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RHB BANK |
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UnUsUaL (UNU SP) Inflection Point In 2QFY20F; Keep BUY
BUY this small-mid cap Top Pick, unchanged SGD0.42 TP implies 58% upside. Unusual should achieve high PATMI growth of 20-30% YoY in 2QFY20 (Mar). This is despite a weak 1QFY20, which stemmed from a dearth of concerts, as the majority of its events are concentrated in 2QFY20 and 3QFY20. As it organised a string of concerts in 2QFY20, and there is a strong pipeline of events in 3QFY20, we believe it is set to record healthy numbers in FY20.
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Sheng Siong (SSG SP) Value Supermarket, Still a Bargain
Reiterate BUY on our Top Pick, Sheng Siong, with a TP of SGD1.32, 16% upside and c.4% yield. Sheng Siong recorded a strong 3Q19 PATMI of SGD20.6m, up 15% YoY and above consensus’ expectation. The group also secured three new stores in the previous HDB tender, two of which were opened during October and one to be opened in 1Q20. We estimate a good performance in FY20F as the five stores which opened in 2019 would continue to fuel earnings growth next year.
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RHB |
CGS CIMB |
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CDL Hospitality Trusts (CDREIT SP) Strong SG Offset by Weakness Overseas
BUY, new SGD1.78 TP from SGD1.79, 9% upside with 6% FY20F yield. CDL Hospitality Trusts remains our preferred hospitality pick. 3Q19/9M19 results were slightly below our estimates, due to the weaker performance of its overseas properties. On the positive side, its Singapore hotels registered the strongest RevPAR growth in 3Q19 since 2012, and this trend is expected to continue. Valuations are reasonably attractive, at 1.1x P/BV. This stock is still one of the most liquid proxies to Singapore’s hospitality sector.
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REIT Hospitality: A good 3Q
■ CDLHT, FEHT and ART’s 9MFY19 DPU came in within expectations. ■ Singapore hotels did well in 3Q but overseas markets were weaker. ■ Expect stronger RevPAR in 2020F due to a higher number of events. Maintain Overweight on the overall REIT sector.
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