buysellhold july.23

 

UOB KAYHIAN

UOB KAYHIAN

REITs – Singapore

Starting To Regain Lost Ground

 

S-REITs have had a negative correlation of 0.59 against the S&P 500 Index. Thus, SREITs could mean revert and register gains even as the S&P 500 falls over the next six months. Our preferred BUYs are CICT (Target: S$2.37) and LREIT (Target: S$0.72) for suburban retail, DCREIT (Target: US$0.88), KDCREIT (Target: S$2.55) and MINT (Target: S$2.70) for data centres, and PREIT (Target: S$4.85) for healthcare, which are relatively less affected by the impact from tariffs. Maintain OVERWEIGHT.

 

 

Read More ...

 

ComfortDelGro Corporation (CD SP)

New Entrant, More Competition

 

It was announced that Grab would enter the domestic street-hail segment as Singapore’s sixth taxi operator, increasing competition for incumbents such as CD. We expect a slight negative impact to CD as taxi utilisation rates would likely fall with GrabCab’s impending entry, compressing segmental margins. However, as CD is underpinned by strong earnings growth and a decent 2025 dividend yield of 5.8%, we maintain BUY with the same target price of S$1.76.

 

 

Read More ...

MAYBANK KIM ENG

MAYBANK KIM ENG

Singapore Strategy

Surviving Liberation Day

 

Trump Tariffs are bad, but not that bad

Singapore has not been spared from Liberation Day tariffs, but it is in a less bad position than the region. This may further reinforce its safe haven status. We see opportunities from themes such as supply chain relocations, China stimulus and domestic spending. Cash flow rich, secular themelinked sectors such as Industrials, Telcos, Land Transport, Healthcare, SMIDs should be relative beneficiaries. Higher rate cut risks could be a tailwind for REITs, especially those with domestic exposure. Reciprocally, banks may see some stress from tighter margins, but high capital returns visibility could provide some offset. Our Trump Tariff Winners: STE, SCI, RFMD, CD, CICT, FCT, ST, CSE, ISOTEAM, SE, GRAB.

 

 

Read More ...

 

 

Malaysia Banking

Of tariffs and banks

 

In favour of the domestic-centric banks

In the event of slower economic growth, our sensitivity analysis, which assumes a 1%-pt cut in loan growth, a 25bps cut in the OPR and a 20% increase in credit cost across the board, points to a fairly manageable 3- 7% impact on earnings, while dividend yields would still be attractive, ranging from 4% to 6%. Least impacted, earnings wise, would be the domestic-centric banks such as PBK, AMMB and HLBK, all of which are BUYs on our list.

 

 

Read More ...

 DBS VICKERS  

ST ENGINEERING
• Defence poised for upside surprise as surging international procurement meets years of groundwork in marketing, R&D and partnerships
• Rising urgency should accelerate Smart City adoption and lead to positive surprise relative to medium term targets
• Potential M&A provides additional torque, underpinned by strong execution track record and balance sheet capacity
• Historical valuation benchmarks no longer do justice to STE’s higher growth trajectory; notable PEG discount and earnings visibility justify TP raise to SGD7.50.

Read more...

 

  

 

You may also be interested in:


 

We have 1128 guests and no members online

rss_2 NextInsight - Latest News