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MAYBANK KIM ENG |
UOB KAYHIAN |
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Parkway Life REIT (PREIT SP) Consistent delivery
Growing distribution steadily; maintain BUY PREIT reported 1QDPU of SGD3.84c, +6.1% QoQ/+1.3% YoY. Growth was underpinned by prior acquisitions and step-up leases, partially offset by enlarged unit base and JPY depreciation. While gearing was relatively unchanged, interest expense rose and coverage ratio deteriorated on higher JPY rates and larger debt. PREIT divested its Malaysia exposure at slight premium to sponsor while asset enhancement initiatives (AEI) at Mount Elizabeth Orchard remains on schedule. Maintain BUY.
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Nanofilm Technologies International (NANO SP) 1Q25: Revenue In Line But Gross Margin Misses Expectations
Nanofilm’s 1Q25 revenue of S$44m (+12% yoy) met our expectation, forming 19% of our full-year estimate. However, gross margin fell 6ppt yoy, missing our expectation of gross margin remaining flat yoy. Revenue growth was driven by the AMBU and NFBU segments. While Nanofilm’s direct exposure to the US’ tariffs is limited, the impact may be felt indirectly. Although Nanofilm’s revenue recovery is on track, it may take some time to achieve meaningful earnings. Maintain SELL with a lower target price of S$0.46.
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UOB KAYHIAN |
CGS CIMB |
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Sunny Optical (2382 HK) Takeaways From Taiwan NDR
We hosted an NDR with Sunny Optical in Taiwan last week. Questions were mostly related to impacts from the trade war, the vehicle business, handset business’ recovery and some upcoming prospects such as XR and robotics vision. Overall the investors have turned more positive on Sunny’s outlook compared with half a year ago, but we also believe that investors would prefer a bit more visibility on trade deals before turning positive on the market. Maintain BUY. Target price: HK$100.00.
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ESR-REIT Growing core distribution
■ 1Q25 distributable income of S$44.2m is in line, forming 26% of our FY25F estimates. ■ EREIT achieved rental reversion of +8.6% in 1Q25, while portfolio occupancy dipped to 91.6% sequentially. ■ Maintain Add rating, with an unchanged DDM-based TP of S$0.36.
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| CGS CIMB | CGS CIMB |
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Technology - Overall Tariffed outlook – downgrade to Neutral
■ US reciprocal tariffs, its subsequent 90-day pause and the trade tension escalation between China and the US, are creating uncertainties. ■ The situation continues to evolve, with potential macro economic slowdown reducing demand, posing downside earnings risks for our coverage. ■ Downgrade sector rating from Overweight to Neutral, given the risks from the tariffs. Most companies have net cash balance sheet to weather the situation.
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Frencken Group Ltd Maintaining its 1H25F revenue outlook
■ Currently, an estimated 9% of Frencken’s sales are exported to the US from its Singapore facilities, and customers are bearing the bulk of the tariff, if any. ■ Reiterate Add, but lower TP to S$1.15 as valuation could de-rate to -1 s.d. below its 5-year average P/E to factor in tariff-induced uncertainties.
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