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UOB KAYHIAN |
UOB KAYHIAN |
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iFAST Corporation (IFAST SP) 2Q24: Steady AUA Growth; ePension On Track
iFAST’s 2Q24 earnings of S$16m (+346% yoy, +10% qoq) were above expectations, with 1H24 forming 53% of our full-year estimate. The HK ePension division and record AUA (+19% yoy, +6% qoq) continued to drive strong 2Q24 performance. According to the latest schedule published, two MPF trustees have been onboarded, while the remaining are expected to onboard from Sep 24 to end-25. Maintain HOLD with a 5% higher target price of S$8.03 (S$7.64 previously).
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Keppel DC REIT (KDCREIT SP) 1H24: Singapore Provided Strong Positive Rental Reversion
1H24 results were above our expectations. KDCREIT clocked strong positive rental reversion of more than 40% for a major renewal contract in Singapore in 2Q24, a reflection of strong demand and tight vacancy locally. Revenue contribution from Singapore grew 6.6% yoy in 1H24. KDCREIT benefits from the extremely tight vacancy rate of 1.0% in Singapore and is expected to maintain healthy and positive rental reversion in 2H24. Upgrade to BUY. Target price: S$2.09.
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UOB KAYHIAN |
UOB KAYHIAN |
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Mapletree Industrial Trust (MINT SP) 1QFY25: Steady Execution In Singapore; Focused On Expansion In Data Centres
MINT achieved broad-based positive rental revision of 9.2% in 1QFY25 for renewed leases across all property segments in Singapore. It has secured an established healthcare operator as a replacement tenant for data centre at Brentwood, Tennessee. It plans to recycle its assets and diversify into established data centre markets in Asia Pacific and Europe. MINT provides FY25 distribution yield of 5.9% (DCREIT: 6.3% and KDCREIT: 4.9%). Maintain BUY. Target price: S$2.78.
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SIA Engineering (SIE SP) 1QFY25: Earnings A Slight Miss, But May Catch Up In The Rest Of FY25
SIAEC’s 1QFY25 net profit of S$33.2m (+23.0% yoy, -4.8% qoq) was slightly behind our projection, at 21.4% of our full-year forecast. 1QFY25 operating profit was weaker than expected, due to SIAEC’s lumpiness in project revenue recognition and supply chain constraints. We remain hopeful that SIAEC’s earnings performance may catch up in the rest of FY25. We see little share price downside given its benign valuation and proactive share buybacks. Maintain BUY. Target price: S$2.70.
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| OCBC | OCBC |
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Mapletree Industrial Trust Broad-based solid performance
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First REIT
Steady as she goes
• IDR and JPY depreciation continues to weigh on financial performance and gearing • Cost of debt remains stable with 86.6% of debt on fixed rates or hedged, and no refinancing requirements until May 2026 • 2Q24 distribution per unit (DPU) of 0.60 Singapore cents declared, constituting 25% of our full year forecast and meeting our expectations Investment thesis First REIT is a Singapore-listed healthcare real estate investment trust (REIT) with a portfolio of 32 nursing homes and hospitals located in Singapore, Japan, and
Indonesia. Its relatively long weighted average lease expiry (WALE) of 11 years as at 30 Jun 2024 provides strong cash flow visibility, while built-in rental escalation clauses in its well-structured master leases provide potential for rental growth and upside sharing with tenants. With the introduction of its 2.0 Growth Strategy, First REIT’s risk profile has been improving, as it seeks to diversify across tenants and geographies, while structural megatrends such as an ageing population and increasing demand for quality healthcare support demand for its assets. Although higher for longer interest rates may slow First REIT’s pace of diversification into Developed Markets (DM), we think its current steady state and attractive distribution yield make it a potential defensive addition to portfolios. |
