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UOB Kayhian |
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Keppel Pacific Oak US REIT (KORE SP) Navigating Rough Seas; Keep BUY
Keep BUY with a new USD0.76 TP from USD0.88), 43% upside and c.11% yield. COVID-19’s impact on Keppel Pacific Oak US REIT’s office portfolio is mitigated by a diversified asset/tenant base and reasonably long portfolio weighted average lease to expiry (>4 years). While overall office demand is expected to take a near-term hit, we expect demand in tech markets – to which KORE has most exposure – to hold up relatively well. The recent finalisation of tax regulations should provide some savings. Valuations are relatively cheap at 0.6x P/BV.
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Yangzijiang Shipbuilding (Holdings) (YZJSGD SP) Staying The Course
Production at YZJ’s shipyards have resumed with nearly 90% of its workforce having returned post COVID-19 containment measures. Thus, the company should meet its 2020 profit and production targets. The key risk is whether shipowners can take delivery of their newbuild vessels from YZJ, given travel restrictions. We also highlight a potential new bulk-carrier order. Maintain BUY. Target price: S$1.25.
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CGS CIMB |
DBS VICKERS |
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Constrn & Material - Overall Feeling the Covid-19 pinch
■ Construction progress could be further impacted by one-month circuit breaker measure and rising infections at foreign worker dormitories, in our view. ■ Firms could potentially make up for the slack in late-2020, but project delays likely to further tighten cash flow and lead to elevated credit risk in the sector. ■ Reiterate sector Neutral. We reiterate Add on BRC Asia and Boustead Projects, but downgrade Yongnam Holdings from Hold to Reduce.
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CapitaLand Retail China Trust China retail returning to normalcy
Maintain BUY; TP revised to S$1.55. Overhanging risks pertaining to the COVID-19 pandemic appears to be alleviating within China, as new case counts look to be under control, with life in China slowly returning to normalcy. We understand that all of CapitaLand Retail China Trust’s (CRCT) 13 retail malls in China had since reopened, including Minzhongleyuan, which is situated in Wuhan City. Our new estimates account for a c.1 month worth of revenue shaved off on a portfolio basis, during the mall closures. CRCT is currently trading at a FY20F dividend yield of 6.7% and our new target price of S$1.55 implies a comfortable target P/BV of 1.0x.
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Check out our compilation of Target Prices
