Comprehensive Analysis of Listed Companies by Lim & Tan Securities – January 17, 2025

In its latest report dated January 17, 2025, Lim & Tan Securities provides an in-depth analysis of several listed companies, highlighting their financial performance, strategic moves, and future outlook. This article delves into the details of each company covered, offering insights and recommendations for investors.

Mapletree Logistics Trust (MLT)

Mapletree Logistics Trust (MLT), trading at S\$1.27, has taken a strategic step by entering a Purchase Agreement for the divestment of its property at 8 Tuas View Square in Singapore. The sale price of S\$11.18 million is 39.8% above the latest valuation of S\$8 million as of November 2024. This divestment aligns with the Manager’s efforts to rejuvenate the portfolio by disposing of non-core assets and redirecting capital towards high-specification, modern logistics facilities with higher growth potential.

The property, completed in May 2002, is a three-storey cargo lift warehouse and factory building with an ancillary office, boasting a net lettable area of approximately 4,405 square meters. The divestment is expected to be completed by Q1 FY25/26 and will not materially impact MLT’s net asset value or net property income.

Currently, MLT manages 186 properties across Singapore, Australia, China, Hong Kong, India, and other locations, with assets under management of S\$13.4 billion. At its current price, MLT trades at 1x book value and offers a 6.3% yield. The report recommends an “Accumulate” rating on MLT with a consensus one-year target price of S\$1.56, implying a potential return of 23% while noting limited downside risks given its proximity to Covid-19 lows.

City Developments Limited (CDL)

City Developments Limited (CDL), trading at S\$5.05, has achieved over S\$600 million in total divestments as part of its capital recycling initiative. Notable divestments include the Ransome’s Wharf site in London, various strata units in Singapore, and the retail and office components of the Hong Leong City Center (HLCC) in Suzhou. The Ransome’s Wharf site was sold for £69.08 million (approximately S\$115.3 million), representing a gain from its acquisition price of £58 million in 2017.

HLCC, completed in 2018, comprises residential towers, SOHO apartments, a Grade A office tower, a retail mall, and a lifestyle hotel. CDL has already received 15% of the sale consideration and expects to complete the transaction in Q1 2025. These divestments reflect CDL’s focus on optimizing its capital management and aligning its portfolio with strategic objectives to maximize shareholder value.

Trading at 16.5x forward PE and 0.5x PB, with a dividend yield of 1.6%, CDL’s consensus target price is S\$6.98, representing a significant upside of 38%. The report maintains a “BUY” recommendation, emphasizing CDL’s ongoing efforts to monetize its RNAV of S\$17.17 and its attractive valuation.

Frasers Logistics & Commercial Trust (FLCT)

Although briefly mentioned in the fund flow data, FLCT was a notable player in the retail investor net buy segment with a positive S\$2.2 million inflow. This reflects strong interest in REITs, driven by their resilience and income potential. Investors should keep an eye on FLCT’s financial announcements in the coming weeks.

Other Highlights

The report also offers insights into market trends, fund flows, and institutional activity:

• Institutional investors showed strong interest in OCBC, UOB, and DBS, with net buys of S\$60.6 million, S\$55.1 million, and S\$51 million respectively.
• Retail investors favored CapitaLand Investment, SGX, and Singtel, with net buys of S\$49.6 million, S\$25.3 million, and S\$13.4 million respectively.

Dividends and Special Distributions

The report lists several companies offering dividends and special distributions, including:

• Frasers Property Ltd: 4.5 cents final dividend, ex-date January 23, payable February 14.
• PNE Industries Ltd: 2 cents final dividend, ex-date January 27, payable February 14.
• BRC Asia: 8 cents final and 6 cents special dividend, ex-date April 30, payable May 15.

Upcoming Financial Announcements

Investors should watch out for upcoming financial results from key companies such as Mapletree Logistics Trust (January 21), Ascendas REIT (February 6), and DBS (February 10). These announcements may provide critical insights into their performance and outlook.

Conclusion

The Lim & Tan Securities report for January 17, 2025, offers a wealth of information for investors. With comprehensive analyses, actionable recommendations, and detailed fund flow data, it provides a valuable resource for understanding the Singapore market and identifying opportunities. Investors are encouraged to align these insights with their investment strategies to capitalize on potential growth.

Broker: Lim & Tan Securities

Date of Report: January 17, 2025