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UOB KAYHIAN |
UOB KAYHIAN |
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Frasers Logistics & Commercial Trust (FLT SP) 3QFY24: Strong Positive Rental Reversion From Australia
FLT achieved positive rental reversion of 54.6% and 51.7% respectively for logistics properties in New South Wales and Victoria in 3QFY24. It maintained occupancy of 100% for its logistics properties across Europe and the UK and 99% for Australia. FLT’s ability to grow via acquisitions is supported by a sizeable sponsor pipeline, low aggregate leverage of 33.2% and large debt headroom of S$793m. FLT provides a distribution yield of 6.9% for FY24 (MLT: 6.5%). Maintain BUY. Target price: S$1.40.
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NetLink NBN Trust (NETLINK SP) 1QFY25: Soft Results In Line; Strong Connections Growth
For 1QFY25, Netlink posted lower revenue (-2.9% yoy), EBITDA (-2.4% yoy) and PATMI (-9.1% yoy), still in line with our expectations. Despite strong overall connections growth, the softer yoy results were largely due to lower RAB and ancillary project revenue. In view of its stable revenue streams and operating cashflows, we continue to like Netlink as a high-yielding, safe-haven stock. Maintain BUY with the same target price of S$0.98.
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UOB KAYHIAN |
CGS CIMB |
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Wilmar International (WIL SP) 2Q24 Results Preview: Flattish Quarter Ahead Amid Margin Dip
Wilmar is scheduled to release its 1H24 results on 13 Aug 24. We are expecting 2Q24 core net profit of US$260m-265m (2Q23: US$175m, 1Q24: US$328m). For 2Q24, we expect a yoy improvement from the plantation and sugar mill division. We expect the food products division to see flattish yoy growth, while palm processing continues to see weakness. As China’s contamination scandal raises food safety concerns, we cut 2024 earnings by 10%. Maintain HOLD with a lower target price of S$3.25 (from S$3.35).
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Hongkong Land Holdings Ltd DP margin, provisions to drag FY24F profit
■ HKL kept interim DPS unchanged at US$0.06 even though it posted a net underlying loss in 1H24 (due to provisions on China DP projects). ■ It expects mid- to high-teens IRR for “Tomorrow’s CENTRAL” transformation plan that begins in 3Q24F. ■ Reiterate Hold with a lower TP of US$3.21 (70% discount to NAV). We think its exposure to HK office and China DP is a challenge to its re-rating.
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| MAYBANK KIM ENG | MAYBANK KIM ENG |
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Beng Kuang Marine (BKM SP) 2H likely to be stronger
Maintain BUY with a lower TP of SGD0.29 BKM’s 1H24 revenue increased 88% YoY to SGD59.9m. PATMI also surged, to SGD8.38m from a loss a year ago. The profit includes a one-off gain of SGD5.53m from the second partial land sale in 1H24. Core earnings of SGD3m came in below our expectation due to much higher than expected admin expenses, which surged 72% YoY to SGD11m. We cut our FY24/25E PATMI forecasts by 18% and 9%, also assuming full conversion of the 3 warrants for 10 existing shares. Our TP is lowered to SGD0.29 from SGD0.47, based on an unchanged 9x FY24E P/E. Maintain BUY as we remain bullish on the FPSO upcycle as well as a stronger 2H24E, coupled with a further potential Batam land sale..
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Netlink NBN Trust (NETLINK SP) Foundation of stability
1Q25 review: Stable on the surface 1Q25 earnings fell by 9% YoY, whereas revenue and EBITDA declined by 3%/2% YoY. Revenue decline was mainly owing to lower low-margin and often bumpy ancillary projects revenue whereas its key regulated asset base (RAB) revenue was stable despite the lower regulatory pricing kicking in from Apr’24. EBITDA decline was mainly due to the absence of one-off gain of SGD1.1m, which lifted 1Q24 EBITDA. We estimate adjusted EBITDA fell by just 1% YoY. Maintain BUY on Netlink Trust.
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