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PHILLIP SECURITIES |
FAR EAST HOSPITALITY |
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CapitaLand Ascott Trust Portfolio reconstitution efforts bearing fruit
▪ Limited financial details were provided in this business update. 3Q24 gross profit rose 8% YoY, driven by stronger operating performance and portfolio reconstitution initiatives, which included S$350mn in acquisitions and S$500mn in divestments at premium to book value YTD. Excluding acquisitions and divestments, gross profit rose 2% YoY.
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Far East Hospitality Trust Growth is moderating
• Gross revenue 3Q24 is in line with expectations, sliding by 4.8%YoY to S$28.8mn in the absence of government hotel contracts, in which hotel revenue declined by 8.2%YoY to S$21.4mn. 9M24 revenue forms 72% of our FY24e estimates. Revenue from the hotel segment declined 8.2% YoY due to a one-off revenue boost in 3Q23; excluding this, the hotel segment would have shown positive growth, supported by a 2.8% YoY increase in RevPAR in 3Q24.
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PHILLIP SECURIITES |
MAYBANK KIM ENG |
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Oiltek International Ltd Dancing in Latin America
▪ Oiltek announced a RM45.5mn contract in Latin America. This brings the total number of contracts secured this year to RM197.8mn and a record outstanding order book of RM400.9mn, or two years of FY23 revenue. The project involves refining palm and soybean oil.
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Far East Hospitality Trust (FEHT SP) Impacted by one-offs
Capitalizing on visitor arrivals, BUY FEHT’s 3Q24 NPI of SGD26.2m fell 6.8% YoY. Adjusted for one-offs of last year, NPI rose by an estimated 2.4% YoY. Hotel and service residence (SR) stats saw steady progress through the year, led by room rates. Financing metrics were stable, with gearing and debt cost unchanged. While FEHT is focusing on making acquisitions, it may also divest non-core assets. With a stable distribution profile, low gearing and benefits from potential interest rate cuts, we maintain BUY with unchanged forecasts and TP.
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UOB KAYHIAN |
UOB KAYHIAN |
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Mapletree Industrial Trust (MINT SP) 2QFY25: Generating Positive Reversions And Stable Occupancies
MINT continues to generate steady DPU growth of 1.5% in 2QFY25. It registered average rental revision of 10.7% for its Singapore portfolio (hi-tech: 7.6%, flatted factories: 13% and stack-up/ramp-up: 10.9%). Occupancy for North American Portfolio improved 3.1ppt qoq to 90.9% due to a new lease with Vanderbilt University Medical Center at Brentwood, Tennessee. MINT provides a FY26 distribution yield of 5.9% (DCREIT: 6.4% and KDCREIT: 4.4%). Maintain BUY. Target price: S$3.05.
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Wilmar International (WIL SP) 3Q24: Results Below Expectations
Wilmar’s 3Q24 results trended way below our and market expectations. Revenue grew both qoq and yoy on higher sales volume across all segments, except for tropical oils. However, profits fell qoq due to compressed margins across most business segments. The yoy decline was due to weaker performance from China operations and the sugar segment, which both delivered strong 3Q23 results. Maintain HOLD with an 8% lower target price of S$3.00 (S$3.25 previously).
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