DBS Group Research

DBS optimistic on US office REITs despite trade war fears

SINGAPORE (June 17): DBS Group Research remains positive on the rental outlook for US office REITs, despite growth concerns on the back of ongoing trade tensions.

“Recent discussions with property consultants reaffirmed healthy demand for office space,” says lead analyst Mervin Song in a report on Monday, following site visits to Keppel-KBS US REIT’s (KORE) and Manulife US REIT’s (MUST) properties in the US.

Yoma well placed to tap into Myanmar's potential economic growth, says DBS

SINGAPORE (June 4): DBS Group Research believes Yoma Strategic Holdings is well placed to tap into Myanmar’s potential economic turnaround, with its diversified portfolio in the property, consumer and automotive sectors.

DBS is keeping its “buy” recommendation on Yoma with an unchanged target price of 40 cents, based on a 60% discount to RNAV.

Yoma’s real estate business remains its core EBITDA contributor, accounting for 96% of core EBITDA in FY19, excluding fair value gains.

Yanlord downgraded by DBS amid continued sluggish presales performance

SINGAPORE (May 24): DBS Group Research is downgrading Yanlord Land Group to “hold” with a lower target price of $1.47, cutting its recommendation for the property developer from “buy” with a target price at $1.62 previously.

This comes as DBS slashes Yanlord’s earnings estimates for FY19F and FY20F by 30% and 9% respectively. This translates to price-to-earnings (PE) ratio valuations of 6.0 times for FY19F and 5.8% for FY20F, which the brokerage deems “no longer attractive”.

Solid fundamentals, ample new order opportunities keep Silverlake at 'buy'

SINGAPORE (May 24): DBS Vickers Securities is maintaining “buy” on Silverlake Axis while raising its target price on the stock by 1 cent to $0.63, which is derived from the peer average of 21 times FY19F P/E based on the group’s FY Jun 20F earnings after assuming slightly higher gross margins.

This comes post the group’s latest release of its 3Q19 and 9M19 results, which saw key segments registering revenue growth with 9M19 revenue and net profit jumping 23% and 82%, respectively.

Regionalisation, digitalisation key to UOB's growth, analysts say

SINGAPORE (May 23): Analysts believe United Overseas Bank (UOB) will leverage technology as well as efforts to spread its wings across the region in order to ride out current macroeconomic volatilities.

“[UOB’s] key differentiator remains in their Asean footprint across Malaysia, Indonesia, Myanmar, Vietnam, particularly being the only Singapore bank with a local Thailand presence,” says DBS Group Research analyst Lim Rui Wen in a flash note following UOB’s Corporate Day 2019 on May 15.

ST Engineering poised to ride on strong orderbook, analysts say

SINGAPORE (May 17): Analysts believe ST Engineering (STE) is poised to power ahead with its growth story this year, on the back of a record high orderbook that is likely to drive valuations.

And the optimism is unanimous: Analysts from all 15 brokerages covering the counter agree that STE is a “buy”.

“With a record $14.1 billion orderbook at the end of 1Q19, STE’s earnings growth potential looks exciting once again after a few tepid years,” says Suvro Sarkar, an analyst at DBS Group Research.

Analysts keeping spirits up on ThaiBev despite 2Q earnings decline

SINGAPORE (May 13): Analysts are keeping largely upbeat on Thai Beverage (ThaiBev), despite a 12.2% drop in 2Q earnings to THB 5.79 billion ($250 million) on the back of lower net profit from its spirits and food businesses.

In addition, net profit from F&N/Frasers Property was down 44% to THB 465 million, from THB 828 million a year ago.

See: ThaiBev 2Q earnings fall 12% to $250 mil due to poorer spirits and food businesses

Analysts temper optimism over Genting Singapore amid near-term headwinds

SINGAPORE (May 10): Analysts are lowering their forecasts on Genting Singapore (GENS) amid short-term pressures expected from lower gaming revenues and higher capex for the redevelopment of Resorts World Sentosa (RWS).

This comes after GENS after market close on Thursday announced a 5% drop in earnings for the 1Q19 ended March to $205.5 million, from $217.2 million a year ago.

Earnings per share (EPS) fell 6% to 1.70 cents for 1Q19, from 1.80 cents a year ago.

Total 1Q19 revenue was 5% lower at $640.4 million, led by an 8% decline in gaming revenue.

Strong start to FY19 keeps Manulife US REIT at 'buy'

SINGAPORE (Apr 26): Analysts are keeping their “buy” calls on Manulife US Real Estate Investment Trust (Manulife US REIT), after the group reported a strong start to the year.

Manulife US REIT, or MUST, saw its DPU climb to 1.51 US cents for the 1Q19 ended March, 22.8% higher than the 1.23 US cents DPU declared the same quarter a year ago.

1Q19 gross revenue rose 28.5% to US$40 million ($54.5 million) on the back of revenue contribution from Penn and Phipps properties acquired in June 2018, while net property income grew 27.7% to US$25.1 million.

Analysts remain positive on AA REIT for attractive yields despite headwinds

SINGAPORE (Apr 25): Despite negative reversions likely to persist in the near term, analysts are positive on AIMS APAC REIT (AA REIT) on the back of expected distribution per unit (DPU) yields of 7.2% to 7.3% over FY20-21F.

Both Maybank Kim Eng Research and DBS Group Research are keeping their “buy” calls on AIMS APAC REIT (AA REIT), with a similar target price of $1.50.

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