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CGS CIMB |
PHILLIP SECURITIES |
Capitaland InvestmentSetting clear goals■ CLI plans to improve ROE by growing FUM and profitability as well as optimising capital efficiency.■ It intends to double FUM to S$200bn by 2028F and increase operating earnings to S$1bn p.a. by 2028-30F.■ We maintain our Add rating with an unchanged sum-of-parts RNAV-based TP of S$4.30.
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City Developments LimitedImproving residential demand▪ No financials were provided for the 3Q24 operational update. The net gearing ratio stood at 70%, following several acquisitions, including the Hilton Paris Opéra hotel and four Japan PRS properties.▪ Strong sell-through rate for new launches—Kassia, launched in July, and Norwood Grand, launched in October, have sold 65% and 84% of units, respectively. Other projects continue to sell well, with Tembusu Grand and The Myst having sold 91% and 73% respectively.
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PHILLIP SECURITIES |
UOB KAYHIAN |
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CapitaLand Investment Limited Divesting ION Orchard
▪ CLI will be divesting its 50% stake in ION Orchard to its sponsored REIT, CapitaLand Integrated Commercial Trust (CICT SP, non-rated), for a sales consideration of c.S$1.08bn. ION Orchard is currently held in a JV with Sun Hung Kai Properties (SHKP), which holds the remaining 50% stake.
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CSE Global (CSE SP)3Q24: Results In Line; Potential Beneficiary Of More Data Centre ProjectsCSE's 3Q24 revenue of S$214m (+15% yoy) is in line with expectations, bringing 9M24 revenue to 75% of our full-year estimate. Top-line growth stemmed from higher electrification (+22% yoy), communications (+12% yoy) and automation (+7% yoy) revenue. 9M24 orderbook was healthy at S$634m despite muted order wins in 3Q24 (-38% yoy). We remain positive on its 4Q24 order outlook with around S$129m contract wins in Nov 24. Maintain BUY with an unchanged target price of S$0.59.
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LIM & TAN |
LIM & TAN |
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SATS Ltd ($3.86, up 0.02), a global leader in gateway services and a leading food solutions provider in Asia, today announced a strategic partnership with Avilog Logistics Services Company (“AVILOG”), an investment vehicle newly formed by Albawardi Holding Group (“ABG”) and Abdulkadir Al Muhaidib and Sons Company (“AMG”), to accelerate its growth in the Kingdom of Saudi Arabia’s (“the Kingdom”) rapidly expanding aviation and logistics sector. At $3.86, SATS is capitalized at $5.74 billion and trades at 2.3x book and 21x forward PE while dividend yield of 0.8%. While we like the strategic tie up between SATS and AVILOG given the potential synergies and “1 plus 1 equals 3” kind of value add, we note that SATS valuations are not cheap. Maintain HOLD.
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Sembcorp Industries / SCI (S$5.23, down 2 cents), through its wholly-owned renewables subsidiary Sembcorp Green Infra Private Limited, has received the Letter of Award (LOA) for a 300MW Inter State Transmission System (ISTS) connected wind-solar hybrid power project (the Project) from NTPC Ltd (NTPC). The build-own-operate Project is part of a 1.2GW bid issued by NTPC. Capitalized at S$9.3bln, Sembcorp Industries trades at 10.0x P/E and 1.8x P/B, with a dividend yield of 2.7%. Consensus TP stands at S$6.82, representing a 31% upside. We like SCI’s pivot towards the green energy industries which is in line with global government push towards ESG. Maintain Accumulate. |
