*Maybank IBG Kopi-O (9 Feb 2022)*
Nikkei 27284.5 0.13%
Kospi 2746.5 0.05%
SSE 3452.6 0.67%
HSI 24329.5 -1.02%
TWSE 17966.6 0.37%
SET 1684.2 0.42%
JCI 6789.5 -0.23%
STI 3401.7 1.05%
KLCI 1530.1 -0.04%
*Maybank IBG Key Calls*
*Ascendas REIT - New Economy Growth Proxy*
AREIT achieved DPU growth of 2.4% YoY in 2H21, with FY21 DPU at +3.9% YoY, driven by stronger portfolio occupancy and rental reversion. Its fundamentals remain strong, backed by scale, rising DPU visibility, upside from acquisitions and/or redevelopments, and further overseas diversification. With SGD13.0b or 80% of AUM entrenched in new economy assets, AREIT remains the best S-REIT growth proxy. We see valuations as undemanding at 5.9% FY21 yield and 4% DPU CAGR for this large-cap liquid name.
*MY*
o The rebound in overnight US markets will lend support to the KLCI but trading will remain choppy amid the resurgence in Covid-19 infections as well as the fall in commodity prices. All eyes will also be monitoring the upcoming Malaysia GDP data later this week. Technically, we expect the benchmark index to range between 1,520pts and 1,550pts today, with supports at 1,500pts and 1,475pts.
o *YTL Power (YTLP MK)*: The proposed significantly-accretive disposal of Electranet brings to the fore the YTLP dichotomy – immensely valuable concessions (if crystallised) against depressed recent earnings. We believe risk-reward has turned favourable, with earnings possibly recovering upon the eventual commissioning of Attarat Power. Upgrade to BUY with an unchanged MYR0.70 TP.
o *Aemulus (AMLS MK)*: Reported a 200% YoY and 11% QoQ jump in 1QFY9/22 PATMI to MYR4.5m. The stellar 1QFY9/22 results stemmed mainly from a 62% YoY increase in revenue; a 10.7ppts expansion in PBT margin to 24.6% (1QFY9/21: 13.9%); and a lower effective tax rate of 0.8% (1QFY9/21: 5.6%). Demand for testers from the Far East region will be supported by the 5G wireless communication segment and other new vertical markets. Stock trades at 29x consensus FY9/22 EPS. It is sitting on a net cash of MYR63.9m at end-Dec 2021.
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