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PHILLIP SECURITIES |
UOB KAYHIAN |
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Sembcorp Industries Ltd Property saves the day
▪ FY24 revenue was below expectations at 93% but net profit exceeded at 111% of our FY24e forecast. Revenue was weaker due to lower than expected wholesale electricity prices, whilst margins benefited from land sales
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REITs – Singapore 4Q24 Round-up: Staying On Task
Four S-REITs out of 21 under our coverage beat expectations, namely CICT (healthy reversion and revaluation gain), CLAS (uptrend in RevPAR), DCREIT (backfilled data centres in LA and Toronto) and KDCREIT (reversion of >30% for Singapore colocation contracts). Maintain OVERWEIGHT. BUY retail REIT CICT (Target: S$2.37), data centre REIT DCREIT (Target: US$0.88) and healthcare REIT PREIT (Target: S$4.85). We also like CLAS (Target: S$1.38) and KORE (Target: US$0.33).
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UOB KAYHIAN |
MAYBANK KIM ENG |
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Centurion Corp (CENT SP) 2024: Higher-than-expected Earnings Supported By Fair Value
Gains CENT reported a 45% increase in core net profit of S$111m for 2024, supported by strong rental revisions and higher occupancies across both PBWA and PBSA asset classes. Management noted persistent supply-demand imbalances that underscored its pricing power during lease renewals, as well as a favourable macro backdrop in Singapore’s PBWA segment. Maintain BUY. Target price raised to S$1.16.
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LHN Ltd (LHN SP) Executing its expansion plans
1Q25 operationally on track, maintain BUY LHN released its 1QFY25 voluntary business update with no financial details. As at 31 Dec 2024, the group maintained healthy overall occupancy rate of over 95% for its industrial, commercial and Coliwoo co-living space (excluding JV properties and those under progressive handover). Amidst robust rental demand, we think this should continue to support earnings growth as the group is eyeing more partnerships to expand its co-living operations. We keep our FY25-27E estimates intact and retain BUY with an unchanged TP of SGSD0.55, pegged at an undemanding 7x forward P/E.
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| MAYBANK KIM ENG | LIM & TAN |
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Sea Ltd (SE US) 4Q24 First Cut - beat; strong FY25 growth guidance
Strong momentum sustained in 4Q24… 4Q24 GAAP revenue grew 37% YoY/14% QoQ and was 6% ahead of MIBG and street forecasts. Adjusted EBITDA rose 4x YoY and 13% QoQ, and was 2% ahead of MIBG/street forecasts. All the operating segments’ revenue were ahead of expectations except for Garena bookings, which came 5% below street estimates (in line with ours). Shopee’s GMV increased at a healthy pace of 24% YoY/14 QoQ, 6% ahead of MIBG/street. Garena’s bookings rose 19% YoY/-2% QoQ. DFS was the bigger area of positive surprise with revenue up 55% YoY/19% QoQ, beating expectations by 9-14%.
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LHN’s market cap stands at S$192mln and trades at a forward P/E of 5.8x and 0.8x P/B. Dividend yield of 6.5% remains attractive. LHN continues to make inroads across its different revenue streams in the Space Optimisation, Property Development, Facilities Management and Energy segments. There are opportunities for growth in the coliving sector, backed by an increase in keys, resilient occupancy rates and Coliwoo’s position as a market leader. Bloomberg consensus 1-year average target price of 55 cents implies a potential return of 19.6%. We maintain Accumulate on LHN Limited. |
