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Boustead Singapore Ltd – Eyes on order replenishment in 2HFY22F

ADD – Maintained | SGD1.02 TP: SGD1.400

■   1HFY3/22 slightly above expectations, net profit largely stable (-2% yoy) as stronger property segment offset energy engineering segment’s weakness.
■   Earnings for FY22F could stay lacklustre as geospatial segment faces tough comparative base, while other segments’ order backlogs are lower yoy.
■   Valuation is the key draw – stripping off its stake in Boustead Projects and net cash holdings, investors are paying only c.4x P/E for its geospatial unit.

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Ascendas REIT – Transforming 1 Science Park Drive

ADD – Maintained | SGD3.10 TP: SGD3.310

■   AREIT and CLD have formed a 34/66 JV to redevelop 1 Science Park Drive.
■   When completed, the exercise could boost AREIT’s proforma DPU by 0.5%.
■   Reiterate Add rating with an unchanged TP of S$3.31.  

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APAC Realty Ltd – Still going strong in 3Q

ADD – Maintained | SGD0.835 TP: SGD0.996

■   9M21 net profit of S$26.1m was ahead of our expectation, at 85% of our FY21F forecast.
■   Higher commissions across all market segments boosted 9M21 performance.
■   Reiterate Add rating with a higher TP of S$0.996.  

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Boustead Projects Limited – Recovering from Covid-19 depths

ADD – Maintained | SGD0.99 TP: SGD1.400

■   1HFY3/22 net profit of S$5.9m above expectations, thanks to a more normalised revenue recognition due to resumption of construction activities.
■   Operating environment remains challenging in 2H22F due to elevated costs; margins should improve in FY23F as pre-pandemic contracts are fulfilled.
■   BP has a strong war chest to chart its next leg of growth by expanding its presence in Vietnam. Reiterate Add and TP of S$1.40.

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First Resources Ltd – On track for stronger 4Q21F earnings

ADD – Maintained | SGD1.58 TP: SGD1.760

■   9M21 underlying net profit grew 6% yoy to US$83m, above our expectation.
■   We project 4Q21F earnings to remain strong, driven by higher CPO prices.
■   We raise our TP to S$1.76 as we raise our earnings forecasts to reflect higher CPO price assumptions. Reiterate Add.