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LIM & TAN |
MAYBANK KIM ENG |
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CapitaLand Investment Limited / CLI ($2.56, down 5 cents), a leading global real asset manager, has reported the sale of approximately 4.88% interest in Capitaland Ascott Trust (CLAS).
As part of CLI Group’s asset-light growth strategy, CLI’s wholly-owned subsidiary, The Ascott Limited, has sold 185,253,000 stapled securities in CLAS, representing approximately 4.88% in CLAS, at the closing price of CLAS’ stapled securities traded on 18 December 2024, to an unrelated third party for an agreed consideration of approximately S$162 million. The agreed cash consideration for the Transaction was arrived at on a willing-buyer, willing-seller basis, following arms’ length negotiations, and was based on the closing price of CLAS’ stapled securities of S$0.875 traded on 18 December 2024.
Capitalized at S$13.08bln, CLI trades at 0.9x P/B and 4.7% dividend yield. We note that the non-cash accounting loss would be more than offset by the significant one-off exceptional gain that CLI will be getting from the sale of its 50% stake in ION-Orchard to CICT. The monetization of Capitaland Ascott Trust would allow CLI to recycle capital from matured and more cyclical assets into the steady and recurring income streams (funds under management) from its asset management arm with the recent purchase of the asset manager in Australia. We continue to expect a special dividend payment on top of their usual 12 cents dividend per share this year. We maintain an “Accumulate” rating on CLI with consensus target price of $3.55, representing upside potential of 39%.
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Eco World Development (ECW MK) Partnering with SD Guthrie – a win-win deal
MOU signed for industrial park in Negeri Sembilan We are positive on ECW’s latest MOU with SD Guthrie (SDG MK, BUY, CP MYR4.92, TP MYR5.41) and NS Corporation (state government representative) to develop a 1,166-acre industrial park in Negeri Sembilan. The collaboration is a win-win, with ECW leveraging SDG’s sizeble landbank and SDG benefiting from ECW’s strong track record and branding. We maintain our earnings forecasts and MYR2.25 TP (1.3x FY25E P/B) pending further details. Reiterate BUY.
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MAYBANK KIM ENG |
MAYBANK KIM ENG |
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Mynews Holdings (MNHB MK) A good end to FY24
Maintain BUY with an unchanged TP of MYR0.80 MNHB’s 4QFY24 results outperformed on a lower-than-expected effective tax rate. The group’s outlook remains positive with expectations for stronger sales momentum in FY25 arising from a broad-based improvement in consumer spending, with higher civil service salaries and minimum wage increases. Hence, we keep our FY25-26 earnings estimates unchanged, while introducing FY27E. Maintain BUY with an unchanged TP of MYR0.80, based on CY25E PER of 32x (normalised 2016-2018 mean).
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SP Setia (SPSB MK) Sells land in Iskandar Malaysia
Another land sale in Taman Pelangi; maintain BUY We are positive on SPSB’s latest land sale in Taman Pelangi for its attractive pricing (MYR157m or MYR600.9psf), which is 20% above external valuation. The land sale, secured via a tender process, is expected to complete by 1H25. The proceeds will strengthen SPSB’s balance sheet and support its upcoming project in Australia. Net gearing would decline to 0.34x post-land sale. We raise our FY25/26 earnings forecasts by 26%/2% to reflect the sale. Our TP is intact at MYR1.64, on 0.5x FY25E P/B. BUY.
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