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CGS CIMB |
UOB KAYHIAN |
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Lendlease Global Commercial REIT Sale of Jem office may lower gearing to 35%
■ Our scenario analysis shows that the divestment of Jem office could result in -2.8%/+8.8% FY25F/26F DPU impact; adjusted ICR to remain close to 1.5x. ■ However, post-divestment gearing should fall to c.35%, restoring LREIT’s inorganic growth potential at a time when interest rates are projected to fall. ■ Reiterate Add. We think downside risks have been priced into LREIT’s FY25F DPU yield of 6.6% and it has multiple avenues to improve its balance sheet.
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Delfi (DELFI SP) 2Q24: Results Fall Short; Hurdles Remain
Delfi’s 1H24 revenue and PATMI of US$260m (-8% yoy) and US$20m (-22% yoy) respectively missed our expectations, both forming 45% of our full-year estimates. The poorer results came on currency depreciation, weaker demand for its own brands and termination of an agency brand in Indonesia. Despite this, interim dividend was maintained at 2.06 US cents/share. As headwinds such as high cocoa prices remain, we maintain HOLD with a lower target price of S$0.83 (S$1.07 previously).
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LIM & TAN |
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Neratel ($0.078, down 0.2 cent) reported that Ennoconn CorporaƟ on has entered into a share purchase agreement with Asia Systems Ltd. in relaƟ on to the sale and purchase of an aggregate of 193,173,439 issued and paid-up ordinary shares in the capital of Nera TelecommunicaƟ ons Ltd (the “Company”) held by Asia Systems Ltd., represenƟ ng approximately 53.38% of the total number of the issued and paid-up ordinary shares in the capital of the Company (the “Shares”), at a price of S$0.075 per Share (the “AcquisiƟ on”). On compleƟ on of the AcquisiƟ on, it is intended that the Shares acquired pursuant to the AcquisiƟ on shall be held by Ennoconn SoluƟ ons Singapore Pte. Ltd. (“ESS”), a whollyowned subsidiary of the Off eror. Neratel’s market cap stands at S$29mln, is loss making and currently trades at 0.6x PB, with a dividend yield of 6.4%. There are currently no analysts covering Neratel. Despite being loss making, Neratel has net cash of S$8.6mln, represenƟ ng 30% of market cap and given that off er valuaƟ on represents 0.6x PB and off er price of 7.5 cents is below current market price of 7.8 cents, we recommend that shareholders should EITHER “Sell In The Open Market or Hold On For the Longer Term” to ride the potenƟ al upside with Ennoconn Corp.
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