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CGS CIMB |
UOB KAYHIAN |
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Keppel DC REIT New geography for inorganic growth
■ We estimate 0.2%/0.9% FY24F/25F DPU accretion from TDC1 acquisition. ■ Acquisition wipes out debt headroom to KDC’s internal gearing limit of 40%. ■ Reiterate Hold given lack of catalysts and Bluesea overhang.
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Keppel DC REIT (KDCREIT SP) Making Its Maiden Foray Into Japan
KDCREIT has made its maiden foray into Japan by acquiring a 98.47% effective interest in a freehold shell & core data centre at West Tokyo in Japan for ¥23.4b (S$201.0m). The acquisition is fully funded by JPY-denominated debt at a cost of below 2%. It is accretive to DPU by 1.1% and should be completed in 3Q24. KDCREIT provides 2025 distribution yield of 4.9% (DCREIT: 5.9%, MINT: 6.2%). Maintain HOLD. Target price: S$1.98.
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UOB KAYHIAN |
UOB KAYHIAN |
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Sembcorp Industries (SCI SP) Looking Through The Noise – Still An Attractive Renewables Play
Sentiment on ESG-related stocks and funds in the US has been negative and has weighed on SCI’s share price ytd. This has brought the company’s earnings multiples down to extremely attractive levels, with SCI now trading at the low end or at a discount to its regional and global peers. With its growth targets unchanged, the continued signing of long-term PPAs for its Singapore capacity and some exposure to data centres, SCI remains one of our top picks. Maintain BUY. Target price: S$7.49.
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Alpha IVF (ALPHA MK) Cultivating Regional Success Begins with Alhaya
Alhaya continues to gestate well after breaking even. Its operational success should be a precursor to Alpha IVF’s exciting expansion plans for FY25, which will nearly double its existing number of facilities. These will fuel an impressive three-year earnings CAGR of 19.0% (FY23-36F). We continue to like Alpha IVF for its industry-leading capabilities and track record. Maintain BUY and target price of RM0.40.
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| LIM & TAN | |
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We highlight the key points from Boustead Singapore’s ($1.04, down 1 cent) annual report that was just released last night: Geospatial Global and regional recovery was tempered by the continued conflicts in Ukraine and the Middle East, ever-present natural disasters and changing projections on central bank policies. Despite volatility during the period, the division’s client base remained resilient, demonstrating the value placed on GIS technology and digital transformation solutions and further demonstrating the dominant global market position of the Esri brand. Boustead Singapore’s market cap stands at S$497mln and currently trades at 8x forward PE and 1x P/B ratio, with a dividend yield of 5.2%. Consensus target price stands at S$1.40, representing 35% upside from current share price. This justifies an “Accumulate” rating for Boustead Singapore.
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