Despite its hospitality segment continuing to face headwinds from the Covid-19 pandemic, CGS-CIMB analyst Lock Mun Yee has maintained her “add” rating on Frasers Property Limited (FPL) with an unchanged target price of $1.70. This was on the back of residential settlements staying on track for 1QFY2021 ending September and robust industrial and logistics occupancy. 

“The hospitality segment continued to face challenges with revenue per available room down 24.9-68.7% y-o-y across its geographic footprint,” writes Lock in a Feb 8 broker’s report. This is in part due to coronavirus mutations resulting in a global spike in cases, slowing down the recovery timeline of the travel and tourism industry. 

For now, FPL is actively planning regional and global campaigns to prepare for new travel corridors. It is also targeting domestic tourism, with new properties opening in China, Vietnam and malaysia. Management is also reviewing cost management measures. 

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