ANALYSTS SAY: Buy, Sell, Hold (21 Oct)

UOB KAYHIAN

Parkway Life REIT (PREIT SP)
Hospital Operations Normalising With Return Of Foreign Patients

PREIT’s Singapore hospitals have been benefitting from the return of foreign patients, which accounted for 25% of revenue during pre-pandemic days, since since Singapore’s borders were reopened in Apr 22. It continues to expand in Japan and completed the acquisition of five nursing homes in Hokkaido and Greater Tokyo in Sep 22. PREIT trades at a premium due to its resiliency and the scarcity of its healthcare properties. Maintain HOLD as 2023 DPU yield is fair at 3.7%. Target price: S$4.13.

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DiGi.com (DIGI MK)
3Q22: Results In Line; Positive Merger Synergies In 2023

Digi’s 3Q22 core net profit rose 14% qoq to RM242m on the back of strong postpaid net adds, good cost discipline and lower effective tax rate. Net profit declined yoy on prepaid weakness and tax from Cukai Makmur. This brought 9M22 core net profit to RM703m (-17% yoy), in line with expectations. The Digi-Celcom merger is expected to be completed in 2H22. Maintain BUY on weakness. Target price: RM3.85.

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CGS CIMB

Aztech Global Ltd
2H22F: seasonality effect could be weaker

■ We think Aztech could report 3Q22F net profit of S$21.05m (+16.9% yoy/- 27.3% qoq) after the market close on 3 Nov 2022.
■ In our view, Aztech may not have experienced net order cancellations but 3Q22F performance could hinge on cost management.
■ Reiterate Add. Lower TP to S$0.96 on lower target P/E multiple (given uncertain demand outlook) and 7.5% cut to our FY23F EPS forecast.

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Thai Beverage
Positive read-through from SABECO

■ SABECO’s 3Q22 topline doubled while PATMI tripled yoy from a low base last year. 9M22 PATMI was above expectations at 84% of consensus’ FY22F.
■ We view this as a positive read-through to THBEV. Reiterate Add with TP of S$0.88 on post-Covid earnings recovery and attractive valuation.

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DiGi.com (DIGI MK)
Coping with prepaid pressure

Sequential net profit recovery
3Q22 results were in line with our/consensus expectations as net profit recovered sequentially on lower taxes. Of slight concern is the ARPU step-down from the expiry of the “Jaringan Prihatin” subsidy program, which management is aiming to counter with its maiden prepaid unlimited plan. Maintain HOLD with an unchanged DCF-TP of MYR3.50. We prefer TM (T MK, BUY, CP: MYR5.40, TP: MYR7.50) in the telco space.

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Yinson Holdings (YNS MK)
Interim charter extension for FPSO Adoon

BUY. Introducing expanded ESG tear sheet
The interim charter on FPSO Adoon is expected, in anticipation of a final decision soon. The FPSO market is booming and Yinson is in an entrenched position to ride this upcycle. Winning 1-2 new jobs in 18M is a realistic possibility and we have yet to incorporate this upside potential to our SOPbased TP. We have also introduced an expanded ESG tear sheet for Yinson, assigning it an above average overall score of 78, based on its aggregated quantitative/ qualitative/ target-based metrics. 

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