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UOB KAYHIAN |
UOB KAYHIAN |
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Paragon REIT (PGNREIT SP)
Singapore Assets Are Resilient But Valuation Looks Fair
Paragon continues to generate positive rental reversion as tenant sales for luxury goods, while in the negative territory, outperform steeper declines in other Asian markets. PGNREIT intends to elevate the positioning of Paragon towards top-tier luxury brands and set up more duplex stores. Clementi Mall generates steady growth in line with resiliency of consumer spending at suburban malls. While PGNREIT is a takeover target, 2025 distribution yield of 5.2% looks fair.
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Market Strategy 2025 Year Ahead: De-risking And De-coupling
Expect increased market volatility in 1H25 as the US embarks on another round of trade rebalancing with China via higher tariffs. We expect China to roll out growth supportive policies on top of the de-risking measures that have been announced. Hence, we prefer a domestic orientation and policy beneficiaries for 1H25. Our MSCI China Index target is at 68pt, based on 7% EPS growth and 10.5x PE. The downside target is 51pt in the event of a full-fledged trade war.
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PHILLIP SECURITIES |
UOB KAYHIAN |
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LHN Limited Both capacity and occupancy rising
▪ FY24 revenue and adj. PATMI beat our expectations at 110%/119% of our FY24e forecast, respectively. Earnings beat expectations from lower administration expenses due to bonus provisioning and higher co-living revenue.
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STRATEGY – MALAYSIA Alpha Picks: Window Dressing Opportunity
Our Alpha Picks outperformed the FBMKLCI in Nov 24 (+3.4% vs -1.9%). While the equity market continues to be sidelined, this time by fears of Donald Trump’s trade policies, there are still ample trading opportunities. Dec 24’s focus includes beneficiaries of Iskandar 2.0 newsflow (Eco World), M&A beneficiaries (Yinson), strong earnings momentum in 4Q24 (RGB), and window dressing opportunities (MISC). Dec 24 picks: EcoWorld, Gamuda, Lagenda, MISC, MYEG, Pekat, RHB Bank, RGB, VSI and Yinson.
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MAYBANK KIM ENG |
LIM & TAN |
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Marco Polo Marine (MPM SP) Exciting times ahead
Maintain BUY with SGD0.08 TP FY24 core profit of SGD26.3m is in line with our forecast. Going forward, we reckon that exciting times are just starting for MPM. Its CSOV is 91% completed and will likely start operating by March 25. We also expect utilisation for the first 2 years to be close to 95% with average rates of around USD50k/day. Charter rates are also expected to increase by 5-10% next year. The manpower shortage issue has also improved with 3 rd party repairs likely to rebound in FY25E. We also expect orders for 1-2 CTV in 2025. We retain our BUY rating and SGD0.08 TP based on 10.5x FY25E P/E. Following the results, we raise our FY25E-27E earnings by 9-14%
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Keppel Ltd ($6.81, up 0.07) through its Infrastructure Division, has signed a series of three Memoranda of Understanding (MOUs) with esteemed partners at the 29th Confederation of Indian Industry (CII) Partnership Summit 2024 in New Delhi, India, aimed at helping to advance India’s energy transition and sustainable development. The CII is a key platform organised by India’s Ministry of Commerce and Industry for fostering the country’s global engagement and international partnerships to enable the co-creation of sustainable and inclusive growth strategies. We see Keppel Ltd as spear heading Singapore’s push for clean energy and sustainability initiatives both locally as well as internationally (such as India). These moves are nicely aligned with global government’s push towards net zero neutrality footprint over the next decade. We see huge opportunities ahead for Keppel. Valuations are still reasonable at 14x PE, 1.2x book, 5% yield and consensus 1 year target price of $8.11 implies a potential return of 20% from current level. The restart of Keppel’s asset monetization program should propel the stock higher. We maintain an “Accumulate” rating on Keppel Ltd |
