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PHILLIP SECURITIES |
UOB KAYHIAN |
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Frencken Group Ltd Growing with a giant
▪ We believe Frencken is the key supplier for components in the most advanced lithography machine used to produce 2nm chips by their Netherlands-based customer. Frencken will ride on the organic growth of lithography, new products turning into mass production and customer shifting production into Asia. The investments into new capacity have been made as the ramp begins for multiple years.
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PropNex (PROP SP) Poised For Stellar 1H25 Earnings Growth With More To Look Forward To
PropNex’s CEO has delivered a bullish outlook, highlighting strong private resale and new launch volumes, resilient demand despite revised SSD rates, and rising project launches in 2025. We expect the company to report strong 1H25 numbers, driven by robust transaction activity.
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UOB KAYHIAN |
CGS CIMB |
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Hong Leong Bank (HLBK MK) Strong Growth Trajectory Intact
Management remains optimistic about sustaining its strong growth trajectory while delivering improved operating Jaws. Despite the substantial provision write-backs, overall buffers, including regulatory reserves, remain robust at 250% – among the highest in the sector. Maintain BUY on HLBank with a target price of RM23.80 (based on 1.22x FY26F P/BV and 11.5% ROE). We continue to favour the stock for its solid growth prospects, resilient asset quality and attractive valuations.
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PTT Exploration & Production Balancing profitability and sustainability
■ While we expect crude oil price to be soft in 2H25F, PTTEP’s gas price should stay resilient at US$5.7/mmbtu, providing key support to EPS. ■ Its plans to operate CCS hubs with cross-border service need concrete regulatory framework/financial support from the government, in our view.
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| LIM & TAN | LIM & TAN |
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AIMS APAC REIT / AA REIT ($1.33 up 0.01) is pleased to announce that its Sponsor, AIMS Financial Group, has strategically acquired an additional 7.00% stake of 57,163,098 AA REIT units to bring its total ownership to 18.66%. The units were acquired from substantial unitholder, ESR HK Management Limited, which is part of ESR Group Limited. At AA REIT’s last trade price of $1.33, its market cap is $1.1bln and trades at forward and prospective consensus yields of 7.2% and 7.4% respectively. Price to book is about 1x while Bloomberg consensus 1 year target price of $1.50 implies a 1 year potential capital return of 13%. Including the blended 2 year forward estimated yield of 7.3%, total expected 1 year return is just above 20%. We like the stable, consistent, predictable and defensive performance of AA REIT and given its attractive 20% potential captial plus dividend return over the next 12 months we maintain our “Accumulate” rating on AA REIT.
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Lum Chang Creations (LCC) is set to list on the Catalist board 21’July 25 (ATM application closes 17’July, 12pm), following its spin-off from parent company Lum Chang Holdings. As a leading urban revitalisation specialist in Singapore with a proven track record, LCC is well-placed to benefit from the uptrend in conservation and interior fit-out of buildings and to ride on Singapore’s construction upcycle over the next 2-3 years. We recommend a “Subscribe” for the IPO shares with a fair value of 38 cents per share (52% potential upside). Our view is that IPO valuations at a S$78.8mln market cap and 6.8x FY25F P/E have underpriced LCC’s growth potential and asset-light model which has translated into high ROEs for the company. We estimate dividends of 1.2 S cts/1.4 S cts in FY25F/FY26F based on a 33% payout ratio, providing shareholders a decent 4.8%/5.6% yield. Our fair value on Lum Chang Creations is S$0.38/share, pegged to 9.6x blended FY25F/26F P/E (10% discount to peers). |
