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CGS CIMB |
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Singapore Post Ltd When travelling hits a snag…
■ Covid-19 outbreak is likely to cause ripple effects across SPOST’s postal and logistics segments; we lower our FY3/21-22F EPS by 11.7-14.0%. ■ We also assume provision of 2 months’ rental relief for its property tenants as they suffer from lower shopper traffic and retail spending. ■ Still an Add in view of its Covid-19 recovery, c.5% yield and net cash position. Current price level offers an attractive risk-reward.
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ST Engineering Deferring growth
■ Risk of order cancellations in STE’s order book (S$15.3bn) is low, but high likelihood of deferral especially aircraft maintenance as airlines are grounded. ■ We now expect STE’s earnings to decline by 3% yoy in FY20F (previously growth of 12%) as we reflect -30% yoy in aerospace revenue. Reiterate Add. ■ Our TP is cut to S$3.86, still on blended valuations. YTD share price (-15%) could have priced in concerns of growth pressure. Wait for weakness to buy.
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RHB |
UOB KAYHIAN |
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CDL Hospitality Trusts (CDREIT SP)
Keep NEUTRAL, with new TP of SGD1.03 from SGD1.62, 7% upside and c.5% FY20F yield. CDL Hospitality Trusts’ global hotel portfolio, like other industry players, has been hit hard by the COVID-19 pandemic. The impact on FY20 earnings is partly mitigated by fixed rent floor lease structures for some of its hotels. While its valuation has come down to a reasonable 0.6x P/B, the lack of visibility on when global travel can resume is likely to keep investors on the side-lines.
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Tianjin ZhongXin Pharmaceutical Group Corp (TIAN SP) 2019: Strong Finish To The Year
TIAN’s 2019 revenue (+10.0% yoy) and net profit (+11.9% yoy) are in line with our expectations, forming 100.3% and 99.1% of our forecasts respectively. This was supported by strong revenue growth from major products. Maintain BUY with a lower PE-based target price of US$1.35, based on peers’ average of 10.5x 2020F PE, and implies 89.3% upside from current price levels.
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Check out our compilation of Target Prices
