broker's call

Ixom boosts Keppel Infra Trust's 3Q; Basslink drama not likely to have any financial effect, says DBS

SINGAPORE (Oct 18): DBS Group Research is reiterating its “buy” recommendation on Keppel Infrastructure Trust (KIT) with a target price of 58 cents.

This came on the back of the trust announcing that its 3Q19 DPU has remained flat y-o-y at 93 cents.

Distributable cash flow for the quarter came in at $55.7 million, a 61% y-o-y increase over the corresponding period.

SPH REIT in need of more accretive acquisitions, analysts say

SINGAPORE (Oct 14): SPH REIT saw its earnings for the FY19 ended August boosted by its two acquisitions in FY18 – The Rail Mall and Figtree Grove Shopping Centre. But analysts say this might not be enough for the REIT to earn a re-rating.

Following the release of its FY19 results on Oct 10, analysts from three brokerages – Maybank Kim Eng Research, OCBC Investment Research, and CGS-CIMB Research – are all keeping their “hold” recommendations on SPH REIT.

ST Engineering expected to soar above peers with latest acquisitions

SINGAPORE (Oct 14): Analysts are bullish on ST Engineering on the back of future trends of its satcom business and recent acquisitions, which are expected to contribute positively to this segment’s growth.

To recap, the group on Sept 17 announced that its US subsidiary iDirect Government has acquired 100% ownership in Glowlink Communications Technology for a consideration of US$20 million ($28 million).

A better 2H expected for Wilmar but uncertainties still loom

SINGAPORE (Oct 9): Maybank Kim Eng is keeping its “hold” recommendation on agribusiness giant Wilmar International with a target price of $3.89.

Just when the worst was thought to be over for the group, China introduced a new policy that allows the imports of Argentinian soybean meal.

See: 3 reasons why the worst could be over for Wilmar

Frasers Centrepoint Trust kept at 'buy' by DBS as it tightens its grip on PGIM

SINGAPORE (Oct 2): Frasers Centrepoint Trust (FCT) on Sept 30 increased its stake in PGIM Real Estate Asiaretail Fund Limited to 24.82% from 21.13% previously.

Meanwhile, Frasers Property Limited (FPL) has also increased its stake in the fund to 63.11% from 53.7%.

This brings the total combined ownership of FCT and FPL to 87.93%.

The increase in stake was due to a redemption of 69,714 shares by the fund.

Following this, DBS Group Research is keeping its “buy” call on FCT with a target price of $2.95.

New Tsui Wah outlet opening leaves Jumbo at 'hold'

SINGAPORE (Sept 27): UOB Kay Hian is keeping its “hold” recommendation on Jumbo with a target price of 37 cents and an entry price of 33 cents, following the opening of Jumbo’s second Tsui Wah outlet in Singapore.

See: Jumbo opens second Tsui Wah outlet in Singapore

CGS-CIMB starts Boustead on 'add' as it fires on all cylinders

SINGAPORE (Sept 23): CGS-CIMB Research is initiating coverage on Boustead Singapore with an “add” recommendation and a target price of $1.00 – representing an upside of more than 36%.

In an initiation report on Friday, lead analyst Ong Khang Chuen notes that the group’s real estate and energy-related engineering order book backlog is currently at a five-year high, while its geospatial segment continues to expand steadily.

In FY20, Boustead’s energy-related engineering segment has secured $161 million worth of contracts to-date, compared to $89 million secured in FY19.

Fu Yu's cost saving and growth initiatives keep it at 'buy': UOB

SINGAPORE (Sept 16): UOB Kay Hian is keeping its “buy” call on Fu Yu Corporation with a target price of 28.5 cents, as the group is putting in efforts to optimise its operations.

In fact, the group has launched three initiatives that will lead to cost savings and growth.

The first initiative is the liquidation of a loss-making joint venture (JV). It started with the voluntary liquidation of its 40%-owned Berry Plastics in Malaysia in July.

Sembcorp's green energy business deeply undervalued: DBS

SINGAPORE (Sept 12): DBS Group Research is maintaining its “buy” recommendation on Sembcorp Industries (SCI) with a target price of $3.20.

In a Sept 12 report, analyst Ho Pei Hwa says, “SCI offers a unique value proposition as a defensive utilities business, and as a proxy to ride the cyclical O&M recovery.”

UOL's Avenue South Residence weekend performance shows potential of GSW

SINGAPORE (Sept 10): The launch of Avenue South Residence over the weekend saw 276 out of 300 units being sold, or 26% of the 1,074 units in the residential project.

Avenue South Residence is the first major residential project in Singapore’s Greater Southern Waterfront, a government plan to inject more job opportunities and a lived-in work population within the precinct.

The apartment units are spread across two 56-storey towers and five conserved four-storey apartment blocks.

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