#3 Prime US REIT
Maybank Kim Eng has
maintained its BUY rating on the company with a target price of $1.10.
The positive sentiment is because "PRIME delivered a stable 1Q21, and like its peers, saw strong leasing
momentum, albeit mostly from renewals. Improving market fundamentals should support demand recovery, with occupancies in our view, likely to bottom out in 2H21.
DPU visibility is high, from its 4.3-year WALE, strong tenancies, and +2.0% pa growth from its AUM, currently under-rented by 6.5%. We see catalysts from improving leasing activity into 2021, and upside from acquisitions, backed by its strong balance sheet."
Another important factor is its "strong balance sheet, which scores well against peers.
Its leverage remains low at 33.8% (from 33.5% at end-Dec 2020), with USD290m debt headroom (at 45% limit). PRIME ranks well against its US office S-REIT peers on operational metrics and capital management, with low near-term leasing and refinancing risks."
>> Read more about the company here.
#4 Sembcorb Industries Ltd
UOB Kay Hian has maintained its rating on the company with a
BUY rating on the stock with a target price of $2.59.
The conviction of the analysts comes from the fact that "SCI’s Investor Day profiled a long-expected move towards a greener future, focusing its business growth on renewable energy and sustainable urban development as well as a pledge to deliver net-zero carbon emissions by 2050.
While the results will take time, we view SCI’s move positively and it could lead to the market applying an “ESG premium” to the stock. "
>> Read more about the company here.
#5 Boustead Projects Limited
CGS CIMB has
maintained a rating of ADD and with its target price at $1.40.
The remarkable future of the company is due to a "strong balance sheet to chart the next leg of growth.
With the capital recycling, BP has a strong net cash position of S$296m as of endFY21F. Together with its network of strategic platforms and partnerships, we believe BP will be able to accelerate its international expansion plans as its next leg of growth.
A target market could be Vietnam, where BP recently signed agreements to acquire a 49% stake of 16 ready-built factories in Bac Ninh Province"
>> Read more about the company here.
#6 Far East Hospitality Trust
UOB Kay Hian has
maintained its BUY rating on the company with a target price of $0.71.
The main driver of the sentiment is mainly because of " the increase in infections due to the new variants of COVID-19 has resulted in increased demand from the government for SHN facilities and public hospitals for accommodation for healthcare workers.
Public hospitals have bulk-booked hotel rooms to provide accommodation for their healthcare workers. Many healthcare workers prefer to stay at hotels as a precautionary measure to ensure they do not
unwittingly infect their children and vulnerable parents with COVID-19."
>> Read more about the company here.
#7 Mapletree Industrial Trust
Maybank Kim Eng has
maintained its BUY rating on the company with a target price of $3.25.
The extremely positive sentiment is because of the "adding to US data centres.
MINT has picked up its pace on acquisitions with its latest USD1.32b US data centre deal. The investment, at an initial 5.1% NPI yield is DPU and NAV accretive.
It should boost the segment’s contribution from c.41% to c.54% of its AUM, while strengthening DPU visibility from a longer 4.6-year WALE (from 4.0 years).
With its portfolio recalibration plans well underway, we see further DPU-accretive deals, as management advances diversification efforts to deepen data centre concentration to 50-67% of\ AUM"
>> Read more about the company here.
