April 9

[SG] 7 Interesting Stock Ideas [April 2021]

March has been a volatile month for stocks across the world, mainly driven by the sell down in 10 years USA treasury bonds.

In addition, there is also the expectation for increase in inflation, thereby a possible rate increment by the FED.

As an investor, we have to position our stock portfolios for all circumstances.

Below are 7 interesting stocks that you can take note for the month of April (including the analysts’ snippets).

#1 CapitaLand Limited

Phillips Capital has maintained its BUY rating  on the stock with a target price of $4.38.

This is at the back of  the “decoupling its development operations from its stable fund management and mature investment property portfolio, investors will benefit from the immediate realisation of the development assets at the 0.95x BV offered, compared to CAPL’s historical 20-30% trading discounts to NAV. ”

Moreover “the scheme of arrangement will allow the group to sharpen its focus on asset-light and
capital-efficient businesses and match each business’ risk-return profile with the appropriate
capital sources and capital structures, in our view.

CLIM will be positioned as an asset-light, growth business while capital-intensive and longer-gestation development projects and assets, which are usually valued at discounts to RNAV, will be privatised.”

>> Read more about the company here.

#2 Pan-United Corporation Limited

Phillips Capital has initiated a BUY rating of the company with a target price of $0.40.

One main factor is because of the recover of the construction sector. “Singapore’s Building and Construction Authority (BCA) predicts that 2021 construction demand will recover to S$23- 28bn.

RMC volumes rebounded from almost 100% below their 10-year average at the start of 2020 to 14% below as at December 2020.

The recovery was spearheaded by public residential and civil engineering projects. We are expecting Pan United to benefit, as it is the market leader with a 40% share in the past 5-6 years.”

>> Read more about the company here.

#3 Mapletree Industrial Trust

UOB KAY HIAN has maintained its BUY rating on the company with a target price of $3.50.

The positive sentiments are a result of “further expansion in data centres. Mapletree Industrial Trust (MINT) has completed the acquisition of a data centre and office located at Richmond, Virginia in the US for US$207.8m (after upfront discount) in Mar 21”.

The above acquisition is “DPU accretive. The acquisition was fully funded by debt. Management estimates that the transaction is accretive to pro forma FY20 DPU by 2.0%.”

This is a really strong boost to the bottom line and future prospects of the company.

>> Read more about the company here.

#4 Hong Leong Asia

CGS CIMB has initiated its coverage on the company with a BUY rating on the stock with a target price of $1.18.

The positivity of the analysts comes from the fact that ” Singapore building materials segment making a major comeback.

As a market leader in Singapore’s building materials industry, HLA is benefiting from the resumption of construction activities in Singapore post Covid-19 lockdowns.

Management notes that HLA’s ready-mixed concrete (RMC) volume output has recovered to c.80-85% of pre-Covid levels in Feb 2020, while its precast concrete plants are currently running at optimal utilisation rate.”

>> Read more about the company here.

#5 CSE Global

UOB Kay Hian has maintained a rating of BUY and with its target price at $0.68.

The conviction of the analyst was because of the ” its oil and gas segment could be turning a corner
with the rise in oil prices. Its order intake from infrastructure and mining grew 22% yoy in 2020 despite COVID-19.”

Further from the recovery of the Oil and Gas, “Dividend yield is attractive at 5.1%.

We expect the group to maintain its full-year dividend at 2.75 S cents/share for 2021, translating into an above average dividend yield of 5.1% vs FSSTI’s 3.6%.”

>> Read more about the company here.

#6 SPH REIT

CGS CIMB has maintained its ADD rating on the company with a target price of $1.06.

The main driver of the sentiment is mainly because of  stable operating metrics.

The Rail Mall and The Figtree’s occupancy remained stable qoq at 99-100%. Despite Covid-19, Clementi Mall and Westfield Marion saw occupancy improve by 0.4% pts and 0.6% pts qoq to 100% and 97.9%, respectively.”

Another critical point is because of the “stronger revenue, mainly driven by acquisition

The stronger results were mainly driven by the full-year acquisition of Westfield Marion (completed in Dec 2019) vs. 3-months income contribution last year.

This, together with the better performance from The Rail Mall (+10.3% yoy) and Figtree (+4.6% yoy), helped to offset the weaker revenue from Paragon (-8% yoy) and The Clementi Mall (-3.1% yoy).”

>> Read more about the company here.

#7 Japfa Ltd

CGS CIMB has maintained its ADD rating on the company with a target price of $1.18.

One key driver of the sentiment was because of the “Continued government intervention, which is good for Indo poultry prices.

The Indonesian government has proposed the third culling exercise of 2021, to run from 7 Mar to 10 Apr, this time of hatching eggs (HE) as they are still seeing surplus poultry supply”

Also, “China raw milk prices still climbing. According to CEIC, China’s end-Mar 21 raw milk prices rose c.15% yoy as there is still a shortfall in supply, with downstream China milk producers continually upgrading their product portfolios as the Covid-19 pandemic has stimulated public awareness of improved immunity from a healthy high protein diet and as China’s nationwide herd sizes have not increased in the past 2-3 years.”

>> Read more about the company here.

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Tags

capitaland limited, cse global, hong leong asia, japfa ltd, mapletree industrial trust, pan-united corporation, SGX, sph reit


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