| CGS CIMB |
CGS CIMB |
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Sime Darby Bhd Malaysian market to play a bigger role
■ Upgrade to Add with a TP of RM3.06 (from RM2.18), based on 12.8x CY25F P/E (its historical mean), which provides a 17.8% upside. ■ We see UMW acquisition as positive, allowing SIME to solidify its leading position in Malaysia’s auto market and reduce reliance on foreign markets. ■ Declining export demand for Australian mining commodities would impact SIME’s industrial segment in FY24-25F, in our view.
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Bank of China Delivering stable profit and dividends again
■ FY23 net profit growth of 1.7% was roughly in line; this is the sixth time in seven years it has delivered low-single-digit net profit growth. ■ FY23 dividend payout ratio was 32%. Its payout ratio had stayed within the 30-31% range since 2015, and we see this as sustainable over FY24F-26F. ■ We, thus, believe its relatively high dividend yield can continue to support its share price performance, especially amid a falling rate environment. ■ Reiterate Add; TP raised to HK$4.30 due to lower policy risk discounts.
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PHILLIP SECURITIES |
PHILLIP SECURITIES |
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Cromwell European REIT Asset rejuvenation strategy to drive organic growth
Resilient portfolio in terms of portfolio occupancy (FY23: 94.3%) and rent reversions (FY23: +5.7%). Occupancy is expected to remain stable this year, with only 13.5% of portfolio leases due for renewal. CERT’s long-term 60:40 target asset class split between light industrial / logistics and welllocated Grade A offices stands to benefit from the growth in e-commerce and the nearshoring trend, as well as flight to quality
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Phillip 2Q24 Singapore Strategy Drifting sideways
Review: Singapore's equity market rose a modest 0.5% in 1Q24. Most sectors were down during the quarter except banks (Figure 1) and telecommunications. With their attractive yields and expectations of rate cuts extended, banks recovered strongly, especially in March. The consumer sector was a drag with high cost of living and weak economic growth (Figure 3). REITs suffered as expectations in the number of interest rate cuts by the Federal Reserve were lowered and delayed (Figure 4).
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| LIM & TAN | |
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ComfortDelGro ($1.4, unchanged) today announced that its whollyowned subsidiary, Metroline Limited, has been awarded contracts to operate four public bus franchises by the Greater Manchester Combined Authority
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