Keppel Corporation - UOB Kay Hian 2021-10-29: Strong Recovery In 3Q21; Setting Up For A Robust 2022

SGinvestors.io

KEPPEL CORPORATION LIMITED (SGX:BN4)

Keppel Corporation - Strong Recovery In 3Q21; Setting Up For A Robust 2022

• Keppel Corporation’s 9M21 revenue rose 14% y-o-y with all four business segments contributing to the strong performance.
• With the prospects of a better-than-expected final dividend, completion of the SPH acquisition and finalisation of the merger with Sembcorp Marine, the stage appears to be set for a period of solid share price performance in 2022. Maintain BUY.

Keppel Pacific Oak US REIT 3Q21 - UOB Kay Hian 2021-10-29: Benefitting From In-Migration & Growth At Magnet Cities

SGinvestors.io

KEPPEL PACIFIC OAK US REIT (SGX:CMOU)

Keppel Pacific Oak US REIT 3Q21 - Benefitting From In-Migration And Growth At Magnet Cities

• Growth in Keppel Pacific Oak US REIT's NPI of 5.6% y-o-y in 3Q21 was attributed to the acquisition of Bridge Crossing in Nashville and 105 Edgeview in Denver, which was completed on 20 Aug 21, and better performance from existing properties.
• Keppel Pacific Oak US REIT provides a unique exposure to in-migration and growth at magnet cities. Growth in rents for growth markets has bottomed and reversed to positive 0.2% in Sep 21.

Keppel DC REIT 3Q21 Operational Update - Phillip Securities 2021-10-29: Assuredly Accretive Acquisitions

SGinvestors.io

KEPPEL DC REIT (SGX:AJBU)

Keppel DC REIT 3Q21 Operational Update - Assuredly Accretive Acquisitions

• Keppel DC REIT (SGX:AJBU)'s 3Q21/9M21 DPU of S$0.02462/S$0.07386 grew 4.5%/9.7% y-o-y. 9M21 DPU was in line, at 75% of our FY21e estimate.
• S$281mil in completed and proposed investments year-to-date could provide more than 6% in DPU accretion for KDC.
• Maintain BUY on the resilient data centre demand. FY21e/22e DPU forecast for Keppel DC REIT dips 0.3%/4.1% after we adjust our forecasts to factor in recent transactions. DDM-based target price for Keppel DC REIT (COE 5.75%) cut by 5.3% from S$3.20 to S$3.03 due to lower FY21e-FY25e DPU estimates.

Del Monte Pacific - Phillip Securities 2021-10-26: Turnaround Underway; Initiate Coverage With BUY

SGinvestors.io

DEL MONTE PACIFIC LIMITED (SGX:D03)

Del Monte Pacific - Turnaround Underway; Initiate Coverage With BUY

• Del Monte Pacific's US subsidiary Del Monte Foods Inc. (DMFI) turned profitable in FY21. It had been suffering losses since the acquisition in 2014. Loss-making factories were closed, low margin products exited, new products introduced and more distribution channels were established.
• Del Monte Philippines Inc. (DMPI) enjoys dominant market shares as high as 90% in the Philippines. Growth is expected from a new dairy product line, expanding distribution points and exports of fresh pineapples into China.

CapitaLand Integrated Commercial Trust 3Q21 Update - Phillip Securities 2021-10-25: Containment Measures Slowing Recovery

SGinvestors.io

CAPITALAND INTEGRATED COMM TR (SGX:C38U)

CapitaLand Integrated Commercial Trust 3Q21 Update - Containment Measures Slowing Recovery

• CapitaLand Integrated Commercial Trust (SGX:C38U)'s 9M21 revenue and NPI in line at 71.9% and 74.6% of our FY21e forecast respectively.
• Improving tenant sentiment and leasing enquiries, but operating metrics dampened by tightened restrictions in 3Q21, affecting physical viewings and tenant sales.
• Maintain ACCUMULATE on CapitaLand Integrated Commercial Trust with DDM-based (COE 6.27%) target price of S$2.54. Stock catalysts expected from further asset enhancement initiatives and portfolio reconstitution.

Civmec - UOB Kay Hian 2021-10-29: 1QFY22 Results Above Expectation; Positive Outlook With More Opportunities

SGinvestors.io

CIVMEC LIMITED (SGX:P9D)

Civmec - 1QFY22 Results Above Expectation; Positive Outlook With More Opportunities

• Civmec (SGX:P9D)'s 1QFY22 net profit of A$11m (+62% y-o-y) was slightly above our expectations, at 26% of our full-year estimate.
• Civmec remains positive on its future outlook given the robust and growing orderbook, which has increased 21% y-o-y to A$1.15b. In addition, Civmec sees a strong pipeline of tendering opportunities across all the sectors it operates in, with emerging opportunities in new sectors including battery minerals, rare earths and hydrogen plants.
• Maintain BUY and target price of S$0.98.

Uni-Asia Group - UOB Kay Hian 2021-10-28: Under-The-Radar Drybulk Operator Set To Benefit From High Freight Rates

SGinvestors.io

UNI-ASIA GROUP LIMITED (SGX:CHJ)

Uni-Asia Group - Under-The-Radar Drybulk Operator Set To Benefit From High Freight Rates

• Uni-Asia Group (SGX:CHJ) is a prime beneficiary and laggard of the more than 210% year-to-date spike in dry bulk freight rates. We believe freight rates will stay elevated at least until end-22 given the:
  1. supply squeeze as vessels are stuck longer in ports,
  2. strong demand for various commodities, and
  3. dearth of drybulk newbuilds as buyers stay on the sidelines in anticipation of new ESG standards on vessel emissions.
• We initiate coverage on Uni-Asia with a BUY. Target price: S$2.34.

Frasers Centrepoint Trust - Maybank Kim Eng 2021-10-27: Retail Recovery Play

SGinvestors.io

FRASERS CENTREPOINT TRUST (SGX:J69U)

Frasers Centrepoint Trust - Retail Recovery Play

Resilient suburban retail metrics

• Frasers Centrepoint Trust (SGX:J69U)’s revenue and NPI jumped ~160% y-o-y and ~213% y-o-y in 2H21, but was both lower at ~4% h-o-h, while its FY21 DPU at S$0.1209 was strong at +33.7% y-o-y; it missed our estimates but was ahead of the street.
• We continue to see suburban malls leading Singapore’s retail sector recovery in its long reopening phase, with Frasers Centrepoint Trust’s resilient occupancies and improving rental reversions from its more sizeable AUM supporting DPU recovery in FY22.

Keppel REIT - Maybank Kim Eng 2021-10-26: Leasing Up

SGinvestors.io

KEPPEL REIT (SGX:K71U)

Keppel REIT - Leasing Up

Stronger leasing, slower DPU growth

• Keppel REIT (SGX:K71U)’s distributable income jumped 20.8% y-o-y in 9M21, and 44.0% y-o-y in 3Q21, with contributions from Victoria Police Centre (in Melbourne), Pinnacle Office Park (Sydney) and Keppel Bay Tower (Singapore). The performance was in line with our estimates and the street.
• Keppel REIT's portfolio occupancy rose to 97.1% (from 96.7% in 2Q21), helped by an improvement at OFC, ORQ, Keppel Tower and its Australian properties. Office demand tailwinds have strengthened Keppel REIT’s fundamentals, but DPU growth remains unexciting versus peers.

Keppel REIT 9M21 Updates - UOB Kay Hian 2021-10-27: The Hunter Or The Hunted?

SGinvestors.io

KEPPEL REIT (SGX:K71U)

Keppel REIT 9M21 - The Hunter Or The Hunted?

• Keppel REIT’s 9M21 business update was in line with our expectations. Rental reversion weakened to just +1% in 3Q21 but committed occupancy edged higher by 0.4ppt q-o-q to 97.1%.
• We postulate that SPH REIT (SGX:SK6U) could be the acquirer and Keppel REIT the acquiree in the merger between the two S-REITs to prevent conflict of interest. SPH REIT has a larger debt head room of S$667m based on aggregate leverage at 4 % and lower cost of debt at 1.84%.

Mapletree Logistics Trust 2QFY22 - UOB Kay Hian 2021-10-26: Stepping Up The Pace Of Acquisitions In 2HFY22

SGinvestors.io

MAPLETREE LOGISTICS TRUST (SGX:M44U)

Mapletree Logistics Trust 2QFY22 - Stepping Up The Pace Of Acquisitions In 2HFY22

• Mapletree Logistics Trust (SGX:M44U)’s 2QFY22 results were within our expectations with portfolio occupancy stable at 97.8% and positive rental reversion of +2.4%. Mapletree Logistics Trust completed four acquisitions worth only S$351m in 1HFY22 but the pace of acquisitions is expected to pick up substantially in 2HFY22.

Metech International - UOB Kay Hian 2021-10-27: Sparkling Future With Lab-Grown Diamonds

SGinvestors.io

METECH INTERNATIONAL LTD (SGX:V3M)

Metech International - Sparkling Future With Lab-grown Diamonds

• Metech International (SGX:V3M) recently established a Singapore JV company, Asian Eco Technology Pte. Ltd. (AET) to manufacture and distribute lab-grown diamonds, which are identical to a mined diamond, both chemically and physically.
• AET has the technological capabilities to produce the highest grade of lab-grown diamonds that are used for jewellery. In addition, diamonds are also commonly used for industrial applications in medical equipment, aerospace, semiconductors, among others.

iFAST Corporation's 3Q21 Update - UOB Kay Hian 2021-10-26: 5-Year Plan Provides A Glimpse Of Upward Trajectory

SGinvestors.io

IFAST CORPORATION LTD. (SGX:AIY)

iFAST Corporation's 3Q21 Update - 5-Year Plan Provides A Glimpse Of Upward Trajectory

• Overall, iFAST’s AUA has continued to scale up at a faster-than-expected pace to S$18.38b (+46% y-o-y, +27% q-o-q), helping the fintech firm achieve greater operating scale. Net inflows of client assets remained healthy at S$0.87b in 3Q21, leading to net inflows of S$2.99b for 9M21.
• iFAST remains committed to its previously-stated group AUA target of S$100b by 2028, implying a CAGR of 27% over the next seven years. Maintain BUY.

CapitaLand Integrated Commercial Trust 3Q21 Business Update - UOB Kay Hian 2021-10-25: Good Things Come To Those Who Wait For The Reopening

SGinvestors.io

CAPITALAND INTEGRATED COMM TR (SGX:C38U)

CapitaLand Integrated Commercial Trust 3Q21 Business Update - Good Things Come To Those Who Wait For The Reopening

• CapitaLand Integrated Commercial Trust (SGX:C38U)’s retail portfolio achieved stable occupancy of 96.4% but its office portfolio suffered transitory vacancies at AST2 and CapitaGreen. Vaccinated employees are allowed to work from their office starting 1 Jan 22, leading to an improved physical occupancy for CapitaLand Integrated Commercial Trust’s office buildings and bringing relief to its downtown malls.

Mapletree Logistics Trust - Maybank Kim Eng 2021-10-26: Growth, Uninterrupted

SGinvestors.io

MAPLETREE LOGISTICS TRUST (SGX:M44U)

Mapletree Logistics Trust - Growth, Uninterrupted

Another steady quarter, targeting AUM growth again

• Mapletree Logistics Trust (SGX:M44U)’s 2Q22 DPU rose 5.7% y-o-y and 0.6% q-o-q, helped by higher rental income and contributions from S$1.6b in acquisitions completed in FY21. DPU visibility is strong, underpinned by resilient occupancies due to steady demand growth, with upside to rents in FY23E, for its well-placed logistics AUM.

Keppel DC REIT - CGS-CIMB Research 2021-10-25: Low Cost Of Funding Supports Acquisitions

SGinvestors.io

KEPPEL DC REIT (SGX:AJBU)

Keppel DC REIT - Low Cost Of Funding Supports Acquisitions

• Keppel DC REIT (SGX:AJBU)'s 9MFY21 DPU of S$0.074 (+9.7% y-o-y) is in line at 74% of our FY21 forecast.
• The stronger results were driven by acquisitions, AEIs, and new leases.
• Reiterate ADD. Keppel DC REIT’s healthy gearing and relatively low cost of funding would provide it ample flexibility to accelerate its pace of acquisitions.

Suntec REIT - Maybank Kim Eng 2021-10-25: A Better Balance

SGinvestors.io

SUNTEC REAL ESTATE INV TRUST (SGX:T82U)

Suntec REIT - A Better Balance

Suntec REIT's 3Q21 in line vs MKE, stay at HOLD: Prefer CICT

• Suntec REIT (SGX:T82U)’s 3Q21 DPU rose 20.8% y-o-y and 5.8% q-o-q, underpinned by the better performances of its office and retail portfolio. While occupancies in Singapore improved, office reversions look set to moderate, with rental outlook weak for retail into FY22E.
• We raised Suntec REIT's DPUs forecast by ~4% and DDM-based target price to S$1.40 (COE: 7.9%, LTG: 1.5%) to reflect the recently completed deals.

CapitaLand Integrated Commercial Trust - Maybank Kim Eng 2021-10-24: In Recovery Mode; Visible Growth Drivers Into FY22e

SGinvestors.io

CAPITALAND INTEGRATED COMM TR (SGX:C38U)

CapitaLand Integrated Commercial Trust - In Recovery Mode; Visible Growth Drivers Into FY22e

• CapitaLand Integrated Commercial Trust (SGX:C38U)’s revenue and NPI grew q-o-q in 3Q21 at 5.8% and 7.8% respectively, underpinned by rising contributions from across its retail, office and integrated development assets. While occupancies were mainly lower, its retail rental reversion trend (especially for suburban malls) is on the right trajectory, while strong leasing at CapitaSpring will support office NPI growth in FY22E.

Suntec REIT 3Q21 Earnings - UOB Kay Hian 2021-10-25: Continued Growth, Both Locally & Overseas

SGinvestors.io

SUNTEC REAL ESTATE INV TRUST (SGX:T82U)

Suntec REIT 3Q21 Earnings - Continued Growth, Both Locally & Overseas

• Suntec REIT achieved DPU growth of 20.8% y-o-y with a recovery at Suntec City Mall, growth from 477 Collins Street in Melbourne and contributions from Minster Building and Nova Properties in London. Its office portfolio benefits from cumulative positive reversions in the past 13 quarters.
• Suntec City Mall will be repositioned for activity-based and experiential concepts.

CapitaLand Integrated Commercial Trust - CGS-CIMB Research 2021-10-22: A Subdued Quarter

SGinvestors.io

CAPITALAND INTEGRATED COMM TR (SGX:C38U)

CapitaLand Integrated Commercial Trust - A Subdued Quarter

• CapitaLand Integrated Commercial Trust’s 3Q21 gross revenue/NPI were within expectations, at 24.5%/25% of our FY21F forecasts.
• Asset enhancement plans for Raffles City Singapore are in the works.
• Reiterate ADD rating on CapitaLand Integrated Commercial Trust with an unchanged DDM-based target price.

iX Biopharma - Phillip Securities 2021-10-20: Multiple Share Price Catalyst

SGinvestors.io

IX BIOPHARMA LTD. (SGX:42C)

iX Biopharma - Multiple Share Price Catalyst

• Outlicensing of Wafermine for Phase 3 trials is a major share price catalyst for iX Biopharma (SGX:42C) to enter the estimated US$19bn global opioid industry.
• Plans for a Hong Kong IPO could trigger a price discovery of at least a HK$1.5bn (S$260mil) market valuation for the pharmaceutical business.

DBS OCBC 3Q21 Earnings Preview - UOB Kay Hian 2021-10-22: Resilient Earnings; Stable Asset Quality

SGinvestors.io

OVERSEA-CHINESE BANKING CORP (SGX:O39) DBS GROUP HOLDINGS LTD (SGX:D05)

DBS OCBC 3Q21 Earnings Preview - Resilient Earnings; Stable Asset Quality

• OCBC and UOB are scheduled to release their 3Q21 results on 3 Nov 21 (Wednesday), followed by DBS on 5 Nov 21 (Friday). We expect banks to report resilient earnings.
• We see a pick-up in loan growth partially offset by NIM compression. With asset quality stabilising, we expect DBS to benefit from write-back in general provisions and OCBC to see moderation in credit costs. We forecast DBS and OCBC to achieve net profit of S$1,622m (+25% y-o-y and -5% q-o-q) and S$1,163m (+13% y-o-y and flat q-o-q) respectively for 3Q21.

China Sunsine Chemical - CGS-CIMB Research 2021-10-20: ASP Uptrend Points To A Stronger 4Q21

SGinvestors.io

CHINA SUNSINE CHEM HLDGS LTD (SGX:QES)

China Sunsine Chemical - ASP Uptrend Points To A Stronger 4Q21

• Rubber accelerator prices have seen a strong uptick over the past three months. This should bode well for China Sunsine’s profit spread in 4Q21F.
• While 3Q21F net profit could show some q-o-q weakness, we believe China Sunsine is on track to recording a 115% y-o-y net profit growth in FY21F.

Wilmar International 3Q21 Earnings Preview - UOB Kay Hian 2021-10-21: Better Contributions From Up-Midstream Operations

SGinvestors.io

WILMAR INTERNATIONAL LIMITED (SGX:F34)

Wilmar International 3Q21 Earnings Preview - Better Contributions From Up-Midstream Operations

• Wilmar International is scheduled to release its 3Q21 financial summary on 29 Oct 21. We are expecting a core net profit of US$450m-480m. Better performance is expected to come from plantation & sugar mills and feed & industrial products to offset the weaker margins of consumer products. Its 3Q21 performance is expected to be driven by higher ASP for CPO and sugar, and better soybean crushing margin in China.

Thai Beverage - UOB Kay Hian 2021-10-23: Cheers To Thailand’s Reopening; Expected Lifting Of Alcohol Ban

SGinvestors.io

THAI BEVERAGE PUBLIC CO LTD (SGX:Y92)

Thai Beverage - Cheers To Thailand’s Reopening; Expected Lifting Of Alcohol Ban

• Thailand’s government plans to reopen the country’s international borders to 10 countries in a bid to revitalise its battered tourism sector. The authorities are also considering lifting Thailand’s ongoing alcohol ban in restaurants. With the arrival of vaccinated tourists, we think this would help boost alcohol consumption and volume in Thailand. In our view, this remains largely underappreciated by the market given Thai Beverage (SGX:Y92)’s attractive valuation.

Sembcorp Industries - UOB Kay Hian 2021-10-20: Towards A Brighter And Greener Future

SGinvestors.io

SEMBCORP INDUSTRIES LTD (SGX:U96)

Sembcorp Industries - Towards A Brighter And Greener Future

• Sembcorp Industries presented at the Asian GEMS conference and highlighted its medium - to long-term plan to transition towards being a greener and more sustainable business. Near-term issues such as India’s power crisis and maintenance shutdowns at some power assets appear to be well understood by the market.
• Maintain BUY.

Sembcorp Industries - A solid long-term play on the ‘greenification’ of energy.

Ascendas REIT - UOB Kay Hian 2021-10-20: Outlook Brightens, Redevelopment Opportunities Beckon

SGinvestors.io

ASCENDAS REAL ESTATE INV TRUST (SGX:A17U)

Ascendas REIT - Outlook Brightens, Redevelopment Opportunities Beckon

• Ascendas REIT (SGX:A17U) provided a positive business update for 3Q21 as the outlook brightens. It achieved positive rental reversion of 3.7% driven by Singapore and the US. Occupancies for Singapore and Australia edged higher by 0.6ppt and 1.7ppt q-o-q respectively to 88.5% and 97.5%.
• Having completed the development of Grab HQ, Ascendas REIT could move on to redevelop TÜV SÜD PSB Building at Science Park I.
• Ascendas REIT provides a resilient 2022 distribution yield of 5.5%. Maintain BUY.

Frasers Logistics & Commercial Trust - UOB Kay Hian 2021-10-19: Revaluation Gains Enhance Debt Headroom

SGinvestors.io

FRASERS LOGISTICS & COMMERCIAL TRUST (SGX:BUOU)

Frasers Logistics & Commercial Trust - Revaluation Gains Enhance Debt Headroom

• We expect Frasers Logistics & Commercial Trust to recognise gain in fair value of investment properties at S$483.6m for its 2HFY21 results due to cap rate compressions for its logistics properties in Australia and Europe. We expect NAV per unit to increase by S$0.13 or 12% to S$1.24 while aggregate leverage would be lowered by 2.3ppt to 34.1%. We estimate that debt headroom will increase S$244m or 20% to S$1,451m.

Agribusiness - CGS-CIMB Research 2021-10-19: Key Predictions From POINTERS 2021

SGinvestors.io

WILMAR INTERNATIONAL LIMITED (SGX:F34) FIRST RESOURCES LIMITED (SGX:EB5) GOLDEN AGRI-RESOURCES LTD (SGX:E5H)

Agribusiness - Key Predictions From POINTERS 2021

• Presenters at POINTERS forecast average CPO price of RM4.1k/tonne for 2021F. This means CPO price could decline from the current RM5.1k/tonne.
• The expectation for CPO price to fall hinges on supply recovery for sunflower oil, soybean oil and palm oil in the coming months.
• There is upside to our average CPO price view of RM3.7k/RM2.9k for 2021F/2022F due to supply shortfall stemming from labour shortage issues.

Nine papers presented at the Palm Oil Internet Seminar (POINTERS)

Ascendas REIT - CGS-CIMB Research 2021-10-19: Improving Operating Metrics

SGinvestors.io

ASCENDAS REAL ESTATE INV TRUST (SGX:A17U)

Ascendas REIT - Improving Operating Metrics

• Ascendas REIT reported positive rental reversions and higher portfolio occupancy in 3Q21.
• Strong balance sheet with aggregate leverage at 37.4% at end-3Q21 provides room for inorganic growth.
• Reiterate ADD with an unchanged DDM-based target price.

Ascendas REIT's 3Q21 business update

Singapore Banks Sitting On Massive Liquidity - Maybank Kim Eng 2021-10-19: Balance Sheet Balancing

SGinvestors.io

DBS GROUP HOLDINGS LTD (SGX:D05) OVERSEA-CHINESE BANKING CORP (SGX:O39) UNITED OVERSEAS BANK LTD (SGX:U11)

Singapore Banks Sitting On Massive Liquidity - Balance Sheet Balancing

Deploying liquidity could be a strategic advantage

• Singapore banks are sitting on massive liquidity. How they deploy could determine profitability on the other side of COVID-19. DBS (SGX:D05) has been mostly parking excess at central banks, while UOB (SGX:U11) has increased its securities holdings. For the latter, this may provide a near-term margin boost.

Jiutian Chemical Group - CGS-CIMB Research 2021-10-18: Dimethylformamide (DMF) Prices Reach Record Highs

SGinvestors.io

JIUTIAN CHEMICAL GROUP LIMITED (SGX:C8R)

Jiutian Chemical Group - Dimethylformamide (DMF) Prices Reach Record Highs

• DMF prices continued their strong uptrend in 3Q21F, reaching a record high of RMB18.2k/ton last week. ASP gains should offset raw material cost hikes.
• Despite lower volumes (impact from Henan floods and plant maintenance) in 3Q21F, we expect Jiutian Chemical (SGX:C8R) to post net profit growth of 11% y-o-y to RMB58m.
• Reiterate ADD rating on Jiutian Chemical with unchanged target price based on 5.7x CY22F P/E.

Civmec Limited - UOB Kay Hian 2021-10-19: Leading Contractor With Huge Orderbook In Defence & Commodity Sectors

SGinvestors.io

CIVMEC LIMITED (SGX:P9D)

Civmec Limited - Leading Contractor With Huge Orderbook In Defence And Commodity Sectors

• Civmec is on track for record earnings in FY22 (+18% y-o-y) as it delivers a A$1b orderbook for clients in the defence and commodity sectors. We believe the market has overlooked the huge potential of its defence business, which just started in FY21 and has high barriers to entry. Its resources and energy segments are set to enjoy stronger construction demand as clients seek to increase capacity amid high commodity prices.

PropNex - UOB Kay Hian 2021-10-18: Bullish Update With Earnings Momentum To Continue Into 2022

SGinvestors.io

PROPNEX LIMITED (SGX:OYY)

PropNex - Bullish Update With Earnings Momentum To Continue Into 2022

• PropNex (SGX:OYY) provided a bullish near to medium term update on its business and earnings prospects at the Asian GEMS conference. It does not believe that 2021 will be its peak earnings and that over the next few quarters, it will be able to maintain its recent earnings momentum given its market share increases.
• Maintain BUY.

PropNex presented a bullish update of its prospects at our Asian GEMS conference.

SIA Engineering - CGS-CIMB Research 2021-10-15: Revving Up The Engines

SGinvestors.io

SIA ENGINEERING CO LTD (SGX:S59)

SIA Engineering - Revving Up The Engines

• Line maintenance services to be driven by higher flight activity from recently opened VTLs in Singapore. Rollout of further VTLs expected in 2HFY22F.
• Return-to-service of grounded planes and dismantling of Singapore Airlines’ A380 planes should accelerate SIA Engineering’s return to profitability in FY22F.
• We prefer SIA Engineering to SIA due to its low reliance on passenger load. SIA Engineering's valuations currently look cheap at 1.6x CY21F P/BV (-1.5 standard deviation from mean). Maintain ADD.

Ascendas REIT - Maybank Kim Eng 2021-10-20: New Economy Heavyweight, Still Our Top Pick

SGinvestors.io

ASCENDAS REAL ESTATE INV TRUST (SGX:A17U)

Ascendas REIT - New Economy Heavyweight, Still Our Top Pick

• Ascendas REIT (SGX:A17U) saw improved occupancies in Singapore and Australia in 3Q21, and better rental reversions, underpinned by its Singapore business spaces, high-specs industrial & data centres, and logistics & distribution centres.

Keppel Corporation - Phillip Securities 2021-10-19: On Track To Exceed S$3-5bn Divestment Target Before 2023

SGinvestors.io

KEPPEL CORPORATION LIMITED (SGX:BN4)

Keppel Corporation - On Track To Exceed S$3-5bn Divestment Target Before 2023

• Keppel Corp's final resolution with Brazilian company Sete Brasil now effective. The engineering, procurement and construction (EPC) contracts for six oil drilling rigs will be amicably terminated, with no penalties or refunds due to any party.
• M1 will divest its network assets to Keppel DC REIT for a proposed consideration of S$580mil. We expect M1 to recycle the capital into new growth initiatives like the Bifrost Cable System.

CapitaLand Investment - Phillip Securities 2021-10-18: Charting New Growth

SGinvestors.io

CAPITALAND INVESTMENT LIMITED (SGX:9CI)

CapitaLand Investment - Charting New Growth

• Stable and recurring revenues from fees income and real estate investment contributing ~20% and ~80% to CapitaLand Investment's EBITDA respectively.
• Growth in fund management and lodging AUM to drive CapitaLand Investment's fee income while capital recycling and new economy assets remain in focus.

Aztech Global - CGS-CIMB Research 2021-10-15: Commendable Execution In 3Q21

SGinvestors.io

AZTECH GLOBAL LTD. (SGX:8AZ)

Aztech Global - Commendable Execution In 3Q21

• Constrained by component shortages, Aztech's 3Q21 revenue was below expectations at 22.5%/21.7% of our/Bloomberg consensus full-year forecast.
• Aztech's 3Q21 core net profit was slightly below expectations at 23.8% of our/ Bloomberg consensus full-year forecast.
• Reiterate ADD. Our target price for Aztech is lowered as we adjust our FY21F-23F revenue expectations due to the ongoing component shortages.

Singapore Banks 3Q21 Earnings Forecast - CGS-CIMB Research 2021-10-18: Holding Steady

SGinvestors.io

UNITED OVERSEAS BANK LTD (SGX:U11) OVERSEA-CHINESE BANKING CORP (SGX:O39) DBS GROUP HOLDINGS LTD (SGX:D05)

Singapore Banks 3Q21 Earnings Forecast - Holding Steady

• We expect banks earnings to stay stable till U.S. Fed rate hikes begin. ECL to reflect lower global GDP growth could throw a spanner in the works.
• Watch out for:
  • DBS (SGX:D05) – writebacks on management overlays and higher dividends,
  • OCBC (SGX:O39) – Chinese property exposure,
  • UOB (SGX:U11) – stability of ASEAN portfolio.

Jason Marine Group - SAC Capital 2021-10-19: Trading Below Cash Value

SGinvestors.io

JASON MARINE GROUP LIMITED (SGX:5PF)

Jason Marine Group - Trading Below Cash Value

• Jason Marine Group (SGX:5PF) is a systems integrator and service provider for marine communication, navigation and automation systems installed on marine vessels and offshore O&G platforms.
• Jason Marine offers turnkey solutions as well as maintenance and support services and airtime services. It has service centres located in Singapore, China, Thailand, Malaysia and Indonesia.

Oceanus Group - UOB Kay Hian 2021-10-19: Gaining Traction In The Food Security Space Which Offers Huge Opportunities

SGinvestors.io

OCEANUS GROUP LIMITED (SGX:579)

Oceanus Group - Gaining Traction In The Food Security Space Which Offers Huge Opportunities

• The recent establishment of Sino Food, a new subsidiary appointed as China Resources’ frozen food distributor, marks an important milestone for Oceanus as it enhances the latter’s presence in the food security space.
• Oceanus’s track record in the food industry, from farming to distribution, puts it in a good position to win more businesses in the food security space, which has become a key focus of many countries due to the recent disruptions caused by COVID-19 to the food supply chain.

SATS - CGS-CIMB Research 2021-10-18: Travel Demand Pent Up But Priced In

SGinvestors.io

SATS LTD. (SGX:S58)

SATS - Travel Demand Pent Up But Priced In

• We expect SATS (SGX:S58)’s aviation food revenue to recover to > 60% of pre-COVID-19 level by Oct-Dec 2022F. It may only return to normal levels in 2023F. Its ground handling and cargo revenues should recover faster on the back of resumption of passenger flights, and higher belly freight capacity.
• SATS's share price has re-rated by ~42% in past 12 months; we think the recovery theme is now priced in. Downgrade to HOLD, with a higher target price.

ARA LOGOS Logistics Trust - UOB Kay Hian 2021-10-18: Financial Prowess Through Merger To Enhance Scale

SGinvestors.io

ARA LOGOS LOGISTICS TRUST (SGX:K2LU)

ARA LOGOS Logistics Trust - Financial Prowess Through Merger To Enhance Scale

• ESR-REIT has offered to acquire all units of ARA LOGOS Logistics Trust for S$0.095 in cash and 1.6765 new ESR-REIT units. The merger more than doubles total assets to S$5.4b, enabling ARA LOGOS Logistics Trust to leapfrog from the 19th position to become the ninth-largest S-REIT.
• New sponsor ESR Group provides New Economy pipeline exceeding US$50b, of which US$2b is visible and executable. Pro forma 2020 DPU is estimated to increase 8.2% to 5.512 cents due to lower cost of debts and payment of upfront land premium.

Singapore Airlines (SIA) - CGS-CIMB Research 2021-10-15: Time To Look At Downside Risks

SGinvestors.io

SINGAPORE AIRLINES LTD (SGX:C6L)

Singapore Airlines (SIA) - Time To Look At Downside Risks

• Downgrade SIA (SGX:C6L) from Add to HOLD, with a higher target price of S$5.76, still based on P/BV of 1.06x, 1 standard deviation above mean, against our adjusted BVPS.
• SIA's share price has re-rated 59% over the past year, and we think a lot of the future good news is already in the price.

SIA's share price jumped on news of additional VTLs …

Property Development & Inventory - CGS-CIMB Research 2021-10-15: A Quieter September

SGinvestors.io

CITY DEVELOPMENTS LIMITED (SGX:C09) UOL GROUP LIMITED (SGX:U14)

Property Development & Inventory - A Quieter September

• September 2021 monthly home sales declined 37.2% y-o-y and 31.4% m-o-m.
• Year-to-date sales volume remains robust, amid moderated price appreciation.
• Reiterate sector Overweight on valuations. Sector top picks: CIT and UOL.

Lower September monthly home sales

ESR REIT & ARA LOGOS Logistics Trust - CGS-CIMB Research 2021-10-15: Propose Merger

SGinvestors.io

ARA LOGOS LOGISTICS TRUST (SGX:K2LU) ESR-REIT (SGX:J91U)

ESR REIT & ARA LOGOS Logistics Trust - Propose Merger

• Enlarged REIT to see acceleration in acquisitions and more resilient income.
• It is positioning itself as a New Economy REIT in the next 18-24 months.
• A faster acquisition pace and non-core assets disposal would rerate ELOG.

Fairly valuing ARA LOGOS Logistics Trust at 52-week high of S$0.95 per unit

Fortress Minerals - Phillip Securities 2021-10-15: Hit By Production Disruptions

SGinvestors.io

FORTRESS MINERALS LIMITED (SGX:OAJ)

Fortress Minerals - Hit By Production Disruptions

• Fortress Minerals (SGX:OAJ)'s 2Q22 results were below expectations. 1H22 revenue and PATMI at 39%/34% of our forecasts. Sales volume was lower than expected. ASP of US$141.82/DMT in line with our forecast of US$140/DMT.
• Production disruptions at Bukit Besi Mine during Phase 1 nationwide Total Lockdown under National Recovery Plan, which lasted for approximately five weeks.

Koufu Group - UOB Kay Hian 2021-10-14: Well-Positioned For Recovery From Further Reopening

SGinvestors.io

KOUFU GROUP LIMITED (SGX:VL6)

Koufu Group - Well-Positioned For Recovery From Further Reopening

• Business in Singapore is expected to improve with easing restrictions and further reopening of its borders. This comes as a higher percentage of its population is vaccinated. Visitors to malls and casinos should increase gradually, while those to heartland areas should remain resilient.
• Koufu (SGX:VL6) is in a good position to emerge stronger against its competitors post-pandemic, given its good expansion strategy and strong balance sheet. Maintain BUY.

Aztech Global - Maybank Kim Eng 2021-10-15: Resetting Expectations

SGinvestors.io

AZTECH GLOBAL LTD. (SGX:8AZ)

Aztech Global - Resetting Expectations

Aztech's 3Q21 earnings missed expectation; but most negatives look priced in

• Aztech Global (SGX:8AZ)'s 3Q21 PATMI of S$18m (+3% y-o-y) missed and accounted for 60%/63% of our/street’s estimates. This was due to the worsening of components shortage.
• We cut FY21-23E PATMI forecast for Aztech Global by 11% to reflect FY21E order book, and lowered expectations for FY22-23E. Our target price for Aztech Global falls to S$1.26, as we roll forward to 10x FY22E P/E (from 18x FY21E), a discount vs global CMS/ODM peers at 11x/12x respectively to account for risks of further earnings disappointment.