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PHILLIP SECURITIES |
PHILLIP SECURITIES |
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OUE REIT 50% discounted Investment Grade REIT
• We expect hotel RevPAR to increase by 11% YoY for Hilton and 22% for Crown Plaza in FY24e. Downside risk protected by the fixed component of the hotel master lease agreement which will support a 6% dividend yield. The Hilton rebranding has boosted RevPAR by 27%.
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Singapore REITs Monthly: May24 Lacklustre performance in May
▪ The S-REITs Index performance was lacklustre in May. It declined 0.4% after falling 3.1% in April. The top performer for the month, CapitaLand India Trust (CLINT SP, non-rated), gained 6%, while the worst performer, Frasers Hospitality Trust (FHT SP, non-rated), fell 6.5%. The overseas commercial sub-sector was the top performer in May, gaining 1.8%, while the worst performing sub-sector was overseas diversified, which was down 2.1%.
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CGS CIMB |
CGS CIMB |
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Paragon REIT Locking in gains, but redeployment unlikely
■ We estimate the divestment of Rail Mall to be 0.8%/1.2% FY24F/25F DPU dilutive but 0.5% NAVPS accretive and to improve FY24F gearing by 1.5bp. ■ Divestment gain translates into c.6 years of distribution top-ups. ■ Reiterate Hold on lack of near-term catalysts.
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ASEAN Strategy The road ahead for data centres in ASEAN
■ We see Malaysia and Indonesia emerging as prime beneficiaries in ASEAN of strong global demand growth for new data centres amid AI proliferation. ■ Our report discusses implications for relevant sectors in the region, such as telecom, real estate, power producers, tech manufacturing and construction. ■ We prefer players involved in the value chain of data centre construction over operators as they also benefit from the surge in investment by hyperscalers.
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| MAYBANK KIM ENG | MAYBANK KIM ENG |
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Mynews Holdings (MNHB MK) Onwards and upwards
Maintain BUY with a higher TP of MYR0.75 2QFY24 results outperformed on lower-than-expected operating expenses. Consumer sentiment remains lacklustre but we see enhanced internal operating conditions within Mynews and CU stores through refreshed product offerings and effective cost management. Our FY24E-FY26E earnings estimates are lifted by 31%-80%. With expectation for a sustainable earnings growth trajectory, we switch to an earnings-based valuation methodology to derive a higher TP of MYR0.75, based on normalised mean PER of 32x on CY25E EPS (vs. 1.7x FY24E PBV previously).
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IJM Corporation (IJM MK) More to come
Tweaking earnings, raising TP, maintain BUY We hosted IJM at our Invest ASEAN 2024 Corporate Day on 12 Jun. Key takeaways are that IJM remains positive on its MYR5b construction job win target for FY25E, and monetisation of its M’sian toll highways is still on the cards. Separately, IJM announced sizeable job wins of c.MYR1b last Friday, lifting its outstanding order book to MYR7b. We adjust FY25-27E earnings by +1% p.a., and raise our RNAV-TP to MYR3.30 (+50sen). We remain upbeat on IJM’s construction job win prospects while rising FDI/ DDIs will benefit its industry and port ops too. BUY.
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