#3 DBS Group
Maybank Kim Eng has
maintained its Buy rating on the company with a target price of $37.03.
Regional recovery and new investments of the bank are the impetus of the rating.
"DBS’ 9M21 PAT was ahead of MKE and Street, supported by provision reversals. The Group continues to have excess reserves that could potentially surprise earnings on the upside going forward.
Operationally, we expect loans & fees – especially wealth, transaction banking and credit cards – to see rising momentum. Increasing investments in digital, AI, retail wealth as well as India and China geographically could create new pathways for higher ROEs in the medium term, in our view"
>> Read more about the company here.
#4 Propnex
UOB Kay Hian has maintained a Buy
rating on the stock with a target price of $2.17.
Strong results coupled with positive outlook of the management were some reasons why the analyst has a good rating on the company
"Propnex reported a strong set of 3Q21 numbers with revenue doubling yoy to S$234m while net profit more than doubled to yoy to S$15.5m. This was the result of a higher number of transactions completed in 3Q21 following improvements in Singapore’s COVID-19 situation and an improving economy.
In particular, we highlight that the strong results were generated by the company’s three key market segments, ie new launches, private resale and HDB resale, which all saw strong yoy growths. Its 9M21 net profit of S$49.8m accounted for 77% of our full-year 2021 forecasts, which we deem as largely in line with our expectations.
The company highlighted its confidence in being able to maintain a revenue base of S$200m per quarter going forwards given its high market share and material advantage in numbers in terms of property agents.
Propnex stated that with >50% of the HDB resale market share, it will be able to continue building on this as a driver of its earnings base. In addition, the company is targeting to increase its total number
of agents to 12,000 by 2023."
>> Read more about the company here.
#5 Hongkong Land Holdings Ltd
CGS CIMB has
maintained its ADD rating on the stock and with its target price at $6.30.
Share repurchase program and the potential uplift of its Hongkong portfolio drove the positive view of the analyst.
"As of end-1H21, HKL’s Central office vacancy was 6.4%, below 7.4% for overall Central office. Even though negative rental reversions may continue in 2H21F (average expiring rent is c.13% higher than its latest average monthly net rent), lower rents make its portfolio competitive for retention or acquisition of key tenants.
We believe its vacancy reached a short-term peak at end-1H21 and will moderate in 4Q21F and 1H22F, as the HKSAR Government is planning to reopen borders with mainland China as local Covid19 cases have subsided.
We lift our FY21-23F EPS by 0.2-1.4% to factor in its smaller number of shares outstanding after the share repurchase."
>> Read more about the company here.
#6 Prime US REIT
Maybank Kim Eng has maintained
its BUY rating on the company with a target price of $1.10.
Prime US REIT has positive leasing momentum, and have experienced rental reversion trend which bodes well for its stock price.
"It leased c.187k sf in 3Q21 at +19.2% rental reversion, up from c.52k sf in 2Q21 at +10.5%, and c.80k sf in 1Q21 at +8.5%. Most were renewals, while 17.5% were from new leases.
Half of leasing activity was attributed to AGG (at 3.0% of cash rental income), as it extended its lease at 17th Street till 2035, at +25% reversion, but downsized its footprint from c.122k sf to c.98k sf. Expiring leases in 4Q/FY22 are low at c.2-10% with nine (of 14) properties at sub-1%.
With in-place rents at Reston Square 14.7% above passing rents, negative rental reversions for its 2.6% expiries are likely."
>> Read more about the company here.
#7 Oversea-Chinese Banking Corp
UOB Kay Hian has
upgraded its Buy rating on the company with a target price of $15.35.
Improvement in the general environment coupled with the increase in earnings of its operations and subsidiaries are driving OCBC's bottom line thus better stock price representation.
"Benefitting from recoveries and upgrades. NPL ratio was unchanged at 1.5% (rise in new NPL formation was offset by higher recoveries, upgrades and write-offs). New NPL formation was largely due to downgrades of secured consumer loans in Malaysia.
Specific provisions of S$185m were mainly for corporate and consumer loans in Malaysia and Indonesia. Credit costs moderated to 21bp in 3Q21, receding from 30bp in 2Q21.
Pick-up in loan and deposit growth. Loans expanded 6% yoy and 4% qoq, led by Singapore (+4.5% qoq) and Greater China (+4.3% qoq).
The pick-up was broad-based across corporate and consumer loans. Deposits grew 8% yoy, driven by expansion of 13% yoy for current and savings accounts (CASA) deposits"
>> Read more about the company here.