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PHILLIP SECURITIES |
UOB KAYHIAN |
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NetLink NBN Trust Resilient cash flows
▪ 1H25 results were within expectations. 1H25 revenue and EBITDA were 49%/48% of our FY25e forecast, respectively. 1H25 DPU increased 1.1% YoY to 2.68 cents (1H24: 2.65 cents). ▪ 1H25 revenue was flat despite higher residential connections due to lower connection charges (effective Apr 24) and a decline in project revenue. EBITDA declined due to higher staff costs, operation and maintenance expenses, and equipment write-offs.
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Frasers Logistics & Commercial Trust (FLT SP) 2HFY24: Logistics Properties Propel Growth And Rental Reversion
FLT achieved positive rental reversion of 39%, 58.1% and 31.1% respectively for logistics properties in New South Wales, Victoria and Queensland in 4QFY24. It has backfilled vacant space and restored occupancy for its logistics properties in Australia back to 100%. FLT’s ability to grow via acquisition is supported by a low aggregate leverage of 33.0% and large debt headroom of S$801m. FLT provides FY25 yield of 6.3% for (MLT: 6.3%). Maintain BUY. Target price: S$1.44.
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UOB KAYHIAN |
UOB KAYHIAN |
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Singapore Post (SPOST SP) 1HFY25: Results Miss Despite Strong Growth
For 1HFY25, SPOST posted higher core PATMI (+87.6% yoy) on the back of increased contributions from the Australia and Singapore businesses. The Singapore business saw higher profits, driven by the postal rate hike in 3QFY24, while the Australia business posted robust growth due to the consolidation of BEX. The international business faced headwinds which dampened cross-border volumes. Maintain BUY with the same SOTP-based target price of S$0.61.
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SIA Engineering (SIE SP) 1HFY25: Earnings A Slight Miss; Investing For Long-term Growth
SIAEC’s 1HFY25 core net profit of S$70.4m (+20.4% yoy) was a slight miss, at 45% of our full-year forecast. 1HFY25 operating profit came in weaker than expected, due to supply chain constraints and some gestation costs related to SIAEC’s new business expansion initiatives. We recommend investors to stay invested as these expansion projects, though somewhat a drag to near-term earnings, would build the foundation for SIAEC’s future growth. Maintain BUY. Target price: S$2.70.
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UOB KAYHIAN |
MAYBANK KIM ENG |
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CapitaLand Investment (CLI SP) Executing Well Operationally But Cautious On 2025
CLI announced a 3Q24 business update that was operationally in line with estimates; however, revenue was slightly lower than expected at S$2.26b (+1% yoy). In our view, the highlight was the company exceeding its capital recycling target of S$3b having divested of S$4.1b of assets ytd. Although management stated that it expects to perform well operationally, it guided for a more challenging 2025 on the earnings front. Maintain BUY. Target price lowered to S$3.85.
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CapitaLand Int. Comm. Trust (CICT SP) Business as usual
Operating trends in line with expectation CICT reported 3Q NPI of SGD289.8m, +0.4% QoQ, +5.4% YoY. Organic revenue growth and better cost management were the drivers. Operating trends were little changed with relatively steady retail offsetting weakness in overseas offices. Occupancy slipped due to offices. High single digit reversion was retained for retail while offices moderated. Management guided low single digit positive reversion for next year and a conservatively steady borrowing cost. Focus is on achieving stable distribution through operations. We trim our FY25 estimate and TP but reiterate BUY due to its resilient portfolio and credit attributes.
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