SGX:OXMU) ASCENDAS REAL ESTATE INV TRUST (SGX:A17U) FRASERS CENTREPOINT TRUST (SGX:J69U) ASCOTT RESIDENCE TRUST (SGX:HMN)

Singapore REITs Monthly - Positioning For The Future

• Stock markets declined m-o-m, as stocks fought to shake off the Omicron jitters. The FTSE S-REIT Index continued to lag the STI and FTSE Real Estate developer index, down 3.0ppts m-o-m. All sub-sectors were in the red, except for Healthcare (+3.5ppt), with Hospitality (- 6.6ppts) weighing down the index.
• The dividend yield spread of 262bps is -1.1SD of the 10-year average. The 3MSOR was up 20bps y-o-y, but remains below the 5-year and 10-year historical levels, supporting ~S$11.5bn in acquisition year-to-date.
• We remain OVERWEIGHT with preference on the Retail and Industrial sectors. Catalysts expected from pick-up in the economy and portfolio rebalancing. S-REITs under our coverage to deliver FY21e DPU yields of 4.0-8.7%.
• Top picks are Prime US REIT (SGX:OXMU) and Ascendas REIT (SGX:A17U).

BRC Asia - Phillip Securities 2021-12-09: FY21 Profit At Record High

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BRC ASIA LIMITED (SGX:BEC)

BRC Asia - FY21 Profit At Record High

• BRC Asia (SGX:BEC)'s 4Q21 earnings of S$10.2mil was above our estimates, at 26.9%. The beat came from higher deliveries and the reversal of impairment loss from its associates. FY21 profit of $49.7mil is a record high for the group.
• BRC Asia's total dividend for FY21 stands at S$0.12 per share, exceeding our forecast of S$0.08, reflecting management’s confidence in the construction recovery.

Del Monte Pacific 2Q22 Results - Phillip Securities 2021-12-17: Strong Growth Momentum In The US

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DEL MONTE PACIFIC LIMITED (SGX:D03)

Del Monte Pacific 2Q22 Results - Strong Growth Momentum In The US

• Del Monte Pacific (SGX:D03)'s 2Q22 results exceeded expectations. 2Q22 revenue and PATMI at 29%/41% of our FY22 forecasts. Revenue from Americas exceeded expectations.
• US subsidiary DMFI branded retail sales grew 11% y-o-y, with strong momentum from core vegetable business and shipments in preparation for holiday promotional activity.

Lian Beng Group - Phillip Securities 2021-12-03: Navigating A Tough Construction Sector

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LIAN BENG GROUP LTD (SGX:L03)

Lian Beng Group - Navigating A Tough Construction Sector

• Lian Beng (SGX:L03)’s order book for the construction segment remains strong at S$1.4bn, expected to support construction activities until FY26.
• Year-to-date September 2021, the value of industry construction contracts awarded has increased 36.7% to S$21.7bn.
• Lian Beng's diversified portfolio has cushioned the negative impact of the challenging construction industry on the bottom line.

Manulife US REIT - Phillip Securities 2021-12-06: Highly Anticipated Entry Into High-Growth Cities

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MANULIFE US REIT (SGX:BTOU)

Manulife US REIT - Highly Anticipated Entry Into High-Growth Cities

• Manulife US REIT (SGX:BTOU)'s acquisition of three assets located in high-growth Sun Belt and magnet cities of Phoenix and Portland will increase exposure to tech and healthcare tenants from 9.5% to 12.8%.
• DPU accretion of 4.4% based LTV of 59% with potential 9.0-14.7% upside from under market rents in next major renewal cycle in 2024.
• Maintain ACCUMULATE call on Manulife US REIT with DDM-based target price (COE 9.1%) of US$0.84. No change in estimates pending the completion of EFR and acquisition. Prefer Prime US REIT (SGX:OXMU) in the sector for greater tenant exposure to STEM/TAMI sectors.

Pan United Corporation - SAC Capital 2021-12-17: Gearing Up For Re-opening Ramp

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PAN-UNITED CORPORATION LTD (SGX:P52)

Pan United Corporation - Gearing Up For Re-opening Ramp

• We expect Singapore to proceed with its re-opening plans, in spite of the new Omicron variant. And we think the pace of the pick-up in construction activities will accelerate as the industry play catch-up after two slow years impeded by COVID restrictions.

Ramp up capacity to meet increased demand

Singapore Property Sector - UOB Kay Hian 2021-12-17: Coal For Christmas

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CITY DEVELOPMENTS LIMITED (SGX:C09) PROPNEX LIMITED (SGX:OYY)

Singapore Property Sector - Coal For Christmas

• The government introduced three new cooling measures aimed at dampening the property market. We were surprised at the extent of the measures given that they affect a very broad swathe of the market, as well as the timing since recent data has arguably not shown that prices are “out of control”.
• Nevertheless, we maintain OVERWEIGHT on the property sector heading into 2022 as we believe that the market will adjust to the new normal, backed up by firm economic fundamentals.

Not the Christmas present that the Singapore property market expected.

Top Glove - RHB Invest 2021-12-13: Poor Utilisation Rates Moving Forward; Downgrade To SELL

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TOP GLOVE CORPORATION BHD (SGX:BVA)

Top Glove - Poor Utilisation Rates Moving Forward; Downgrade To SELL

• Downgrade Top Glove to SELL from Neutral, with a lower DCF-derived target price of MYR1.42 from MYR2.85, 34% downside.
• Top Glove's 1Q22 earnings came below our and consensus’ expectations due to subdued demand, leading to poor utilisation rates.

SingTel - UOB Kay Hian 2021-12-16: Cementing 5G Coverage In Singapore & Australia

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SINGTEL (SGX:Z74)

SingTel - Cementing 5G Coverage In Singapore & Australia

• There are green shots in terms of 5G uplift in Singapore and Australia as recent wins of additional spectrum will help drive the consumer business. Elsewhere, SingTel's management is on track to achieve 170MW of data centre assets in the region (worth S$7-8b). A 30MW integrated cable landing station and data centre is underway in Singapore as SingTel seeks financing options while the Thailand-Indonesia partnership remains in active discussions.

Kimly - UOB Kay Hian 2021-12-15: FY21 Excellent Results Supported By JSS Savings & Rental Rebates

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KIMLY LIMITED (SGX:1D0)

Kimly - FY21 Excellent Results Supported By JSS Savings & Rental Rebates

• Kimly’s FY21 net profit grew 55.8% y-o-y to S$39.2m, forming 142.8% of our full-year forecasts. Outperformance was largely due to S$15.8m of JSS savings and rental rebates which boosted earnings. All of Kimly’s business segments recorded strong revenue growth as new outlets and stalls opened in FY21.

IHH Healthcare - Maybank Kim Eng 2021-12-16: Dissecting Its Regional Strategy; Maintain BUY

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IHH HEALTHCARE BERHAD (SGX:Q0F)

IHH Healthcare - Dissecting Its Regional Strategy; Maintain BUY

• Given the recent hints about potential asset divestments, we assess IHH Healthcare (SGX:Q0F)’s portfolio of assets in order to better understand its regional footprint strategy. In short, we think a potential divestment of its China assets is unlikely in the near term, given the cost of investments are much higher vs recent hospital transactions.
• Additionally, the recent completion of asset divestments reflects IHH Healthcare’s ability to recycle its capital through other avenues to fund its cluster-focused expansion strategies.

Koufu Group - UOB Kay Hian 2021-12-13: Positioned For Sequential Recovery

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KOUFU GROUP LIMITED (SGX:VL6)

Koufu Group - Positioned For Sequential Recovery

• Despite revenue weakness in 3Q21 (-20% vs pre-COVID-19 levels) due to prohibitions on dining in, we expect Koufu (SGX:VL6)’s performance to improve sequentially due to:
  1. dining in prohibitions being relaxed in late-Nov 21, and
  2. further reopening with more VTL arrangements.
• On the other hand, Koufu's business in Macau remains uncertain due to China’s tight border control but is expected to improve once Macau opens up.

Top Glove - Maybank Kim Eng 2021-12-12: 1QFY22 Hit By Lower ASP & Sales Volume; ASP Outlook Remains Challenging

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TOP GLOVE CORPORATION BHD (SGX:BVA)

Top Glove - 1QFY22 Hit By Lower ASP & Sales Volume; ASP Outlook Remains Challenging

• Top Glove (SGX:BVA)’s 1QFY22 (Sep 2021 to Nov 2021) net profit of MYR186m was below our and consensus full-year estimates. Management expects ASP to continue falling but at a slower pace. It remains cautious and will defer some of the expansion plans.
• We lower our FY22/23/24 earnings per share forecasts by -27%/-5%/-4%. We now value Top Glove at RM1.61 on an unchanged 12.7x CY23 PER. Maintain SELL call on Top Glove.

Top Glove - UOB Kay Hian 2021-12-13: 1QFY22 Results Weighed By Softened Industry Prospects

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TOP GLOVE CORPORATION BHD (SGX:BVA)

Top Glove - 1QFY22 Results Weighed By Softened Industry Prospects

• Top Glove (SGX:BVA)'s earnings were below expectations as ASPs dipped while volume recovery was weaker than expected against softened industry dynamics. The lifting of the US export ban should gradually result in improved US sales but overall utilisation rates may remain subdued due to muted industry prospects.
• Against the backdrop of an industry downcycle and possible disappointment to expectations, we do not rule out further downside. Maintain HOLD on Top Glove with a lower target price.

Dairy Farm International - UOB Kay Hian 2021-12-08: China Malaise Not Confined To The Tech Sector

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DAIRY FARM INT'L HOLDINGS LTD (SGX:D01)

Dairy Farm International - China Malaise Not Confined To The Tech Sector

• The high base in 2020, which was positively affected by panic spending and government support, means that Dairy Farm International has a tough act to follow. Increased levels of competition in China have hurt its key associate Yonghui, and positive y-o-y performances from some of its segments do not appear to be able to rescue its 2021 numbers.
• We believe 2021 earnings downgrades have hit a trough and investors should be rewarded over the next few months. Maintain BUY.

Singapore Stock Alpha Picks (Dec 2021) - UOB Kay Hian 2021-12-06: Removing Sea, iFAST & Our Tactical Short On DBS OCBC, Adding Sembcorp Marine, BRC Asia

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ASCOTT RESIDENCE TRUST (SGX:HMN) BRC ASIA LIMITED (SGX:BEC) CIVMEC LIMITED (SGX:P9D) COMFORTDELGRO CORPORATION LTD (SGX:C52) FRASERS LOGISTICS & COMMERCIAL TRUST (SGX:BUOU) GENTING SINGAPORE LIMITED (SGX:G13) LENDLEASE GLOBAL COMMERCIAL REIT (SGX:JYEU) SINGTEL (SGX:Z74) THAI BEVERAGE PUBLIC CO LTD (SGX:Y92) UNI-ASIA GROUP LIMITED (SGX:CHJ) WILMAR INTERNATIONAL LIMITED (SGX:F34) YANGZIJIANG SHIPBLDG HLDGS LTD (SGX:BS6) SEMBCORP MARINE LTD (SGX:S51)

Singapore Stock Alpha Picks (Dec 2021) - Removing Sea, iFAST & Our Tactical Short On DBS OCBC, Adding Sembcorp Marine, BRC Asia

• Our Nov 21 Alpha Picks portfolio (Singapore Stock Alpha Picks (Nov 2021) - UOB Kay Hian 2021-11-03: Short DBS & OCBC, Remove InnoTek & UMS, Add iFAST, ThaiBev, Civmec & Uni-Asia) outperformed the STI, declining 4.1% m-o-m vs the latter’s drop of 4.9%.
• For Dec 21, we have removed our short-term tactical call to short DBS (SGX:D05) and OCBC (SGX:O39), and also removed Sea and iFAST (SGX:AIY).
• Additions to the portfolio are Sembcorp Marine (SGX:S51) where we believe the risk/reward has become compelling, and BRC Asia (SGX:BEC) which is a proxy to Singapore infrastructure spending and reopening.

Manulife US REIT - UOB Kay Hian 2021-12-03: Increased Exposure To High-growth Tech & Healthcare Sectors

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MANULIFE US REIT (SGX:BTOU)

Manulife US REIT - Increased Exposure To High-growth Tech & Healthcare Sectors

• Manulife US REIT (SGX:BTOU) has entered into purchase agreements to acquire three properties in Phoenix, Arizona and Portland, Oregon. The trio of acquisitions reinforces Manulife US REIT’s plans to increase exposure to high-growth tech and healthcare sectors.
• The DPU-accretive acquisitions would be funded via a private placement and existing loan facilities. Maintain BUY with an attractive yield of 8.1%.

Singapore Technology Stocks - Maybank Kim Eng 2021-12-01: Time To Get Picky

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AEM HOLDINGS LTD (SGX:AWX) UMS HOLDINGS LIMITED (SGX:558) FRENCKEN GROUP LIMITED (SGX:E28) AZTECH GLOBAL LTD. (SGX:8AZ) VALUETRONICS HOLDINGS LIMITED (SGX:BN2) VENTURE CORPORATION LIMITED (SGX:V03)

Singapore Technology Stocks - Time To Get Picky

Still POSITIVE, but time to be selective and vigilant

• We stay POSITIVE on Singapore Tech, as demand dynamics are still solid. Yet, in response to still stubborn supply-side bottlenecks, we are incrementally selective.
• We raise target price for AEM (SGX:AWX) to S$6.23 (16x FY22E P/E) as we increase FY22-23E EPS by 8% to factor in strong earnings momentum, and upgrade Frencken (SGX:E28) to BUY on unchanged target price of S$2.50 (15.5x FY22E P/E) after the recent correction.
• We prefer AEM, UMS (SGX:558) and Frencken for exposure as we believe these face less supply-side bottlenecks than downstream players.

CapitaLand Integrated Commercial Trust - Maybank Kim Eng 2021-12-06: Diversifying Down Under

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CAPITALAND INTEGRATED COMM TR (SGX:C38U)

CapitaLand Integrated Commercial Trust - Diversifying Down Under

Office deal DPU-accretive; Recovery gaining traction

• CapitaLand Integrated Commercial Trust (SGX:C38U) is recycling part of its divestment proceeds from One George Street in Singapore (at a 3.17% exit NPI yield) into two Australian Grade-A office properties for AUD330.7m, from its sponsor at a 5.2% NPI yield, to deliver 3.1% DPU accretion.
• We see favourable growth fundamentals, as CapitaLand Integrated Commercial Trust (SGX:C38U)'s AUM rises 3% to S$22.4b, with overseas assets growing to 7%, even as management maintains its Singapore core. Here, recovery is gaining traction from tenant expansion as office demand returns, as committed occupancy has improved at Asia Square Tower 2 and CapitaSpring to 94.3% and 88.3% respectively (from 82.8% and 83.1% as at end-Sep 2021).

Digital Core REIT - UOB Kay Hian 2021-12-06: Quality Growth From Hyperscale Demand & Sizeable Sponsor Pipeline

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DIGITAL CORE REIT (SGX:DCRU)

Digital Core REIT - Quality Growth From Hyperscale Demand & Sizeable Sponsor Pipeline

• With 68.5% of its base rental income derived from hyperscalers, Digital Core REIT (SGX:DCRU) benefits from strong demand for hyperscale data centres expanding at a CAGR of 23% in 2020-24.
• Sponsor Digital Realty has granted Digital Core REIT a global ROFR on its pipeline worth over US$15b. Its ability to scale up is supported by its low aggregate leverage of 27% and competitive cost of debt at 1.0%.

Keppel REIT - Maybank Kim Eng 2021-12-01: Adding Down Under

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KEPPEL REIT (SGX:K71U)

Keppel REIT - Adding Down Under

An Australian deal at 3.0% DPU accretion

• Keppel REIT (SGX:K71U) is deepening its Australian footprint with an AUD327.7m (S$322.2m) acquisition of Blue & William, a Grade-A office property in North Sydney, under development till mid-2023, at a 3.0% DPU accretion. We expect the transaction structure to underpin near-term DPU visibility, while the property, well-sited in NSW’s second largest office market, suggests a stronger medium-term rental growth outlook, and valuation upside.

Manulife US REIT - Maybank Kim Eng 2021-12-01: Growing Growth AUM

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MANULIFE US REIT (SGX:BTOU)

Manulife US REIT - Growing Growth AUN

Adding three assets at +4.4% DPU accretion

• Manulife US REIT (SGX:BTOU) is adding three properties for US$201.6m at undemanding 5.8-7.0% cap rates, and delivering on its well-articulated acquisition strategy, with its latest deal. Post-deal, ‘growth markets’ concentration is set to rise from 21% to 28% of its AUM, with assets in Phoenix and Portland backed by long WALE and quality high-growth tech and healthcare sector tenancies.

IHH Healthcare - Maybank Kim Eng 2021-11-30: Operationally Resilient

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IHH HEALTHCARE BERHAD (SGX:Q0F)

IHH Healthcare - Operationally Resilient

Slightly ahead of expectations

• IHH Healthcare (SGX:Q0F)’s 3Q21 core earnings were up 48% y-o-y on stronger operational metrics across its operations. 9M earnings came in slightly ahead of expectations, making up 79% and 81% of ours and consensus’ full-year forecast, as the sequential moderation in 3Q21 revenue intensity and COVID-19 related revenues were not as severe as we initially expected.

Koufu Group - Maybank Kim Eng 2021-11-30: Bumpy Ride To Recovery

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KOUFU GROUP LIMITED (SGX:VL6)

Koufu Group - Bumpy Ride To Recovery

Reopening disrupted by Omicron but no U-turn

• F&B establishments, including food courts and hawker centres, are now allowed to admit five vaccinated persons from different households for dining in at the same table. However, Omicron throws a spanner in the works and there are concerns the government may be forced to re-introduce safety measures to tackle the new variant.
• We do not foresee a U-turn on the direction of re-opening plans, which are supportive of medium-term recovery in footfall and operating leverage.

Singapore REITs - UOB Kay Hian 2021-11-29: Omicron Variant ~ Reopening Delayed But Not Derailed

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ASCENDAS REAL ESTATE INV TRUST (SGX:A17U) FRASERS CENTREPOINT TRUST (SGX:J69U) FRASERS LOGISTICS & COMMERCIAL TRUST (SGX:BUOU) MAPLETREE INDUSTRIAL TRUST (SGX:ME8U)

Singapore REITs - Omicron Variant ~ Reopening Delayed But Not Derailed

• The new Omicron COVID-19 variant is more contagious. Existing vaccines still offer some protection but their efficacy is expected to be much reduced. Pharmaceutical companies are working on new vaccines and booster shots specifically designed to combat the new Omicron variant.
• Switch from Reopening Plays to New Economy Plays. BUY
  • Ascendas REIT (Target Price: S$3.83),
  • Frasers Logistics & Commercial Trust (Target Price: S$1.79),
  • Mapletree Industrial Trust (Target Price: S$3.72) and
  • Frasers Centrepoint Trust (Target Price: S$2.98).
• Maintain OVERWEIGHT.

LHN Limited - Phillip Securities 2021-12-02: Tapping Into Evolving Real-Estate Trends

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LHN LIMITED (SGX:41O)

LHN Limited - Tapping Into Evolving Real-Estate Trends

• LHN Limited (SGX:41O)'s FY21 results were below expectations. FY21 revenue and PATMI at 89%/84% of our forecasts. Revenue from commercial and residential properties and facilities management were lower than expected.
• Maintain BUY call on LHN with a lower target price of S$0.49 from S$0.54. We roll over our P/E target to FY22e or 7x P/E. Our FY22e PATMI forecast for LHN has been lowered by 16% as we reduce our forecast revenue for the same segments mentioned. Industry is trading at 14x FY22e, down from 19x.

Keppel REIT - UOB Kay Hian 2021-12-01: Yield-accretive Acquisition In North Sydney

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KEPPEL REIT (SGX:K71U)

Keppel REIT - Yield-accretive Acquisition In North Sydney

• Keppel REIT has entered into an agreement to acquire Blue & William, a freehold Grade A office building under development in North Sydney for A$327.7m. The property provides coupon of 4.5% on cumulative progress payments during the development phase and NPI yield of 4.5% after practical completion. The acquisition will boost pro forma 2020 DPU by 3% and is fully funded by A$-denominated loans.
• Risk of merger with SPH REIT (SGX:SK6U) was averted. Maintain BUY call on Keppel REIT.

Yangzijiang Shipbuilding - UOB Kay Hian 2021-11-30: The Spin-Off Journey Begins With A Single Step

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YANGZIJIANG SHIPBLDG HLDGS LTD (SGX:BS6)

Yangzijiang Shipbuilding - The Spin-Off Journey Begins With A Single Step

• Yangzijiang announced that it is exploring the possibility of spinning off its investments business into a separate entity which will then be listed. While this process may take 6- 12 months, we view this move in a positive light as it should remove some of the discounts that investors had arguably placed on the company, given the size of this non-core business.
• Maintain BUY call on Yangzijiang Shipbuilding (SGX:BS6).

Thai Beverage FY21 - UOB Kay Hian 2021-11-29: Resilient Results Despite COVID-19 Lockdown Restrictions

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THAI BEVERAGE PUBLIC CO LTD (SGX:Y92)

Thai Beverage FY21 - Resilient Results Despite COVID-19 Lockdown Restrictions

• Thai Beverage announced reported FY21 core net profit of Bt27.3b, down 3.2% y-o-y but well within expectations. Total full-year dividend was at Bt0.50/share (FY20: Bt0.46). FY21 spirits and beer volumes softened by 1.8% and 11.2% y-o-y respectively, dragged down by COVID-19 lockdown restrictions in 4QFY21.
• Thai Beverage continued to benefit from well-managed SG&A costs. Maintain BUY.

Thai Beverage's FY21 - Phillip Securities 2021-11-28: Lockdown Hangover Continues

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THAI BEVERAGE PUBLIC CO LTD (SGX:Y92)

Thai Beverage's FY21 - Lockdown Hangover Continues

• Thai Beverage (SGX:Y92)'s results were below results expectations. FY21 revenue and PATMI were 90%/91% of our FY21e forecasts. 4Q21 EBITDA was down 34% y-o-y to Bt7.6bn.
• Spirit volumes declined 19% y-o-y in 4Q21. Weakness was due to promo sales a year ago and dampening consumer sentiment in Thailand.
• We lower FY22e EPS by 10% to S$0.0425 as we reduce PATMI on expectations of slower recovery in consumer spending. Forex assumptions have also been cut following the weakness in the Thai baht. We downgrade our recommendation for Thai Beverage from BUY to ACCUMULATE with a lower target price of S$0.765 (previously S$0.86). Our target price for Thai Beverage is based on 18x FY22e earnings, its 5-year average.

iX Biopharma - Phillip Securities 2021-11-29: Just A Warm Up

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IX BIOPHARMA LTD. (SGX:42C)

iX Biopharma - Just A Warm Up

• iX Biopharma (SGX:42C) signs out-licensing agreement for its Wafermine drug worth more than S$300mil (excluding royalties) with Nasdaq-listed Seelos Therapeutics. Seelos provides the regulatory, clinical development and local USA market knowledge to register and commercialise Wafermine and other ketamine-related products.
• Seelos will fund future development, manufacturing and commercialisation of Wafermine and related drugs. iX Biopharma will receive an upfront payment, development milestone, sales milestone and royalties.

Uni-Asia Group - KGI Securities 2021-11-22: Bumper Year Ahead For Handysize

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UNI-ASIA GROUP LIMITED (SGX:CHJ)

Uni-Asia Group - Bumper Year Ahead For Handysize

• Still going strong. Uni-Asia Group (SGX:CHJ) provided a 9M21 business update. While no revenue and earnings were disclosed, the overall tone was positive. Industry trends for handysize dry bulk carriers remain supportive, even with the recent correction of the Baltic Dry Bulk indices. Meanwhile, HK’s property market is expected to improve upon the reopening of borders with China.

Strength to strength.

OxPay Financial - KGI Securities 2021-11-16: Cash Is No Longer King

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OXPAY FINANCIAL LIMITED (SGX:TVV)

OxPay Financial - Cash Is No Longer King

• OxPay Financial is an online-to-offline (O2O) financial services technology provider with a fully integrated platform that allows both online and offline merchants to run and grow their business easily.
• Initiate coverage on OxPay Financial with Outperform and S$0.42 target price. OxPay Financial is well-positioned to benefit from the growing e-commerce trend and the explosive use of e-money with its recent integration of GrabPay and Shopee Pay. The appointment of OxPay Financial as exclusive payment provider for F&B Hive Ventures, which has over 4000 restaurants in Thailand, is expected to be significant revenue contributor from FY22 onwards.

Trans-China Automotive Holdings - UOB Kay Hian 2021-11-26: A Premium Drive Gearing Up For The Fast Lane

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TRANS-CHINA AUTOMOTIVE HOLDINGS LIMITED (SGX:VI2)

Trans-China Automotive Holdings - A Premium Drive Gearing Up For The Fast Lane

• Trans-China Automotive is a premium automobile dealership group mainly operating in China’s affluent Greater Bay Area. The company carries well-established automobile brands such as BMW and McLaren, riding on the strong demand for premium automobiles and the line-up of electric vehicles slated for launch.
• Initiate coverage on Trans-China Automotive with BUY call.

City Developments - RHB Invest 2021-11-22: Positive Catalysts Emerging; Stay BUY

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CITY DEVELOPMENTS LIMITED (SGX:C09)

City Developments - Positive Catalysts Emerging; Stay BUY

• City Developments's share price seems to have bottomed out since its announcement of divestment of its entire Sincere equity stake. We see more positive catalysts emerging from strong residential sales across its new launches in Singapore, asset divestments and redevelopment as well as a recovery in hospitality sector.
• City Developments (SGX:C09)'s valuations are attractive at 20%/54% discounts to book value and RNAV.

UnUsUaL - SAC Capital 2021-11-16: Cease Coverage

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UNUSUAL LIMITED (SGX:1D1)

UnUsUaL - Cease Coverage

• Due to reallocation of resources, we are ceasing coverage on UnUsUaL (SGX:1D1).
• In 1HFY22 (ended 30 Sep), UnUsUaL’s net loss halved from S$3.4m to S$1.6m, despite a decline in revenue from S$1.1m to S$0.4m, and lower government grant of S$0.2m (1H21:S$0.3m).

Operating environment remains challenging since March 2020.

Mapletree Logistics Trust - UOB Kay Hian 2021-11-24: Sizeable Acquisition Accompanied By Sizeable Equity Fund-Raising

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MAPLETREE LOGISTICS TRUST (SGX:M44U)

Mapletree Logistics Trust - Sizeable Acquisition Accompanied By Sizeable Equity Fund-Raising

• The proposed acquisition of 17 modern Grade-A logistics properties in China, Vietnam and Japan at a total acquisition cost of S$1,467.5m is massive, much larger than Mapletree Logistics Trust’s previous acquisitions. The portfolio includes seven logistics properties in China that are still undergoing stabilisation, whereby in-place rents and occupancy rates are below current market levels.

Singapore Exchange (SGX) - UOB Kay Hian 2021-11-25: Assessing The Impact Of HKEx’s MSCI China A50 Connect Index Futures

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SINGAPORE EXCHANGE LIMITED (SGX:S68)

Singapore Exchange (SGX) - Assessing The Impact Of HKEx’s MSCI China A50 Connect Index Futures

• SGX (SGX:S68) saw lower trading velocity in Oct 21 although securities trading volumes remained above pre-pandemic levels. Derivatives daily average volumes softened slightly due to the week-long holiday in China in Oct 21. HKEX has launched its MSCI China A50 Connect Index Futures, providing direct competition to SGX’s FTSE China A50 Index Futures.

City Developments - UOB Kay Hian 2021-11-24: Resilient Operating Performance With A Better Outlook

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CITY DEVELOPMENTS LIMITED (SGX:C09)

City Developments - Resilient Operating Performance With A Better Outlook

• City Developments (SGX:C09) reported a resilient operating performance in 3Q21 with strong sequential momentum in its property development and hospitality businesses. However, slight speed bumps may appear in the form of resurgent COVID-19 infections especially in Europe. Strategically, given the jettisoning of its stake in Sincere in Sep 21, the outlook appears reasonably good heading into 2022.
• Maintain BUY.

Sembcorp Industries - UOB Kay Hian 2021-11-22: All About Transitioning To A Greener Future

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SEMBCORP INDUSTRIES LTD (SGX:U96)

Sembcorp Industries - All About Transitioning To A Greener Future

• Sembcorp Industries hosted a site visit to its 60MWp floating solar farm at Tengeh reservoir which highlighted its operational capabilities as well as its larger renewables plans both in Singapore and regionally. In addition, we highlight Sembcorp Industries’s acquisition of a portfolio of Chinese wind and solar assets totalling 658MW for RMB3.3b (S$700m) which we view as a fair valuation.
• Maintain BUY.

Centurion Corp - UOB Kay Hian 2021-11-23: 3Q21 Resilience & Recovery

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CENTURION CORPORATION LIMITED (SGX:OU8)

Centurion Corp - 3Q21 Resilience & Recovery

• Centurion Corp (SGX:OU8) reported a strong 3Q21 with revenue up 20% y-o-y to S$35.3m, helped by its PBWA segment as occupancy and portfolio expansion both increased at a healthy clip. Its 9M21 revenue was stronger than expected at S$99.9m (+4% y-o-y), making up over 80% of our full-year 2021 estimates.
• As international travel progressively picks up in its key markets, we remain cautiously optimistic on the recovery of its PBSA assets and 2022 outlook. Maintain BUY.

Mapletree Logistics Trust - Maybank Kim Eng 2021-11-23: Delivering AUM Growth

SGinvestors.io

MAPLETREE LOGISTICS TRUST (SGX:M44U)

Mapletree Logistics Trust - Delivering AUM Growth

Adding S$1.4b assets in China, Vietnam and Japan

• Mapletree Logistics Trust (SGX:M44U)’s acquisitions have picked up pace post-1H22, as it added 17 Grade A logistics assets (average age of 1.6 years) in China, Vietnam and Japan for ~S$1.4b, which are set to boost its NLA by 18.3% and AUM by 13.5% to S$12.2b.
• While DPU accretion is low at ~1%, the assets are backed by strong fundamentals, with upside to rents and valuations in the medium term, underpinned by tight supply.
• We will revise our estimates and DDM-based S$2.35 target price for Mapletree Logistics Trust (COE: 5.7%, LTG: 2.0%) pending deal closure.

Q&M Dental Group's 3Q21 Results - Phillip Securities 2021-11-19: Testing Services Drove All The Growth

SGinvestors.io

Q & M DENTAL GROUP (S) LIMITED (SGX:QC7)

Q&M Dental Group's 3Q21 Results - Testing Services Drove All The Growth

• Q&M Dental Group (SGX:QC7)'s 3Q21 PATMI rose 69% y-o-y to S$9.5mil. Earnings modestly exceeded our expectations, at 78% of our adjusted FY21e forecast. All the growth was from COVID-19 PCR test.
• Dental PATMI is estimated to have declined around 18% y-o-y in 3Q21. Q&M Dental is on track for a record 17 new clinics in Singapore this year.

ComfortDelGro - Phillip Securities 2021-11-14: Restructuring Whimper But Cash Rolling-In

SGinvestors.io

COMFORTDELGRO CORPORATION LTD (SGX:C52)

ComfortDelGro - Restructuring Whimper But Cash Rolling-In

• ComfortDelGro (SGX:C52)'s 3Q21 earnings was below expectations. 9M21 revenue and PATMI was 70%/60% of our FY21e forecast respectively. Taxi rebates in 3Q21 resulted in operating losses.
• Downtown Line (DTL) transitioning to NRFF 2 resulted in a net S$15mil saving. But new bus contract extension may lower future operating earnings by S$34mil.
• The downside protection of earnings from NRFF 2 was lower than expected. At the peak of the restrictions last year, savings was only around S$15mil. Any shortfall in takings is limited to the license fee payable to authorities.

PropNex's 3Q21 Results - Phillip Securities 2021-11-14: A New Altitude

SGinvestors.io

PROPNEX LIMITED (SGX:OYY)

PropNex's 3Q21 Results - A New Altitude

• PropNex (SGX:OYY)'s 3Q21 PATMI spiked 113% y-o-y to S$16.5mil. 9M21 revenue and PATMI were within expectation at 73%/72% of FY21e forecast. The fastest growing segment was private resale, revenue tripled to S$70.6mil.
• PropNex aims to pay out 75%-80% of FY21 PATMI as dividends. We raise our FY21e dividend forecast by 17% from S$0.115 to S$0.135 per share. This implies FY21e dividend yield of 7%.

UG Healthcare's 1Q22 Update - Phillip Securities 2021-11-18: Production Disruption But Trading Below Book

SGinvestors.io

UG HEALTHCARE CORPORATIONLTD (SGX:8K7)

UG Healthcare's 1Q22 Update - Production Disruption But Trading Below Book

• UG Healthcare (SGX:8K7)'s 1Q22 PATMI declined 53% y-o-y to S$10.6mil. 1Q22 revenue/PATMI were within expectations at 25%/22% of our FY22e forecasts. Weakness due to declining lower glove prices.
• Factories were shut almost three weeks in July under a government mandated lockdown.
• Industry nitrile glove prices declined significantly q-o-q but latex gloves prices were relatively more stable.
• We are lowering UG Healthcare's FY22e earnings by forecast to S$39mil.

Hyphens Pharma International's 3Q21 Update - Phillip Securities 2021-11-22: Speedbump In Vietnam

SGinvestors.io

HYPHENS PHARMA INTL LIMITED (SGX:1J5)

Hyphens Pharma International's 3Q21 Update - Speedbump In Vietnam

• Hyphens Pharma (SGX:1J5)'s 3Q21 results were above expectations. 9M21 PATMI is at 88% of our FY21e forecast.
• Despite the pandemic lockdown in Vietnam, Hyphens Pharma managed to sustain earnings better than expected in 3Q21.
• The new acquisition of healthcare distributor Novem for S$16.3mil has the potential to raise EPS by 25% to 30%.

Keppel Corporation - Phillip Securities 2021-11-18: Comparison Of Both Offers For SPH

SGinvestors.io

KEPPEL CORPORATION LIMITED (SGX:BN4)

Keppel Corporation - Comparison Of Both Offers For SPH

• SPH (SGX:T39) and Cuscaden Peak (Cuscaden) have entered into an implementation agreement to privatise SPH via a scheme of arrangement, after Cuscaden raised its offer to $2.36-2.40 per share.
• We compared the two offers. Despite offering more certainty of deal completion and the shortest time to payout under Keppel Corp (SGX:BN4)’s offer, we believe SPH shareholders will likely go for Cuscaden’s offer as this provides a higher total consideration value and value certainty.

SingTel's 1H22 Results - Phillip Securities 2021-11-17: Australia & India Mobile The Outperformers

SGinvestors.io

SINGTEL (SGX:Z74)

SingTel's 1H22 Results - Australia & India Mobile The Outperformers

• SingTel (SGX:Z74)'s 1H22 EBITDA / PATMI met our expectations at 48%/47% of FY22e estimates.
• Australia consumer EBITDA rebounded 28% y-o-y in 1H22 to A$918mil (excluding NBN). Mobile service revenue expanded almost 10% to A$1.84bn, supported by a 12% rise in ARPU.
• SingTel's interim dividend was cut for the 2nd consecutive year to S$0.045 (1H21: S$0.051, 1H20: S$0.068). Dividend guidance is 60%-80% payout of underlying net profit.

Aoxin Q&M Dental Group - UOB Kay Hian 2021-11-18: A Strong Turnaround; High Growth Potential From Precision Medicine Capabilities

SGinvestors.io

AOXIN Q & M DENTAL GRP LIMITED (SGX:1D4)

Aoxin Q&M Dental Group - A Strong Turnaround; High Growth Potential From Precision Medicine Capabilities

• Aoxin Q&M’s earnings are expected to turn around in 2022 (S$12m profit vs S$0.1m loss in 2021), with contributions from the newly-acquired Acumen and improved performance of its China dental business.
• Expansion into the COVID-19 ART testing business should complement Acumen’s existing PCR testing business. Also, Acumen’s expertise in the precision medicine space could open up many new future revenue streams.