#3 Fotress Minerals Ltd
Phillips Capital has
maintained its BUY rating on the company with a target price of $0.64.
The main driving factor is because of the "4QFY21 results beat, with FY21 revenue and PATMI at 122%/116% of our forecasts. Volume sales growth of 66.7% YoY in 4QFY21 exceeded our +12.8%. Gross margin of 78.6% and ASP of US$120.70/DMT also beat our forecasts of 74.3% and US$96.00/DMT.
4QFY21 PATMI tripled YoY to US$6mn from higher selling prices and an 18% decline in unit production costs."
One main growth factor is the "demand for iron ore. According to the World Steel Association, global crude steel production increased by 10.0% to 486.9mn tonnes in the first three months of this year.
This spurred continued growth in demand for iron ores. World Steel forecasts that steel demand will grow by 5.8% in 2021 to 1.874bn tonnes, after dipping by 0.2% in 2020."
>> Read more about the company here.
#4 ARA LOGOS Logistics Trust
CGS CIMB has maintained its rating on the company with a
ADD rating on the stock with a target price of $0.814.
The positivity of the analysts comes from the fact that "operating metrics improved.
ALOG’s portfolio occupancy improved further from 98.5% in FY20 to 99.1% in 1Q21. ALOG continued to deliver positive rental reversion of +0.9% in 1Q21.
It secured 601,900 sq ft of leases (75.8% of it were renewals and the remaining were new leases) in 1Q20. It has 23% of remaining leases (in terms of gross rental income) up for renewal in FY21. "
>> Read more about the company here.
#5 Yangzijiang Ship Building
UOB Kay Hian has
maintained a rating of BUY and with its target price at $1.76.
The conviction of the analyst was because of the " positive development. Yangzijiang Shipbuilding
(YZJ) announced on 19 Apr 21 that it had entered into shipbuilding contracts for 15 vessels, with a total contract value of US$0.97b. Of the 15 vessels.
The company continues to garner orders for higher-margin containerships with eight of them
being containerships (six units of 15,000TEU containerships and two smaller units of 2,400TEU containerships)"
>> Read more about the company here.
#6 ESR REIT
CGS CIMB has
maintained its ADD rating on the company with a target price of $0.494.
The main driver of the sentiment is mainly because of "stable operating metrics.
Portfolio occupancy rate remained stable at 90.8% vs 91% the previous quarter while retention rate was at 87% vs. 85%. 16.9% of the portfolio leases by rental income are expiring in FY21. Out of these 16.9% expiring leases, c.28.1% have been renewed ahead of time.
Rental collection for 1QFY21 was healthy at 97.5%, in line with pre-pandemic levels. 1QFY21 rental reversions declined 5%, mainly due to renewals of certain large tenants in the business park segment. "
>> Read more about the company here.
#7 Aztec Global Ltd
CGS CIMB has
initiated its ADD rating on the company with a target price of $1.91.
One key driver of the sentiment was because it is in the "top 10 best smart security camera in US.
Aztech Global Ltd (AZTECH) is an electronics manufacturing service provider to blue chip brand owners, primarily for their Internet-of-Things (IoT) and data communication products. Smart security cameras manufactured by AZTECH was voted among the top ten best smart security cameras for 2021 according to Safewise.com.
With the global IoT market set to deliver a 20.8% CAGR to reach US$425.2bn by 2023F according to Frost &
Sullivan, we believe decreasing average prices of IoT sensors will further accelerate adoption rates.
IoT-related revenue accounted for c.88% of AZTECH’s FY20 revenue and we believe should drive future net profit growth, given its higher margin profile."
Moreover, Aztec has "new contracts win and completing the smart home value chain. As at end-1Q21, AZTECH has secured 11 new customers and projects, of which they are the sole supplier to two new lines of products of Customer A. Management expects to see contributions from new contract wins to come in FY22F."
>> Read more about the company here.
