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Yangzijiang Shipbuilding (Holdings) (YZJSGD SP)
After The Containership Boom, LNG Carriers May Be The New Hope
We highlight that YZJ could announce over US$2.4b worth of shipbuilding orders in the near term. In addition, we believe that it is in the running for a large LNG carrier order after it obtained a licence for membrane technologies. While construction of LNG carriers may lead to a mild erosion of gross margin in the medium term, the structural tailwinds, market size and potential growth are difficult to ignore, in our view. Maintain BUY. Upgrade target price to S$1.44.
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CapitaLand Ascendas REIT (CAREIT SP)
Front runner in the ESG race
Highest ESG 2.0 score among industrial REITs
Under our expanded ESG 2.0 scoring, CAREIT attains an above-average score of 67 - the highest among industrial S-REITs. CAREIT has set ambitious targets validated by the Science Based Targets initiative, and well executed on its green financing and green certification goals. Disclosure on Scope 3 emissions and further improvements in board diversity could drive a higher score in our view. New-economy assets of SGD13.4b (81% of AUM) are set to underpin CAREIT’s continued growth trajectory. Maintain BUY and DDM-based TP of SGD3.50 (COE: 6.2%, LTG: 2.0%).
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Mapletree Logistics Trust (MLT SP)
Riding the renewables wave
Logistics play with an ESG touch
MLT scores 58 under our expanded ESG 2.0 methodology, above the average of 50. MLT has executed well on solar energy adoption, green
financing and waste recycling. It’s working towards a more comprehensive framework to achieve carbon neutrality by 2030. Nonetheless, disclosures on interim targets could improve its score further. Maintain BUY and DDMbased TP of SGD2.15 (COE: 6.1%, LTG: 2.0%). Maintain BUY.
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Mapletree Industrial Trust (MINT SP)
Remains focused on ESG
Improving fundamentals, maintain BUY
Under our extended ESG 2.0 methodology, MINT receives an above-average score of 54 vs the 50 average. MINT’s sustainability framework is progressive, with targets validated by Net Zero (RCP 2.6) and Business-asusual (RCP 8.5) scenario analysis. We believe improvements in GHG emissions, further disclosure on renewable energy and green financing could help drive a higher score. Maintain BUY and DDM-based TP of SGD3.00 (COE: 6.6%, LTG: 2.0%). Maintain BUY.
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Singapore Exchange Ltd (SGX SP)
Riding the volatility wave
Derivatives supportive. ESG disclosures can improve
SGX’s derivatives platform continues to see support as investors look to mitigate and hedge risks in the current global environment. Its multi-asset strategy is a strong competitive advantage. This should continue to improve regional relevance. The Group’s sustainability disclosures are good based on MIBG’s ESG2.0 scoring. However, there is significant headroom for improvement. Increased transparency could drive larger ESG weightings for SGX going forward, in our view. Adjustments to market run rates and peer valuations sees us lowering TP to SGD10.65. Maintain BUY.
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ESR-LOGOS REIT (EREIT SP)
Steady progress
New-economy play with low ESG risk
ELOG scores 53 under our expanded ESG 2.0 methodology, which is above the average of 50. ELOG has a progressive sustainability framework. We believe improvements in information disclosure and more ambitious longterm targets could help ELOG obtain a higher score. Maintain BUY and TP of SGD0.55 (COE: 6.5%, LTG: 2%).
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