▌What’s on the Table…


Koufu Group Ltd (HOLD, tp:SGD0.70) – Awaiting the feast
We expect Koufu’s revenue to return to pre-Covid after FY22F with gradual border reopening and structural shift towards hybrid home/office work model. The commencement of integrated facility is also delayed to 3Q21F (from 2Q21F) due to the recent tightened measures. Margin expansion postponed. The worst could be over, but recovery takes time. Downgrade to Hold and TP powered to S$0.71, now based on 17x FY22F P/E at c.20% discount to peers.


▌News of the Day…


• MDR unit to enter mobile virtual network operator business in July
• KTL Global to acquire Tianci Agritech for S$200,00 as it expands into fresh food supply
• No change to Straits Times Index components after June review
• CFM to acquire 51% stake in firm distributing and selling pharma products
• Hiap Seng to sell entire 80% stake in UAE subsidiary for 2.7m dirham
• Sembcorp prices S$400m green bonds due 2031 at 2.45%
• CDL reported to have filed for S$940m S-Reit IPO
• Ascendas Reit to divest three properties in Australia for S$128.7m
• UMS’ offer for JEP closes with 71.66% valid acceptances
• HDB resale prices climb for 11th straight month in May: SRX