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UOB KAYHIAN |
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Singtel (ST SP) Risk-Reward More Favourable; U/G To BUY
Upgrade to BUY from Neutral, new SOP-based TP of SGD3.30 from SGD3.45, 20% upside with c.6% FY21F (Mar) yield. We see further share price upside for Singtel, even after the rebound from a decade low in March. At -1.5SD from the post-GFC EV/EBITDA mean (2SD below 5- year mean), valuations suggest downside risks are priced in. Near-term headwinds aside, the group’s favourable risk-reward profile, diversified earnings base, and dividend yields that trump the ASEAN-4 telco sector average, should still drive longer-term outperformance.
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Mapletree Commercial Trust (MCT SP) 4QFY20: VivoCity Feeling The Heat From COVID-19 Pandemic
We are surprised by the huge S$43.7m distribution retained, given that MCT has a balanced portfolio with the mix between office/business park and retail at 63:37 by valuation. VivoCity suffered a 3.4% drop in tenant sales in FY20. On a brighter note, the timely acquisition of MBC II has strengthened the office/business park portfolio, which provides diversification and resiliency. Maintain BUY. Target price: S$2.02.
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UOB KAYHIAN |
CGS CIMB |
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Koufu Group (KOUFU SP) Impact Of COVID-19 Partially Offset By Budget Relief Measures
2020’s outlook remains challenging due to the impact from COVID-19, especially for outlets in Macau and MBS. Koufu’s business model of charging stall tenants the higher of a fixed or variable monthly fee does however lower the risk of its food court and coffee shop operations running into losses, compared with full-service restaurants. While the budget relief measures are meaningful, we still expect a net negative impact from the outbreak. Maintain BUY with a lower target price of S$0.69.
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Suntec REIT Challenging times
■ 1Q20 DPU of 1.76 Scts below expectations at 18.2% of our FY20F forecast. ■ Sluggish retail operations, mitigated by a more stable office portfolio. ■ Reiterate Add with a lower TP of S$1.75.
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Check out our compilation of Target Prices
