1.) CapitaLand Investment Limited (CLI):
CLI continues to trade at 0.9x P/B with a dividend yield of 4.7% and holds a consensus target price of \$3.55, suggesting a 39% upside potential. The report maintains an “Accumulate” rating on CLI, forecasting a special dividend payment alongside the usual dividend per share.
Singapore Stock Market Update: CapitaLand Investment Sells Stake in Ascott Trust, Key Market Movements and Fund Flows
2.) Mynews Holdings:
The fourth quarter of FY24 saw a net profit of MYR 4 million, marking a remarkable 297% year-on-year growth and a 43% increase quarter-on-quarter. This performance resulted in an annual net profit of MYR 9 million, a significant turnaround from a net loss of MYR 11 million in FY23. The revenue for FY24 reached MYR 804 million, a 10% increase from the previous year, aligning with the projected estimates.
Maybank maintains its earnings estimates for FY25-FY26, projecting a 102% year-on-year growth in FY25, driven by stronger sales volume and improved group margins. The company targets to open 100 new stores in FY25, adding to its existing 644 stores, which include Mynews, CU, Maru Coffee, and WH Smith outlets.
Investment Recommendation
With a 12-month price target of MYR 0.80, representing a 17% upside from the current MYR 0.69, the report reiterates a “BUY” recommendation for Mynews Holdings. The recommendation is based on a CY25E PER of 32x, aligning with the normalized mean from 2016-2018.
Mynews Holdings: Strong Q4 Results Signal Positive Outlook for Malaysian Convenience Store Chain
3.) The REIT sector has been weighed down by shifting expectations around interest rate cuts, which have significantly influenced bond yields.
Earlier optimism for up to six rate cuts by 2025 waned as bond yields climbed, with the 10-year yield hovering near 4.5%. Market players now expect just two rate cuts by 2025, leading to renewed pressure on REIT prices.
However, Gerald Wong, CEO of investment platform Beansprout, sees opportunity amid these challenges. Speaking to The Edge Singapore, Wong noted that current conditions create an “interesting risk-reward profile” for savvy investors in Singapore’s REIT market.
Wong emphasized that investors should focus on REITs capable of maintaining or growing their distributions even amid modest rate movements. He identified three standout REITs with promising risk-reward profiles: OUE REIT, Elite UK REIT, and AIMS APAC REIT.
Singapore’s Straits Times Index Hits 17-Year High, Analysts Spot REIT Opportunities Amid Rate Volatility
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