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CGS CIMB |
CGS CIMB |
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Yangzijiang Shipbuilding Raising yard capacity by c.10%
■ We estimate YZJSB’s potential new yard investment to increase capacity by c.10%, boosting deliveries by 5-6 vessels p.a. or orders of US$850m-1bn p.a. ■ The new 210-acre yard, which is subject to Chinese government approval, will cost about Rmb3bn and take two years to complete. ■ We expect positive share price movements on this news. Reiterate Add call and TP of S$2.50. Stronger-than-expected orders are key catalysts.
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ComfortDelGro LTA to consolidate management of bus ads
■ Singapore’s LTA intends to consolidate management of bus ads under one operator, in a bid to eke out more revenue for the public transport system. ■ We see limited near-term impact as: 1) implementation is likely to be phased over five years, and 2) bus operators are likely to adjust tender strategy. ■ Reiterate Add and TP of S$1.70 as we continue to like CD for its FY24F/25F earnings growth riding on UK tailwinds.
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UOB KAYHIAN |
UOB KAYHIAN |
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CapitaLand Integrated Commercial Trust (CICT SP) Quality Portfolio That Commands Well-deserved Premium
CICT continues to enhance its retail malls with the latest initiative being the repositioning of IMM Building into an outlet mall scheduled for completion in 3Q25. Management expects its Grade A office buildings to sustain high single-digit rental reversion. The divestment of 21 Collyer Quay is more advantageous as it is DPU accretive and better positions CICT for the next major acquisition. CICT provides a resilient 2025 distribution yield of 5.1%. Maintain BUY. Target price: S$2.29.
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Singapore Technologies Engineering (STE SP) Stay Invested For Steady Growth Outlook
Despite STE’s recent share price strength, we recommend investors stay invested for its steady growth outlook, driven by expected stable/upbeat performances across its three business segments. We forecast STE’s core net profit growth at 10.8% CAGR in 2024-26. In light of the record-high orderbook that offers good visibility, we roll over our valuation to end-25. Maintain BUY with a higher target price of S$4.95.
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| CGS CIMB | UOB KAYHIAN |
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Property Devt & Invt Slow start in 1H24
■ Sales of private homes (ex-ECs) were stable mom but slumped 18% yoy to 228 units in Jun 2024. ■ We lower our 2024F volume transactions to 5,000-6,000 and keep our price growth projection at 0-3%. ■ Retain Neutral sector stance. Our preferred picks, ranked by preference, are CLI, followed by CIT and UOL
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Strategy − China And Hong Kong Property Sharper Property Price Decline In 1H24 Weighing On Margins Of Chinese Developers; Upcoming Interest Rate Cut To Support Value Of Hong Kong Retail Landlords
For the mainland market, despite the marginal recovery of key indicators in June, the accelerated decline in property prices in 1H24 is weighing on developers’ margins. Top pick is CR Land for its defensiveness of margins thanks to strong recurring income. For Hong Kong, the daily average number of mainland tourists to Hong Kong and Hong Kong residents going northwards rose 22% and fell 7.8% mom in July. The upcoming rate cut will support the valuations of Hong Kong retail landlords. Top pick: LINK REIT.
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