Raffles Medical Group
A transition year post-Covid-19

■ FY21 core net profit fell short at 91% of our estimate due to S$11m in government grants but was in line with consensus at 96%.
■ FY21 revenue was within expectations at 101%/104% of our/consensus estimates as momentum from Covid-19-related services continued in 2H21.
■ Lacking short-term catalysts but weakness priced in. Lowered FY22-23F EPS by 21-23% and reiterate Hold with lower SOP-based TP of S$1.33.

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Wilmar International
A record-breaking net profit for FY21

■ Wilmar’s final FY21 core net profit beat expectations, thanks to higher CPO prices and refining margins. However, final dividend was broadly in line.
■ We project FY22F core net profit to fall 3% due to weaker crush margins.
■ Reiterate Add, but with a lower TP of S$5.69. We like Willmar due to its attractive valuations and plans to unlock its value for shareholders.

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MAYBANK KIM ENG

PHILLIP SECURITIES

Aztech Global (AZTECH SP)
Slight chip shortage improvement

2H21 beat; TP trimmed 10% to factor in earnings risks Aztech’s 2H21 PATMI of SGD45m (+5.3% YoY, +52.9% QoQ) beat our
expectation and met the street’s. Order book for FY22 delivery rose from SGD426m (Oct-21) to SGD762m (latest). We cut FY22E PATMI by 10.6% as we match our revenue to current order book. Key risk is if Aztech is unable
to fulfil current order book amid component shortages. We cut our TP by 10% to SGD1.13 (unchanged 10x FY22E P/E) to factor in this earnings risk.
We maintain BUY as most negatives appear priced in. Final DPS of SGD0.05 implies 5.4% 2H21 yield.

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Lendlease Global Commercial REIT – Delivering a JEM as promised

• Proposed acquisition of the remaining 68.15% stake in JEM is marginally accretive at 0.1% and will double LREIT’s AUM and market capitalisation, increasing its visibility and investor relevance.
• Strong tenant demand from JEM’s dominant positioning in the Jurong East catchment and stable income from the office component will help to anchor LREIT’s portfolio, forming 58% of FY23e NPI.
• Maintain ACCUMULATE and DDM TP of S$0.94. We tweak our forecast to incorporate the acquisition of the remaining 68.15% stake in JEM. FY22e/23e DPUs have been increased by 1.7%/0.3% while FY24-26e DPUs were lowered by 0.4-1.1% due to the enlarged share base. The current share price implies FY22e DPU yields of 6.0%.

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