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PHILLIP SECURITIES |
PHILLIP SECURITIES |
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Phillip 2025 Singapore Strategy Don’t Fight The Trump
SINGAPORE | STRATEGY 3 January 2025 Review: It was a memorable 2024. The Singapore market was up 16.9% in 2024 (2023: +0.3%). And only 1.6% shy of the all-time high achieved in October 2007. If you prefer, the market did nothing after 17 years. Including dividends, average returns were around 4.5% p.a. The finance sector was the stellar outperformer in 2024, with gains of 34%, led by DBS's 44% surge (Figure 1). REITs succumbed to another year of underperformers with a decline of 11.8% (Figure 2). Massive gains were in transport-related stocks (Figure 3), supported by improved volumes and higher prices.
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Wee Hur Holdings Ltd Unlocking value from PBSA sale
▪ We estimate worker dormitory revenue and profits will have a CAGR of c.40% from FY23 to FY25 due to 11k more worker accommodations or a 70% jump in bed capacity (1H24: 15,744 beds) operational in FY25. Pioneer Lodge is expected to be partially operational by 1Q25 and fully operational by the end of FY25. ▪ Wee Hur Holdings recently secured an A$1.6bn exit from its PBSA portfolio, potentially bringing in net proceeds of S$320mn. Given the Group’s track record of declaring special dividends during strong financial performance, we believe there is a strong likelihood that special dividends may be announced. Post disposal, net cash will be around 67% of the current market cap. ▪ Initiate coverage of Wee Hur Holdings with a BUY recommendation and SOTP target price of S$0.62. The stock is currently trading at around 36% below book value.
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UOB KAYHIAN |
UOB KAYHIAN |
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Mapletree Logistics Trust (MLT SP) Weighted Down By Exposure To Greater China
We remain concerned about MLT’s exposure to China as a high vacancy rate of 21.5% continues to exert downward pressure on rents. Demand could further weaken if the USChina trade conflict resurfaces and intensifies. Fortunately, weakness in China is offset by positive rental reversion in Singapore and Australia. MLT provides FY26 distribution yield of 6.3% (FLT: 7.3%). Maintain HOLD. Target price: S$1.41.
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Seatrium (STM SP) Positive Developments In 4Q24 Close Out The Year
Seatrium’s business activity did not flag in 4Q24 with a notable contract win for a floating production unit for the Gulf of Mexico as well as the delivery of a fifth jack-up rig to Borr Drilling. A tie-up with an Indian shipyard presents interesting growth opportunities for the company in the medium to longer term. Key near-term share price catalysts are the conclusion of the MAS/CAD investigation, and the completion of two low-margin contracts in the US. Maintain BUY. Target price: S$2.80.
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LIM & TAN SECURITIES |
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Marco Polo Marine’s market cap stands at $198.9mln and currently
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