*Maybank IBG Kopi-O (18 Feb 2022)*
Nikkei 27232.9 -0.83%
Kospi 2744.1 0.53%
SSE 3468.0 0.06%
HSI 24792.8 0.30%
TWSE 18268.6 0.20%
SET 1711.6 0.60%
JCI 6835.1 -0.22%
STI 3441.6 0.07%
KLCI 1605.0 0.11%
*Maybank IBG Key Calls*
*RL Commercial REIT - Par for the course*
Maintain BUY and TP of PHP8.10. During our recently concluded Philippine Corporate Day, RCR’s management shared that its portfolio currently has an occupancy rate of 99% and that its properties are able to command premium rents, with 3-5% escalation rates embedded into lease contracts. In our view, risks are skewed to the upside for RCR with the robust pipeline of potential infusions from RLC. RCR’s management noted it can infuse 1-2 properties via share swap based on its current balance sheet.
*MY*
o After rising for seven consecutive trading days, expect profit taking to intensify as investors may become more risk-averse ahead of the weekend break. Meanwhile, the selloff in overnight Wall Street as well as the falling oil price will also weigh on sentiment. Technically, we expect the KLCI to range between 1,580pts and 1,630pts today, with supports at 1,570 and 1,530.
o *Datasonic (DSON MK)*: Its wholly-owned subsidiary Datasonic Technologies S/B was awarded a MYR50m contract by the Ministry of Home Affairs (KDN) to supply MyKad, MyTentera, MyPOCA raw cards and consumables to the National Registration Department for a 12-month period. DSON is also supplying Malaysian passport chips, Malaysian passport documents and polycarbonate biodata pages to KDN. These contracts have a remaining value of approximately MYR280m. Stock trades at 18.1x consensus FY3/23 EPS.
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