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UOB KAYHIAN |
UOB KAYHIAN |
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United Hampshire US REIT (UHU SP) Grocery-anchored Strip Centres Gaining Prominence As A Distinct Asset Class
Occupancy for strip centres has improved to 96% after many years of muted supply. Institutional investors have started to invest in strip centres due to availability of data, increase in foot traffic, higher occupancy and improved lending conditions. UHU’s portfolio occupancy is on an upward trend, improving 1.3ppt qoq to 97.6% in 3Q24. UHU provides a resilient and attractive 2025 distribution yield of 9.2% and trades at P/NAV of 0.64x. Maintain BUY. Target price: US$0.57.
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Metals and Mining – China Hawkish Fed Spurs North America ETF Outflows; Copper Prices Edge Up On China Stimulus Hopes
The robust US jobs market reinforced expectations for a less aggressive rate-cut path, but gold prices remained resilient and supported by US policy uncertainties. A hawkish Fed has led to a net outflow of North American gold ETF, but we believe inflation concerns will eventually boost retail demand. LME/SHFE copper prices hit a one-month high on optimism on demand from China and indications of robust Chinese copper demand in recent weeks. Maintain OVERWEIGHT.
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UOB KAYHIAN |
LIM & TAN |
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SP Setia (SPSB MK) Set To Spring
SP Setia’s de-gearing efforts are bearing fruit, driven by significant non-core land sales in the past two years. With these disposals largely concluded, we believe management can now refocus on its core operations. We are optimistic on its prospects, backed by robust industrial sales and resilience in the luxury residential segment. Trading at 0.5SD below the mean, it represents a laggard industrial play within the property sector. Maintain BUY with an unchanged target price of RM1.95.
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The Business Times reported that Capitaland Investment ($2.46, up 1 cent) announced several key executive appointments on Tuesday as part of its ongoing leadership renewal, bringing in three female leaders into senior roles. With effect from Jan 22, Yvonne Siew will be appointed managing director and head of product development and wealth markets of private capital markets of the real asset manager. CLI’s market cap stands at 12.3bln and currently trades at 17.2x forward PE and 0.9x PB, with a dividend yield of 4.9%. Consensus target price stands at S$3.55, representing 44.3% upside from current share price. With the recent monetization of its 50% stake in Ion Orchard to CICT, we believe that on top of its usual dividend of 12 cents per share, there could be another one-time special dividend, similar to 2022 of 3 cents per share. We maintain an Accumulate rating on CLI given its attractive valuations and leading position in Singapore’s ESG initiatives for the property business segments. |
| LIM & TAN | MAYBANK KIM ENG |
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The Straits Times: Outgoing DBS Group ($43.90, down 0.17) chief executive officer Piyush Gupta expects the US to remain as a global growth engine but warns of three potential headwinds that could lead to a market correction. Mr Gupta, who joined the Singapore bank in 2009 from Citibank, will be passing the reins to Ms Tan Su Shan, the group’s head of institutional banking, at DBS’ annual general meeting on March 28. At $43.90, DBS is capitalized at $125bln and trades at 11.1x forward PE, 4.8% dividend yield and 1.9x price to book. Bloomberg consensus 1 year target price of $45.80 implies a potential upside of 4.3%
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Malaysia Technology A mixed bag for 2025
POSITIVE on EMS, but NEUTRAL on Semicon We expect the outlook for semicon (OSAT/ATE/FAS) to remain challenging in the near-term, underpinning our NEUTRAL rating (unchanged). We are selective on our sector picks, preferring auxiliary front-end names with direct exposure to the continued growth in global foundry utilisation in 2025. Our key BUYs are Frontken and SAM Engineering. However, we are more sanguine on the EMS sub-sector’s prospects as local players continue to benefit from global outsourcing trends and growing exposure to data centres. PIE and VSI are our preferred EMS sector picks.
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