#3 Aoxin Q&M Dental Group
UOB Kay Hian has
maintained its Buy rating on the company with a target price of $0.37.
The recent proposed listing on Nasdaq is going to unlock lots of opportunities and value for the company.
"Our basecase estimate using 22x 2021F PE for Acumen, based on Q&M Dental’s historical mean PE, will unlock value of S$216m (S$0.42/share) for Aoxin.
Expects to reap many benefits from listing in one of the most prestigious platforms in the world. The reasons for choosing NASDAQ is because it is one of the most well-known listing platforms in the world.
Nasdaq is known for its technology, innovation, and it is home to digital, biotechnology, and other cutting edge companies. In addition, Acumen believes that having a listing status in a leading global capital market of the status of NASDAQ is beneficial as this provides Acumen with ready access to the world's largest economy, an expanded investor base and additional sources of financing.
The proposed NASDAQ listing is also an excellent opportunity for ADPL to enhance its corporate profile as it seeks to further expand its business."
>> Read more about the company here.
#4 United Overseas Bank
CGS CIMB has maintained its
Add rating on the stock with a target price of $33.50.
The recent acquisition of Citibank's assets are going to boost UOB's top and bottom line.
"UOB announced that it w ill be acquiring Citigroup’s consumer businesses in Indonesia, Malaysia, Thailand and Vietnam. The transaction is valued at 1.2x P/BV, with the acquisition of the TH business driving this.
Although slightly higher than the average 0.9x FY22F P/BV valuation of TH banks, we think the premium is justified given the boost to UOB’s market leadership in these countries.
Synergies from the combination of UOB’s and Citigroup’s assets are expected to result in S$1bn in incremental annual income w hen integration is completed (on a pro-forma basis), which w ill drive >13% ROE by 2026 (from c.10% currently, c.2% pts of the uplift is expected to stem from rising interest rates), as income from these 4 markets rise 1.4x."
>> Read more about the company here.
#5 Wilmar International
UOB Kayhian has
maintained its Buy rating on the stock and with its target price at $6.00.
Strong performance from its core assets is one of the strongest reason behind this valuation.
"Strong performance from plantation and sugar milling. The plantation and sugar milling divison, which is the upstream operation for Wilmar, is expected to see significant earnings increase yoy and hoh in 2H22.
For 1H21, this division only contributed about 13% of 1H21 profit before tax (PBT), but this is expected to increase to 22-25% of 2H21 PBT on the back of strong selling prices. CPO and sugar price increased by 35% and 26% yoy respectively in 2021.
2021 is likely to best earnings year for this division since 2016."
>> Read more about the company here.
#6 Keppel Corp
UOB Kayhian has maintained
its BUY rating on the company with a target price of $6.94.
Stronger than expected results and the opportunity for a bid dividend payday are driving the sentiments.
"Keppel Corp (KEP) reported stronger-than-expected 2021 revenue which rose 31% yoy to S$8.6b generating a net profit of $1.02b vs a loss in 2020.
Importantly, KEP reported sequentially better profitability as its 2H21 net margin doubled to 14.6% vs 1H21. These robust results were attributable gains from divestments and asset sales, as well as stronger operating performances from its property, connectivity and asset management businesses.
Since Oct 20, KEP has divested around S$2.9b and is on track to exceed its S$5b target by 2023. As a result of this cash inflow, the company declared a 2H21 dividend of S$0.21 resulting in a total dividend of S$0.33 for 2021, which implies a yield of 6.2% using today's closing share price.
We have maintained our forecast 40% dividend payout ratio for 2022-24."
>> Read more about the company here.
#7 Mapletree Industrial Trust
UOB Kay Hian has
maintained its Buy rating on the company with a target price of $3.72.
Accelerated growth driven by acquisitions of data centres and stable occupancies rate make the company attractive.
"Gross revenue and NPI grew 31.3% and 24.1% yoy respectively in 3QFY22 driven by: a) the acquisition of 29 US
data centres completed on 22 Jul 21, and b) the acquisition of 8011 Villa Park Drive in Richmond, Virginia completed on 12 Mar 21.
Portfolio occupancy was relatively unchanged at 93.6% in 3QFY22. Occupancy for its Singapore portfolio edged marginally higher by 0.1ppt qoq to 93.7%, driven by Business Park Buildings (+0.4ppt qoq to 83%) and Stack-up/Ramp-up Buildings (+1.2ppt qoq to 97.6%).
Occupancy for data centres moderated 0.6ppt qoq as the 29 newly-acquired data centres in the US have lower average occupancy of 87.4%."
>> Read more about the company here.
