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UOB KAYHIAN |
PHILLIP SECURITIES |
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Elite UK REIT (ELITE SP) Pivot Towards Growth After Strengthening Balance Sheet
ELITE intends to pivot towards growth in 2025 after successfully deleveraging with aggregate leverage lowered by 6.6ppt yoy to 43.4%. The impending divestment of Peel Park site would further reduce gearing and could lead to a potential special dividend. Management intends to redevelop Lindsay House at Dundee, Scotland and Newport Road in Cardiff, Wales into PBSA. ELITE is a recession-resistant counter-cyclical yield play. Maintain BUY. Target price: £0.35.
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LHN Limited A year for harvesting
▪ Operational metrics for 1Q25 were healthy. The occupancy rate of over 95% for all the properties, an additional 45 keys for Coliwoo to 2,586 keys and securing 29 new facilities management contracts. LHN food chain factory has been launched and sales of the 49 units are underway.
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CGS CIMB |
MAYBANK KIM ENG |
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CapitaLand Ascott Trust Seeking higher yields as core DPS grows
■ Lady Gaga brings her concerts to Singapore. We see upside for hospitality REITs, including CLAS, though to a lesser extent than Taylor Swift’s last year. ■ STB reported positive data points for Jan 2025. We think CLAS’s Singapore portfolio will likely benefit as inbound travel demand stays buoyant. ■ Reiterate Add. We like CLAS’s improving DPS quality as core DPS grows over the next two years, when assets undergoing AEI resume operation.
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Frencken Group Ltd (FRKN SP) Strong semi-con sales
Top Pick: Maintain BUY with a higher TP of SGD1.34 Our channel checks show that Frencken is benefiting from strong orders from its semi-con customers, especially its European customers. We expect orders to increase by 30% from this customer in 1H25 and 2H25 will likely be dependent on orders from its American customer. As a result, we believe the outlook for 1H25 to be stronger than we initially expected and will likely benefit more if the highly anticipated semi-con recovery happens in 2H25. As a result, we raise our TP to SGD1.34 from SGD1.20, based on a blended 12x FY25/26E P/E instead of 12x FY25E to standardise our valuation methodology across semi-con SG names. Frencken remains our Top Pick in the Singapore tech sector.
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| UOB KAYHIAN | MAYBANK KIM ENG |
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Cathay Pacific Airways (293 HK) 2024: Results Slightly Miss Our Forecast But A Solid Beat Of Consensus’
Cathay’s 2024 core net profit of HK$8.9b (+27.6% yoy) beat consensus estimates by 11.4% but slightly missed ours at 96.2%. The positives from better-than-expected pax yields in 2H24 were offset by negatives from higher staff costs and weaker fuel efficiency. 2025 earnings should stay largely flattish yoy, with subdued fuel prices balancing cargo headwinds from US-China trade tensions. Pax and cargo yields are expected to normalise further in 2025. Maintain HOLD. Target price: HK$11.20.
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Yinson Holdings (YNS MK) FPSO Agogo: The ‘greenest’ FPSO made to-date
Maintain BUY with an unchanged TP of MYR4.78 We were able to set foot on Yinson’s “greenest” FPSO Agogo just before it set sail in early March. The earlier-than-expected delivery of this vessel is a testimony of Yinson’s capabilities. It also allowed Yinson to reap cost savings. We believe this achievement opens up opportunities for Yinson’s future FPSO wins. We like Yinson’s strong and proven track record, prospects and ESG initiatives. No changes to our earnings forecasts. Maintain BUY with an unchanged SOP-TP of MYR4.78.
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