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UOB KAYHIAN |
CGS CIMB |
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Mapletree Industrial Trust (MINT SP) Steady Progress To Strengthen Data Centre Portfolio
MINT has secured a replacement tenant from the healthcare services sector for its data centre at Brentwood, Tennessee. The new lease has a long duration of 30 years and provides rental escalation of 2% per year. Occupancy for its US data centres should recover back to 90%. MINT intends to acquire more data centres in Asia Pacific and Europe. It provides an attractive FY25 distribution yield of 6.2% (DCREIT: 5.4% and KDCREIT: 5.1%). Maintain BUY. Target price: S$2.93.
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Q&M Dental Group Realigned for growth
■ According to online publication AiThority, EM2AI, QNM’s dental AI venture, is expected to launch its dental AI software in 2H24F. ■ Separately, QNM appears to be relooking expansion plans, according to an interview between management and The Business Times. ■ We think QNM’s share price could re-rate with this news flow given our expectations that core EPS will return to growth in FY24F. ■ Reiterate Add with an unchanged TP of S$0.37.
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UOB KAYHIAN |
UOB KAYHIAN |
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Gloves – Malaysia Blooming In Spring
The Malaysian glove sector is officially out of the woods with anticipation of sequential earnings growth coming into fruition throughout 2024. We have also observed a feasible trend of improving operating statistics from the past few quarters. With this and the US’ precipitous tariff hike on China’s medical-grade gloves beginning 2026, we re-affirm our optimism that potential valuation re-rating may continue to catalyse the sector’s positive share price trajectories. Maintain OVERWEIGHT.
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Automobile – China Weekly: EV Sales Pull Back Last Week After Two Weeks Of Consecutive Rebound
China’s PEV retail sales pulled back last week after two weeks of rebound. BYD’s sales resumed positive yoy growth last week due to a low base, but weekly sales still fell 23% mom/1% wow despite the launch of Qin L. Li Auto’s sales rebounded 30% wow last week on price cuts. The EU announced plans to impose 21-38% in provisional duties on Chinese EVs from 4 Jul 24, but the impact would be small. Maintain MARKET WEIGHT. Top BUYs: Geely, CATL, Tuopu and Joyson Electronics. Top SELLs: XPeng.
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| MAYBANK KIM ENG | CGS CIMB |
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Rates & Realty Issue 1 – Re-leveraging; feedback on retail, hotel
Singapore property periodical Welcome to the inaugural edition! We intend to summarize the price moves, share the investor feedback, tell-a-tale tidbits, on-the-ground checks and an occasional effort to match the narrative and numbers. Price movements: Over the past week, SREIT index was down 0.7%. SGD 10-year benchmark yield was up 1bp to 3.27%. USDSGD was relatively unchanged at 1.35. KIT, KDC and PLIFE were top performing while FLCT, MPACT and DCREIT were the worst-performing SREITs.
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The Joint Offerors have announced its intention to make a voluntary unconditional general offer of S$0.145 per share in cash for all the issued and paid-up ordinary shares it does not own in Ossia International Limited (S$0.150, up 3 cents). At S$0.150, Ossia International is capitalised at S$37.9mln and trades at 5.8x trailing P/E, 0.69x P/B with a dividend yield of 4.7%. Net cash of S$9.6mln represents 25% of current market cap. Share Price has surged 25% since the offer announcement and now trades at 15 cents, higher than the offer price of 14.5 cents. Given that the offer is unconditional in all respects and that the offerors will not exercise the right to reduce the Offer Price by the FY24 dividend of S$0.007, we think downside risk is capped at S$0.152 if the dividend gets approved at the upcoming AGM to be convened. At the offer price of 14.5 cents, the company is valued at 5.6x trailing P/E and 0.66x P/B, which in our view is not a compelling offer. In addition, the offer price is about 26% lower than the 52- week high of 19.5 cents. We are thus advising investors to “Hold on for a better offer”. |
