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

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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

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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

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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

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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

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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

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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

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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

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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

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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.

Q&M Dental Group - Maybank Kim Eng 2021-11-15: Revert To Core; Stay Buy With Lower Target Price

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

Q&M Dental Group - Revert To Core; Stay Buy With Lower Target Price

Q&M's 3Q21 net profit in line

• Q&M Dental (SGX:QC7)’s 3Q21 net profit of S$9.5m (+68.7% y-o-y; +13.5% q-o-q) was largely in line with MKE and street’s expectations. This took 9M21 earnings to S$27.3m (+98.3% y-o-y) and achieved ~78% of our full-year estimate.
• Q&M Dental Group declared a third dividend of S$0.01 (9M21: S$0.03), translating into an attractive yield of 6.9%. Maintain BUY with a lower target price based on 22x FY22E P/E, which implies ~15% discount to its peers.

Frencken Group - UOB Kay Hian 2021-11-18: No Surprises In 3Q21 Business Update

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FRENCKEN GROUP LIMITED (SGX:E28)

Frencken Group - No Surprises In 3Q21 Business Update

• Frencken’s 3Q21 earnings of S$14.8m (+10.7% y-o-y, -10.8% q-o-q) took 9M21 net profit to 77% of our full-year estimate. The business update presented no surprises, as revenue continued to be led by a positive momentum in the semiconductor segment, driving improved operating leverage.
• We expect the semiconductor segment to continue driving growth going forward, driven by the accelerating development of 5G technology. Maintain BUY.

Ascendas REIT - UOB Kay Hian 2021-11-17: Redevelopment Of 1 Science Park Drive

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ASCENDAS REAL ESTATE INV TRUST (SGX:A17U)

Ascendas REIT - Redevelopment Of 1 Science Park Drive

• 1 Science Park Drive will be redeveloped into a life science and innovation campus comprising three Grade-A business park towers with column-free floor plates of more than 3,000sqm and an event plaza. Ascendas REIT owns 34% in the redevelopment based on its GFA contribution. On a stabilised basis, the 34% stake provides NPI yield of 6.3% post-transaction cost and increase pro forma 2020 DPU by 0.5%.
• Ascendas REIT provides 2022 distribution yield of 5.3%. Maintain BUY.

SPH - UOB Kay Hian 2021-11-16: Cascaden Returns With A Superior Offer

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SINGAPORE PRESS HLDGS LTD (SGX:T39)

SPH - Cascaden Returns With A Superior Offer

• Cuscaden announced that it had submitted an improved offer with a full cash offer of S$2.36/share or cash-plus-share offer of S$2.40/share for all of SPH’s shares, at a consideration of around S$3.9b. Both options are superior to Keppel’s original cash-plus-share offer of S$2.35/share.
• Barring any new offer, we recommend shareholders to ACCEPT the highest offer, which is currently Cuscaden’s offer which provides higher consideration and price stability.

Raffles Medical Group - OCBC Investment 2021-11-18: Improving Outlook

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RAFFLES MEDICAL GROUP LTD (SGX:BSL)

Raffles Medical Group - Improving Outlook

• Expansion of vaccinated travel lane scheme and improving regional mobility should support a gradual recovery of foreign patients into Singapore.
• Fair value estimate for Raffles Medical is lifted to S$1.65 as we update our estimates to reflect a firmer recovery outlook in FY22E.
• Raffles Medical has a steady ESG rating since March 2019 for its ESG track record, which pegs it at the higher end of global industry ratings.

StarHub - OCBC Investment 2021-11-16: Better Guidance; Acquiring Majority Stake In HKBN JOS In Singapore & Malaysia

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STARHUB LTD (SGX:CC3)

StarHub - Better Guidance; Acquiring Majority Stake In HKBN JOS In Singapore & Malaysia

• Revising up service EBITDA margin guidance while lowering that of capex commitment.
• Strengthening regional ICT and enterprise business through latest M&A.
• Maintain fair value estimate of S$1.36 for StarHub.

Good set of numbers

Sasseur REIT - Maybank Kim Eng 2021-11-15: Short-Term China Headwinds

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SASSEUR REIT (SGX:CRPU)

Sasseur REIT - Short-Term China Headwinds

Slow quarter, better fundamentals in FY22E

• Sasseur REIT (SGX:CRPU)’s 3Q21 DPU rose 3.8% y-o-y/13.4% q-o-q, with 2.0% y-o-y/3.9% q-o-q growth in its entrusted management agreement rental income. Sales from Jul were dampened by movement restrictions following intermittent COVID outbreaks, and exacerbated by atypical warm weather during its Sep anniversary events, but occupancies improved on the back of AEIs and tenant remixing efforts, and look set to strengthen in 2022.

PropNex - SAC Capital 2021-11-19: A Tireless Property Market

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PROPNEX LIMITED (SGX:OYY)

PropNex - A Tireless Property Market

• PropNex (SGX:OYY)'s 9M21 revenue accounted for 87.9% of our previous estimates, and 9M21 net profit surpassed our forecasts by 15.6%.
• PropNex reported that its 9M21 revenue almost doubled, increasing from S$358.4m in 9M20 to S$715.5m in 9M21 mainly from higher commission income on the back of higher transactions done. Agency services accounted for S$387.5m and project marketing S$325.9m of revenue. Profit from continuing operations rose by 2.2x from S$22.8m to S$49.8m.

First Resources - Maybank Kim Eng 2021-11-16: 3Q21 Core PATMI Caught Up

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FIRST RESOURCES LIMITED (SGX:EB5)

First Resources - 3Q21 Core PATMI Caught Up

Limited upside for now; HOLD for its dividend

• First Resources (SGX:EB5)'s 3Q21 core PATMI caught up and met ours but slightly below consensus expectations. With still elevated CPO ASP, First Resources’s 4Q21 EPS will likely be flat-to-higher q-o-q.
• We lower our target price for First Resources to S$1.68 on lower 13x FY22 PER pegged at -1 standard deviation of its updated 5-year mean (previously 14x FY22 PER at -1 standard deviation of 5-year mean).

Pan-United Corporation - SAC Capital 2021-11-18: Market Leader With A Green Vision

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PAN-UNITED CORPORATION LTD (SGX:P52)

Pan-United Corporation - Market Leader With A Green Vision

• Pan-United Corporation (SGX:P52) is a ready mixed concrete (RMC) supplier that harnesses technology in the course of innovating new concrete products and processes along the supply chain. Pan-United also supplies ready mixed concrete to Malaysia and Vietnam. Singapore sales makes up 80% of Pan-United's FY20 revenue.

Hyphens Pharma International - SAC Capital 2021-11-18: Strategic Acquisition Of Novem Group

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HYPHENS PHARMA INTL LIMITED (SGX:1J5)

Hyphens Pharma International - Strategic Acquisition Of Novem Group

• Hyphens Pharma announced a S$16.3m acquisition of Novem group, S$13.8m paid in cash and remaining in shares. We estimate this could add S$12m to sales and S$1.3m to net profit in FY22E.
• The deployment of cash on hand will lift ROE to 14.0% in FY22E. Our FY22E earnings estimates is raised by 20%, and we introduced our FY23E forecast. Our revised target price for Hyphens Pharma (SGX:1J5) is 8.1% higher at S$0.40 based on DCF (WACC 14.8%).

Singapore Exchange - OCBC Investment 2021-11-15: Staying Focused On Its Core Strategies

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SINGAPORE EXCHANGE LIMITED (SGX:S68)

Singapore Exchange - Staying Focused On Its Core Strategies

• Long awaited China A50 contract competition from HKEx commenced trading from 18th October, with HKEx’s market share last estimated at ~22%.
• While near term sentiment should stay subdued given the quick start in HKEx’s A50 product, the market should continue to expand over time and provide growth opportunities to both players.
• Staying focused on its core strategies to advance its multi-asset exchange platform, widen its partnership network and grow its international presence, with the goal to increase diversification of its revenues.

Sembcorp Industries - OCBC Investment 2021-11-15: Doubling Renewables Portfolio In China

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SEMBCORP INDUSTRIES LTD (SGX:U96)

Sembcorp Industries - Doubling Renewables Portfolio In China

• Sembcorp announced acquisition of wind and solar assets for S$700m.
• Near term headwinds but transforming to focus on sustainable solutions.
• Scope for improvement as renewables portion rises.

Acquiring China wind and solar assets for S$700m

Sembcorp Marine - OCBC Investment 2021-11-15: Likely More Clarity In 1Q22

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SEMBCORP MARINE LTD (SGX:S51)

Sembcorp Marine - Likely More Clarity In 1Q22

• Waiting for updates on potential Keppel O&M and Sembcorp Marine combination.
• Continue to expect losses in 2H21 with challenges in execution.
• Hopes for more orders in 2022.

Sembcorp Marine's 3Q21 business update

Malaysia Smelting Corp - UOB Kay Hian 2021-11-15: 3Q21 Stronger Earnings Riding On Global Tin Price Rally

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MALAYSIA SMELTING CORP BHD (SGX:NPW)

Malaysia Smelting Corp - 3Q21 Stronger Earnings Riding On Global Tin Price Rally

• Higher profits are mainly due to record-high tin prices that continue to remain elevated as global demand outstrips supply. Malaysia Smelting Corp is on track for a more meaningful growth recovery entering 2022, supported by improved production output and better cost savings from the full utilisation of its new eco-friendly smelting plant.
• We expect tin prices to stay firm in the long run, albeit not at the current high, as structural supply issues may persist. Maintain BUY call on Malaysia Smelting Corp with a target price of RM3.33.

UMS Holdings - UOB Kay Hian 2021-11-17: 3Q21 Excellent Space Management Helped Negate Production Constraints

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UMS HOLDINGS LIMITED (SGX:558)

UMS Holdings - 3Q21 Excellent Space Management Helped Negate Production Constraints

• UMS’s 3Q21 results came in slightly ahead of expectations with earnings of S$15.1m (+17.0% y-o-y, +3.6% q-o-q). Revenue remained robust at S$67.6m (+49.7% y-o-y, +1.2% q-o-q), on the back of sustained strong growth in the global semiconductor industry, despite production constraints faced in Penang.
• Outlook remains bright with the acceleration in global chip demand, which UMS expects to take advantage of with its new production site in 3Q22. Maintain BUY.

Uni-Asia Group - UOB Kay Hian 2021-11-16: Incoming Record-Breaking 2021 & 2022; Too Inexpensive To Ignore

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UNI-ASIA GROUP LIMITED (SGX:CHJ)

Uni-Asia Group - Incoming Record-Breaking 2021 & 2022; Too Inexpensive To Ignore

• Uni-Asia Group provided a 9M21 update, which highlighted a potential record high in 2021. The incoming 4Q winter heating season in the northern hemisphere is expected to keep the dry bulk market busy; beyond that, we believe freight rates will stay elevated at least until end-22 given the favourable demand-supply imbalance.
• We are of the view that Uni-Asia Group’s valuation is too inexpensive to ignore. Maintain BUY with an unchanged target price pegged to 8x 2021F P/E (-1 standard deviation to the mean).

First Resources - UOB Kay Hian 2021-11-16: 3Q21 Results Below Expectations

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FIRST RESOURCES LIMITED (SGX:EB5)

First Resources - 3Q21 Results Below Expectations

• First Resources (SGX:EB5)’s 9M21 net profit came in below our and consensus estimates. We reckon that the negative variance was mainly due to the spillover impact from lower ASP contracted and the higher cost of production. Management also mentioned that the spiking fertiliser cost would dilute First Resources’s earnings moving forward.
• Maintain HOLD with higher target price factoring in higher CPO prices for 2022-23.

Food Empire - UOB Kay Hian 2021-11-15: 3Q21 Below Expectations Due To Costs; Price Increases Will Improve Earnings

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FOOD EMPIRE HOLDINGS LIMITED (SGX:F03)

Food Empire - 3Q21 Below Expectations Due To Costs; Price Increases Will Improve Earnings

• Food Empire's 3Q21 net profit of US$3m (-51% y-o-y / -22% q-o-q) was below expectation, 9M21 formed 57% of our full-year estimates. Margin is still under pressure due to high commodities prices and ocean freight rates.
• We believe earnings should improve via price increases and normalisation of costs. All markets except Southeast Asia recorded sales growth, with double-digit growth in the largest market, Russia. This continues to reflect the strong brand strength of Food Empire.

Frasers Logistics & Commercial Trust - UOB Kay Hian 2021-11-12: 2HFY21 Benefitting From Revaluation Gains & Lower Cost Of Borrowings

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FRASERS LOGISTICS & COMMERCIAL TRUST (SGX:BUOU)

Frasers Logistics & Commercial Trust - 2HFY21 Benefitting From Revaluation Gains & Lower Cost Of Borrowings

• Frasers Logistics & Commercial Trust (SGX:BUOU) benefitted from the acquisition of six European properties completed on 24 May 21 which provided more than four months of contributions. Cost of borrowings improved 0.3ppt y-o-y and 0.1ppt q-o-q to 1.6% due to lower base rates and lower interest rates for borrowings refinanced in 2HFY21. Valuation uplift was 9% or S$603.9m and NAV per unit increased 12.7% y-o-y to S$1.24.

StarHub - UOB Kay Hian 2021-11-11: 3Q21 In Line; ARPU Stabilises With Encouraging 5G Takeup

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STARHUB LTD (SGX:CC3)

StarHub - 3Q21 In Line; ARPU Stabilises With Encouraging 5G Takeup

• StarHub delivered 3Q21 core net profit of S$40m (+5% y-o-y; 7% q-o-q) driven by sequentially higher service revenue as well as enterprise and broadband revenue. The results were commendable as 9M21 earnings came in within expectations, accounting for 75% of our forecast.
• Separately, StarHub announced that it is acquiring a 60% stake in HKBN JOS for S$15m (or 7x EV/EBITDA) and it is to grow the regional ICT business.

Frencken Group - Maybank Kim Eng 2021-11-16: Time For A Breather

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FRENCKEN GROUP LIMITED (SGX:E28)

Frencken Group - Time For A Breather

Downgrade to HOLD as short-term risk reward turns neutral

• Frencken (SGX:E28)'s 3Q21 PATMI of S$14.8m (+10.7% y-o-y) was in line. 9M21 PATMI accounted for 74% of our/consensus’ FY21E.
• We cut Frencken's FY21-23E EPS forecast by 1-6% to factor
  1. slower 4Q21 business momentum than we previously expected; and
  2. higher cost environment.

UMS Holdings - Maybank Kim Eng 2021-11-15: Preparing For Growth

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UMS HOLDINGS LIMITED (SGX:558)

UMS Holdings - Preparing For Growth

3Q21 ahead of street despite production bottlenecks

• UMS (SGX:558)'s 3Q21 PATMI of S$15.1m (+17% y-o-y) was in line with our estimate and ahead of consensus’. 9M21 PATMI accounted for 71%/76% of our/ street’s FY21E. We maintain FY21E, but increase UMS's FY22-23E EPS forecast by 2-8% to factor in
  1. increased capex and still robust semicon equipment outlook, and
  2. a higher labour cost environment.
• 4Q21 should be sequentially stronger for UMS.

Ascendas REIT - Maybank Kim Eng 2021-11-16: Building For The Future

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ASCENDAS REAL ESTATE INV TRUST (SGX:A17U)

Ascendas REIT - Building For The Future

Joint redevelopment of 1 Science Park Drive

• Ascendas REIT announced plans to jointly redevelop its 38-year old, 1 Science Park Drive (1 SPD) property with sponsor group CapitaLand Development (CLD), into a new 116,800 sqm life science and innovation campus by 2025. In addition to a projected 6.3% stabilised NPI yield, a first right to acquire the remaining 66% interest, is set to entrench its dominance as Singapore’s leading business and science park REIT landlord, as well as the best S-REIT growth proxy.

Bumitama Agri - Maybank Kim Eng 2021-11-14: Record 3Q21 Headline PATMI

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BUMITAMA AGRI LTD. (SGX:P8Z)

Bumitama Agri - Record 3Q21 Headline PATMI

Bumitama Agri's results exceeded our/consensus expectations

• Bumitama Agri (SGX:P8Z)'s 9M21 headline/ core PATMI beat our/consensus expectations on better-than-expected CPO ASP and lower-than-expected cost.
• We expect 4Q21 EPS to be relatively good on elevated CPO ASPs.
• Bumitama Agri trades at just 6-7x PER with attractive dividend yields of ~6.0% (within its dividend payout policy of up to 40% of recurring profits).

PropNex - UOB Kay Hian 2021-11-11: 3Q21 As Expected, A Strong Set Of Results

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PROPNEX LIMITED (SGX:OYY)

PropNex - 3Q21 As Expected, A Strong Set Of Results

• PropNex’s 3Q21 net profit more than doubled y-o-y to S$15.5m while on a 9M21 basis, its net profit made up 77% of our full-year estimate. The Singapore property market remains robust and in the next 6-12 months, earnings surprise could come from successful enbloc projects.
• With over 10,000 agents and growing, PropNex’s revenue base appears very robust going forward. Maintain BUY. Target price upgraded to S$2.17 (previously $1.97).

Valuetronics - UOB Kay Hian 2021-11-11: 1HFY22 Below Expectations; Outlook Remains Challenging

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VALUETRONICS HOLDINGS LIMITED (SGX:BN2)

Valuetronics - 1HFY22 Below Expectations; Outlook Remains Challenging

• Valuetronics's 1HFY22 net profit of HK$57m (-38% y-o-y/-41% q-o-q) was below our expectations, forming 41% of our full-year estimate, due to weaker-than-expected gross margin. 1HFY22 revenue (-7% y-o-y) and gross margin (-2.8ppt) were impacted due to the components shortage and cost pressure in China because of the appreciating renminbi.
• Valuetronics expects forward outlook to remain challenging. We reduce our FY22 and FY23 EPS by 29%. Maintain HOLD with a 21% lower target price of S$0.52.

Mapletree Logistics Trust - OCBC Investment 2021-11-10: Stronger Appetite For Acquisitions

SGinvestors.io

MAPLETREE LOGISTICS TRUST (SGX:M44U)

Mapletree Logistics Trust - Stronger Appetite For Acquisitions

• Mapletree Logistics Trust's 2QFY22 DPU rose 5.7% y-o-y to 2.173 cents.
• Positive rental reversions of 2.4%.
• Raised guidance for FY22 acquisitions to ~S$1.6b.

DPU growth momentum continues

SingTel - OCBC Investment 2021-11-12: Full-Year Dividend Likely At Upper Half Of Guidance Payout Range

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SINGTEL (SGX:Z74)

SingTel - Full-Year Dividend Likely At Upper Half Of Guidance Payout Range

• Focused on attaining low-to-mid teens ROIC levels in mid-to-long term.
• Looking forward to recovery on reopening hopes.
• Fair Value of S$2.98.

Good momentum; turnaround in Airtel

Asian Pay Television Trust - Phillip Securities 2021-11-15: 2022 Dividends Maintained

SGinvestors.io

ASIAN PAY TELEVISION TRUST (SGX:S7OU)

Asian Pay Television Trust - 2022 Dividends Maintained

• Asian Pay TV Trust (SGX:S7OU)'s 3Q21 results met our expectations. 9M21 revenue and EBITDA at 74%/77% of our FY21e forecasts. The company guided that FY22 DPU will be maintained at 1 cent.
• 3Q21 free cash-flows of S$24mil supports the quarterly dividend payout of S$4.5mil and dividend yield of 7.4%.
• Our FY21e forecast and target price of S$0.15 for Asian Pay TV Trust is maintained. Valuations of 9x FY21e EV/EBITDA are a 20% discount to Taiwanese peers on account of its smaller scale and higher leverage.

Lendlease Global Commercial REIT 1QFY22 Update - Phillip Securities 2021-11-15: Positive Reversions And Impending Acquisition

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LENDLEASE GLOBAL COMMERCIAL REIT (SGX:JYEU)

Lendlease Global Commercial REIT 1QFY22 Update - Positive Reversions And Impending Acquisition

• No financials provided in Lendlease Global Commercial REIT (SGX:JYEU)'s 1Q22 operational update. High-single digit reversions were a positive surprise. High occupancy of 99.8% maintained. Slight 3.1% increase in tenant sales.
• Upgrade Lendlease Global Commercial REIT from NEUTRAL to ACCUMULATE with DDM target price (COE 7.7%) raised from S$0.87 to S$0.97. Estimates revised following a change of analyst. We raise our forecasted contributions for the 31.8% stake in JEM and Grange Road Carpark redevelopment project. FY22e/23e DPU increases by 8.6%/7.7%. Target price for Lendlease Global Commercial REIT climbs 11.5% due to the adjustment in earnings and a lower cost of equity assumption of 7.7% (previously 8.0%). Impending acquisition of the remaining stake in JEM is a catalyst for Lendlease Global Commercial REIT.

StarHub - Phillip Securities 2021-11-14: Stable With Roaming + Cybersecurity Optionality

SGinvestors.io

STARHUB LTD (SGX:CC3)

StarHub - Stable With Roaming + Cybersecurity Optionality

• StarHub (SGX:CC3)'s 3Q21 results met our expectations. 9M21 revenue and EBITDA were at 72% and 80% of our FY21e forecasts respectively.
• Broadband and entertainment revenue trending ahead of our estimates due to increase in ARPUs. Mobile remains weak, dragged down by large churn in prepaid subscribers.
• 3Q21 cybersecurity operating profits more than doubled from S$2.8mil to S$5.8mil.

CSE Global - UOB Kay Hian 2021-11-15: 3Q21 Results In Line; Improving Order Flows

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CSE GLOBAL LTD (SGX:544)

CSE Global - 3Q21 Results In Line; Improving Order Flows

• CSE Global (SGX:544)'s 3Q21 results were in line, with 9M21 EBITDA of S$34m (-19% y-o-y) meeting 80% of our full-year estimate. 3Q21 revenue was down 2% y-o-y and EBITDA fell 23% y-o-y, due to higher selling costs in preparation for the resumption of sales activities and higher unabsorbed labour costs.
• Order intake increased 32% y-o-y, due to the recovery in the energy sector. CSE Global expects fewer large greenfield and flow projects due to supply chain disruptions.