Maybank Kim Eng Research

Can these Singapore tech stocks survive escalating US-China trade tensions?

SINGAPORE (June 12): Maybank Kim Eng Research is maintaining its “neutral” rating on the Singapore technology sector, amid risks that arise from escalating trade tensions between US and China.

“The escalation of the US-China trade war has clouded the earnings outlook for the Singapore technology universe,” says analyst Lai Gene Lih in a report on June 10.

Venture Corporation is now Maybank’s preferred pick in the sector.

The brokerage is upgrading Venture Corp to “buy” from “hold” previously, and keeping its target price unchanged at $19.74.

Valuetronics kept at 'buy' on compelling valuations following trade tension fears

SINGAPORE (June 12): Maybank Kim Eng Research is keeping its “buy” recommendation on Valuetronics with an unchanged target price of 99 cents – implying an upside of more than 50% from its current trading price.

A Hong Kong-based electronics manufacturing services provider with two facilities in China, Valuetronics has found itself caught in the middle of escalating tensions between US and China.

Since late-April, Valuetronics’ share price has fallen some 10%, in part due to the US-China trade war.

Frasers Hospitality Trust kept at 'buy' despite weakness Down Under

SINGAPORE (May 31): Maybank Kim Eng Research is keeping its “buy” call on Frasers Hospitality Trust (FHT) with an unchanged target price of 85 cents, following a slow 2Q19 where distribution per unit (DPU) fell 11.5% y-o-y in line with consensus estimates.

In 2Q19, FHT saw its gross revenue fall 7.6% to $34.6 million while net property income (NPI) was down 9.1% to $25.2 million.

The decline was mainly due to weaker performance at its portfolios in Australia, Malaysia and Japan.

Frasers Centrepoint Trust remains in favour amid equity fund raising on Waterway Point stake acquisition

SINGAPORE (May 21): Frasers Centrepoint Trust (FTC) is expected to add 19.8% to its share base from the issue of 184 million new units to raise funds amid its proposed acquisition of a 33.3% stake in Waterway Point.

But analysts say the move will strengthen FCT’s distribution per unit (DPU) growth profile.

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.

Analysts mostly bullish on Genting Singapore's $4.5 bil investment for RWS 2.0 as price plunges to 3-month low on fears

SINGAPORE (Apr 4): Analysts are generally positive on Genting Singapore (GENS) following the announcement of plans to invest $4.5 billion to renew and refresh Resorts World Sentosa (RWS).

In view of this investment, the government has agreed to extend the exclusivity period for the two casinos at RWS and Marina Bay Sands (MBS) to end-2030. MBS also committed to a $4.5 billion investment to expand its property.

Authorities add that no other casinos will be introduced during this period.

Sheng Siong kept at 'sell' as competitor ignites potential price war

SINGAPORE (Mar 28): Maybank Kim Eng Research its “sell” call on supermarket chain Sheng Siong Group (SSG) with an unchanged target price of 95 cents, after NTUC FairPrice said last week it would hold the prices of 100 housebrand products for 15 months up to end-June next year.

Around half of these 100 products already had their prices slashed before the announcement.

DBS is Maybank Kim Eng's top pick amid expectation of wider NIM in 2019

SINGAPORE (Mar 7): Maybank Kim Eng Research says DBS Bank is its top pick among local banks on the back of its strong low cost deposit franchise.

“Domestic banks, with lower loan to deposits (LD) ratios and higher mix of low cost deposits, should see net interest margins (NIMs) rise further,” says analyst Thilan Wickramasinghe in a report on Wednesday.

An airport REIT to finance Changi expansion?

SINGAPORE (Mar 6): Maybank Kim Eng Research says setting up an Airport REIT could be another way of financing Changi Airport’s expansion -- which includes a new Terminal 5 and a third runway -- costing “tens of billions of dollars”.

Such a REIT could also help revive what has been a moribund period for the Singapore Exchange. Last year, IPO proceeds raised amounted to US$512 million, down 85% from the previous year.

Singapore also ranked 7 in Asia ex-Japan in 2018 in terms of funds raised, far behind Hong Kong with $35 billion and even Vietnam with $2.6 billion.

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