Maybank Kim Eng

Singapore banks have good dividend visibility, but non-performing loans pose an increasing risk: Maybank

SINGAPORE (Sept 12): Singapore banks seem to be a cut above the rest in Asean, offering some of the highest dividends and ranking among the cheapest in price-to-equity (PE) terms, bolstered by strong balance sheets. 

But a recent report from Maybank Kim Eng which uses artificial intelligence, has revealed that the biggest threat to the appeal of Singapore banks appears to overseas lending – which accounts for 63% of incremental loan growth for Singapore banks. In turn, this affects the banks’ non-performing loan (NPL) figures. 

Can AEM continue its record-breaking streak?

SINGAPORE (Aug 15): AEM Holdings, the provider of equipment systems solutions and manufacturing services, reported record high revenue and earnings for 2Q19.

Earnings for 2Q19 ended June hit an all-time high of $15.7 million, 65.4% higher than the $9.5 million the preceding year. Revenue also surged 34.8% to a high of $97.9 million, due largely to the Equipment Systems Solutions (ESS) business.

AEM says its stellar 2Q19 performance was the result of a major customer ordering more test handlers in anticipation of its own product launch roadmap.

FCT preferred for its resilient malls, strategic diversification and index inclusion plans

SINGAPORE (July 29): Frasers Centrepoint Trust (FCT) delivered a strong set of results in 3Q19, despite seeing a dip in DPU due to an enlarged unit base.

See: Frasers Centrepoint Trust 3Q19 DPU falls 1.7% to 3 cents

The 3Q19 results were supported by strong operational metrics, reflecting broad-based occupancy improvements and tenants’ sales growth.

AEM poised for system level testing; is likely M&A target: Maybank

SINGAPORE (June 19): Maybank KimEng is maintaining its "buy" call in AEM Holdings with an unchanged target price of $1.40.

Maybank says the roll-out of a 5G mobile network will see the design and production of increasingly complex and mission-critical chips.

To test these new chips efficiently, chipmakers will have to look to system level test (SLT) to complement conventional methods.

Brokers unanimously positive on NetLink NBN's outlook after a satisfying FY19

SINGAPORE (May 15): OCBC Investment Research, DBS Vickers Securities and Maybank Kim Eng are maintaining their “buy” calls on NetLink NBN Trust (NLT) with the respective price targets of 95 cents, 90 cents and 83 cents.

Likewise, Phillip Capital continues to rate the trust at “accumulate” at a 93-cent price target.

Manulife US REIT scores big with US$122 mil Centrepoint acquisition

SINGAPORE (May 3): Maybank Kim Eng and RHB Research are reiterating their “buy” calls on Manulife US REIT (MUST) with the respective target prices of US$1 and 96 US cents.

Both research houses are positive on the REIT’s US$122 million acquisition of Centrepointe I & II in Virginia, USA – a deal which is set to be DPU- and yield-accretive, and adds to the trust’s overall portfolio weighted average lease expiry (WALE).

CDL Hospitality Trusts remains top sector pick for RHB, Maybank despite a weak 1Q

SINGAPORE (May 2): RHB Research and Maybank Kim Eng are maintaining “buy” on CDL Hospitality Trusts (CDL HT) with respective price targets of $1.77 and $1.80, while OCBC Investment Research reiterates its “hold” call as it places its $1.56 fair value under review, pending further details.

Ascendas REIT poised to benefit from current rate environment, but yields may be tight

SINGAPORE (April 30): Maybank Kim Eng and OCBC Investment Research are maintaining their “buy” and “hold” calls on Ascendas REIT (AREIT) while raising their price target and fair value estimate to $3.20 and $2.74 from the previous $3.10 and $2.64, respectively.

This comes after the REIT manager declared a 4Q19 DPU of 4.1 cents, up 6.1% y-o-y on revenue growth and lower non-property expenses, and in line with both research houses’ expectations.

Analyst sentiments on Mapletree Logistics Trust turn lukewarm due to valuations

SINGAPORE (April 29): CGS-CIMB Research is downgrading its call on Mapletree Logistics Trust (MLT) from “add” to “hold” due to high valuations of 1.3 times price-to-book and a 5.4% yield, as well as the risk of a default from CWT.

The research house has raised its price target to $1.48 from $1.44 after tweaking forecasts to factor in MLT’s recent Japan divestments, on top of lower risk-free and terminal growth rates to account for a more dovish interest rate sentiment.

Maybank KE cuts Hi-P to 'sell' after share price run-up

SINGAPORE (April 9): Maybank Kim Eng is downgrading its call on Hi-P International to “sell” from “hold” previously with an unchanged price target of $1.22, which is based on 1.5 times FY19E price-to-book value.

This is because the research house now deems Hi-P as overvalued at 14 times FY19E P/E versus its global peers’ 10.5 times, and its own 1 SD above the three-year mean of 12.3 times.

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