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CGS CIMB |
CGS CIMB |
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Banks An expected pull-back in yoy loan growth
■ Loan growth moderated from 6.4% yoy at end-Jul 24 to 6% yoy at end-Aug 24, with the slowdown mainly coming from the business loan segment. ■ Given the RM600.1m decline in banks’ total provision from end-Jun 24 to end-Aug 24, we expect their 3Q24F LLP to be manageable at RM1bn-1.1bn. ■ We reiterate our Overweight rating on banks as we expect an improved outlook for net interest margin and an increase in dividend payout ratios.
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CapitaLand Ascott Trust Increasing footprint in its home market
■ Acquisition of lyf Funan raises CLAS’s Singapore exposure to 19% (1H24: 16%) and is FY23 pro forma DPU-accretive at 1.5% (pre-CMSS divestment). ■ Master lease structure provides upside whilst protecting downside. ■ Reiterate Add on CLAS’s diversified portfolio and reconstitution opportunities
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UOB KAYHIAN |
MAYBANK KIM ENG |
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REITs – Singapore S-REITs Monthly Update (Sep 24)
The Fed is expected to proceed with further rate cuts in a gradual and measured pace after the initial 50bp cut on 18 Sep 24. Based on the latest dot plot, the Fed Funds Rate is expected to be lowered by another 50bp to 4.25% by end-24 during the next two FOMC meetings on 7 November and 18 December (potentially 25bp cut each meeting). Maintain OVERWEIGHT. BUY CLAS (Target: S$1.38), CDREIT (Target: S$1.48), FLT (Target: S$1.48), MINT (Target: S$3.03) and MPACT (Target: S$1.76).
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Eco World Development (ECW MK) Reaping the fruits of its industrial park
Kulai site visit note We visited ECW’s Quantum Edge business park (QEBP) in Kulai last week. With secured land deals to Microsoft and Princeton Digital Group (PDG), QEBP is expected to start contributing to earnings from FY25E onwards. Management is actively negotiating with data center (DC) operators and could secure 1-2 DC-related land sale by the end of 2024/2025. We raise FY25-26E earnings forecasts by +1% to +2%. Our TP is unchanged at MYR1.96 (on an unchanged 1.1x FY25E P/B). Maintain BUY.
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| UOB KAYHIAN | |
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STRATEGY – MALAYSIA Alpha Picks: A Variety Of Event Drivers
Our Alpha Picks outperformed the FBMKLCI in Sep 24 (+3.7% vs -1.8%) as hoped, partly reversing Aug 24’s stark underperformance; nevertheless, our Alpha Picks have still neatly outperformed the FBMKLCI ytd. Our Oct 24 Alpha Picks embrace a variety of event-driven picks. Oct 24 picks: EcoWorld, Gamuda, Lagenda, MYEG, Pekat, Public Bank, RGB, Sime Darby, VSI and Yinson.
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