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CGS CIMB |
CGS CIMB |
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Telco - Overall Highlights from enterprise events today
■ Singtel launched its on-demand AI cloud service today, targeting domestic enterprises and the public sector initially, before expanding to ASEAN. ■ StarHub showcased its Managed Service offerings, which it believes will benefit from the tailwinds from digital spending and smart city development.
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CapitaLand Malaysia Trust Notable presence in the east coast region
■ We visited the East Coast Mall and left with a positive impression of its robust operational performance. ■ We estimate stronger net profit qoq in 3QFY24F, backed by resilient occupancy rates, higher base rent and lower utilities expenses. ■ Reiterate Add on CLMT with an unchanged DDM-derived TP of RM0.80, backed by FY25F dividend yield of 6.8%.
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PHILLIP SECURITIES |
UOB KAYHIAN |
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Singapore Banking Monthly
▪ September’s 3M-SORA was down 7bps MoM to 3.53%, the lowest since March 2023, and 6bps lower than the 3Q24 average. We expect the 3M-SORA to decline in tandem with the Fed Rate cuts. 3M-HIBOR was down 24bps MoM in September to 4.07%, a continuation from the decline of 38bps in August. ▪ Singapore loans growth grew 1.8% YoY in August, a continuation of the 1.9% increase from the previous month. We expect low-single-digit growth for 2024. The CASA balance rose slightly to 18.3% (Jul 24: 18.2%).
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CapitaLand Integrated Commercial Trust (CICT SP) Increasing Dominance Of Singapore’s Retail Scene
The acquisition of ION Orchard allows CICT to consolidate its presence downtown across the Orchard, Dhoby Ghaut and City Hall MRT stations, which are interchange stations that naturally attract huge footfall. Upon completion of the acquisition in 4Q24, CICT could work on enhancing the upper floors and obtaining tax transparency. Management is keen to expand in integrated developments, which are more resilient throughout economic cycles. Maintain BUY. Target price: S$2.59.
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| UOB KAYHIAN | UOB KAYHIAN |
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Plantation – Malaysia Sep 24: Inventory Rebuilding Slow As Production Declines
MPOB's Sep 24 data showed slow inventory rebuilding due to a decline in production, though exports improved. CPO prices are expected to remain steady at RM4,000- 4,500/tonne, driven by the global tightness in palm oil supply. Notable companies offering sustained dividend yields within the sector include Hap Seng Plantations (HAPL MK/BUY) and Kim Loong Resources (KIML MK/HOLD). Maintain OVERWEIGHT.
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Public Bank (PBK MK) Acquiring Stake In General Insurer
Public Bank surprised the market by announcing an all-cash acquisition of a 44.15% stake in LPI Capital from the estate of the late Tan Sri Teh Hong Piow and Consolidated Teh Holdings. We deem the acquisition to be neutral to slightly positive as it will lift the group’s earnings and CET1 ratio by a marginal 1.5% and 20bp respectively. Maintain BUY with an unchanged target price of RM5.35 (1.75x 2025F P/B, 12.5% ROE). Its valuation remains appealing at -1SD to the historical mean P/B. Public Bank (PBK MK) Acquiring Stake In General Insurer Public Bank surprised the market by announcing an all-cash acquisition of a 44.15% stake in LPI Capital from the estate of the late Tan Sri Teh Hong Piow and Consolidated Teh Holdings. We deem the acquisition to be neutral to slightly positive as it will lift the group’s earnings and CET1 ratio by a marginal 1.5% and 20bp respectively. Maintain BUY with an unchanged target price of RM5.35 (1.75x 2025F P/B, 12.5% ROE). Its valuation remains appealing at -1SD to the historical mean P/B.
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