FRASERS LOGISTICS & INDUSTRIAL TRUST | BUY
JUNE 7 CLOSE: $1.07
TARGET PRICE: $1.12
OCBC Investment Research, June 7
Frasers Logistics & Industrial Trust (FLT) announced on Tuesday that it has proposed to acquire a portfolio of seven fully leased or pre-committed industrial properties in Australia from its sponsor Frasers Centrepoint Limited (FCL).
We are positive on this transaction as we believe the proposed acquisition carries a number of positive attributes, such as having a long weighted average lease expiry and 100 per cent occupancy.
We expect management to utilise a capital structure which will be distribution per unit (DPU) accretive to unitholders.
If we assume a debt-to-equity funding ratio of 55-45, pro forma DPU is expected to increase by 0.9 per cent. Reiterate "buy" and $1.12 fair value estimate.
YOMA STRATEGIC | BUY
JUNE 7 CLOSE: $0.585
TARGET PRICE: $0.78
RHB Research, June 6
We organised a recent investor roadshow with Yoma Strategic following the release of its full-year results.
The key takeaway was the rapid scaling up of the non-real estate businesses, which now comprise 47 per cent of the group's topline.
Yoma has added a new product line in construction equipment to its auto platform, and plans to open another 10 KFC stores in the current financial year.
Maintain "buy" rating with unchanged sum of parts-based target price of $0.78.
Catalysts for the stock price would be a recovering real estate market and further non-core asset divestments.
CAPITALAND | BUY
JUNE 7 CLOSE: $3.58
TARGET PRICE: $4.33
DBS Group Research, June 5
CapitaLand reported the following asset reconstitution strategy in China: Divestment of Innov Tower and investment in Guozheng Centre.
This is the hallmark of CapitaLand's portfolio reconstitution strategy, realising value from more mature assets (Innov Tower) and redeploying proceeds to properties with further upside potential (Guozheng Centre) when the property is fully leased and expect the group to lock in further with potential capital gains when prices stabilise in the medium term.
We expect further momentum in terms of CapitaLand's capital deployment in the key cities of China and Singapore, which we believe provides fundamental support to the persistent buoyancy of the share price.
We have a "buy" on CapitaLand, with a target price of $4.33 that is based on a 10 per cent discount to revised net asset value.
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