| MAYBANK KIM ENG | UOB KAYHIAN |
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Manulife US REIT (MUST SP) Bolstering Yield
Resilient portfolio, 7.9% yield MUST’s FY20 DPU fell 5.4% YoY largely due lower carpark revenue (at 7% of gross income and down 25% YoY) and provision for expected credit losses from its retail and F&B tenancies. Portfolio occupancy dipped to 93.4% due to non-renewals but remains at c.3-18% above market occupancies. We expect FY21-22 DPUs to be cushioned by its low lease expiries, its strong assets and quality tenancies. Valuations are undemanding at 7.9% FY21 yield (as management maintains a 100% payout) vs 5.0-6.0% for its S-REIT peers, backed by high DPU visibility with stable income growth and low leasing risks, and upside as it returns to acquisition mode. Maintain BUY to our USD1.10 DDM-based TP (COE: 7.0%, LTG: 2.0%). BUY.
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iFAST Corporation (IFAST SP) 4Q20: Benefitted From Strong AUA Growth; Downgrade To SELL On Valuation
The strong AUA growth for fintech firm iFAST going forward will be supported by the positive momentum in net inflows of client assets. AUA reached another record-high level of S$14.45b (+44.5% yoy) as at end-20, as funds administered grew across all core markets and the group benefitted from positive operating leverage. Hong Kong eMPF contract details have not been finalised at this stage. However, valuations are expensive. Downgrade to SELL. Target price is unchanged at S$5.12.
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UOB KAYHIAN |
UOB KAYHIAN |
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Food Empire Holdings (FEH SP) Expect Another Year Of Record Earnings; Raise Target Price By 37% To S$1.30
While the share price has increased 22% since we raised our target price on 18 Jan 21, we see room for upside as valuation remains attractive at 12x 2021F PE vs peers’ average of 25x. We expect another record year for core earnings, underpinned by an improvement in margins. In view of its resilient core earnings amid a challenging environment and leading position in core markets, we believe the stock deserves to trade at a higher valuation. Maintain BUY with a 37% higher target price of S$1.30.
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Parkway Life REIT (PREIT SP) Thriving And Winning Through Collaborations With Sponsor
We expect the extension of master leases for three hospitals in Singapore to come with an increase in rents of 12% for the first year of the new 15-year master leases, downside protection with annual rent revision at CPI + 1% and a new option to extend for another 15 years (23 Aug 37 to 22 Aug 52). The comprehensive package will foster future collaborations with its sponsor. Maintain BUY. Target price: S$4.38.
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Check out our compilation of Target Prices
