Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/capitaland-ltd" target="_blank" data-smartkarma-citation="entities:55" rel="noopener">Capitaland (CAPL SP)</a> shares debut at S$2.95/share; Total RE AUM at S$119bn</h3><p>CLI made its trading debut at S$2.95/share (US$11.4bn market cap) on the Singapore Exchange under the trading name CapitaLandInvest. CLI takes over from CapitaLand Limited, which ceased trading at S$4.00 and will delist from the SGX on 21Sep. For every 100 CapitaLand shares owned, shareholders received 100 shares of CLI, S$95.10 in cash and 15.5 units of CapitaLand Integrated Commercial Trust. The total implied consideration was S$4.102/share, with CLI shares valued at S$2.823 each. CLI's listing comes after CapitaLand Limited restructured business to form two distinct entities – CLI, the listed real estate investment management business; and CapitaLand Development, the privatised property development arm. The former had about S$119bn of RE AUM as at 30Jun21, of which more than 80% are located in Asia. Its real estate funds under management stood at about S$83bn, spanning six listed real estate investment trusts and business trusts and over 20 private funds.</p>

SingaporeCapitaland (CAPL SP) shares debut at S$2.95/share; Total RE AUM at S$119bnCLI made its trading debut at S$2.95/share (US$11.4bn market cap) on the Singapore Exchange under the trading name CapitaLandInvest. CLI takes over from CapitaLand Limited, which ceased trading at S$4.00 and will delist from the SGX on 21Sep. For every 100 CapitaLand shares owned, shareholders received 100 shares of CLI, S$95.10 in cash and 15.5 units of CapitaLand Integrated Commercial Trust. The total implied consideration was S$4.102/share, with CLI shares valued at S$2.823 each. CLI's listing comes after CapitaLand Limited restructured business to form two distinct entities – CLI, the listed real estate investment management business; and CapitaLand Development, the privatised property development arm. The former had about S$119bn of RE AUM as at 30Jun21, of which more than 80% are located in Asia. Its real estate funds under management stood at about S$83bn, spanning six listed real estate investment trusts and business trusts and over 20 private funds.

External broker reports(aggregated public sources), Kenanga Investment Bank Bhd

Kenanga Investment Bank Bhd

External broker reports(aggregated public sources)

Established for more than 45 years, Kenanga Investment Bank Berhad is a financial group in Malaysia with extensive experience in equity broking, investment banking, treasury, Islamic banking, listed derivatives, investment management, wealth management, structured lending and trade financing. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>SIME is acquiring the entire equity stake in Cavpower Group (Cavpower), a Caterpillar (CAT) dealer, for an enterprise value (EV) of AUD500m (RM1,494.8m).</li><li>The acquisition will strengthen SIME’s presence in the booming mining and infrastructure sectors in Australia and is earnings accretive to the tune of 5%.</li><li>We keep our earnings forecasts, TP of RM2.40 and OUTPERFORM call pending the completion of the deal.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

SIME is acquiring the entire equity stake in Cavpower Group (Cavpower), a Caterpillar (CAT) dealer, for an enterprise value (EV) of AUD500m (RM1,494.8m).The acquisition will strengthen SIME’s presence in the booming mining and infrastructure sectors in Australia and is earnings accretive to the tune of 5%.We keep our earnings forecasts, TP of RM2.40 and OUTPERFORM call pending the completion of the deal.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sime Darby -  Acquiring Australian Caterpillar Dealer

External broker reports(aggregated public sources), Hong Leong Investment Bank Berhad

Hong Leong Investment Bank Berhad

Hong Leong Investment Bank Berhad operates as an investment banking company. The Company provides debt and equity funding, private debt securities issuance, merger and acquisitions, initial public offerings, corporate restructuring, and stockbroking services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Post management update, we remain positive on Sime’s outlook, underpinned by the continued strong Industrial segment (especially Australia) with RM4.7bn orderbook.</li><li>While China motors segment may remain weak (due to pricing discount competitions) in the near term, management guided demand for other markets remain encouraging with sustainable margins.</li><li>Sime has also seen material uptake of EV sales within the group. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Post management update, we remain positive on Sime’s outlook, underpinned by the continued strong Industrial segment (especially Australia) with RM4.7bn orderbook.While China motors segment may remain weak (due to pricing discount competitions) in the near term, management guided demand for other markets remain encouraging with sustainable margins.Sime has also seen material uptake of EV sales within the group. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sime Darby - Backed by Australia Industrial Segment

<ul>
<li>SIME has proposed to divest its entire stake in Weifang Port companies for RMB1.92b (MYR1.27b) cash, marking its full exit from the non-core seaport business.</li>
<li>We view the exit positively, in line with SIME’s strategy to redeploy capital to its core Automotive and Industrials businesses.</li>
<li>We keep our FY22E/FY23E earnings forecasts for now. Reiterate OP. We keep our SoP-TP unchanged at RM2.60</li>
</ul>
<p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>


SIME has proposed to divest its entire stake in Weifang Port companies for RMB1.92b (MYR1.27b) cash, marking its full exit from the non-core seaport business.
We view the exit positively, in line with SIME’s strategy to redeploy capital to its core Automotive and Industrials businesses.
We keep our FY22E/FY23E earnings forecasts for now. Reiterate OP. We keep our SoP-TP unchanged at RM2.60

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sime Darby Berhad - Exiting Seaport Business

Malaysia

Sime Darby Berhad is an investment holding company. The Group's principal activities include plantations, property development, heavy equipment and motor vehicle distribution, and energy and utilities.

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Sime Darby (SIME MK)

ASEAN Builder's Scoop (21Sep21)

CLI debuts with S$119bn RE AUM; RLC developing 2 office towers in Bridgetowne; More townships for MEG in Luzon, Palawan; SIME reopens all sales...

SCCM Asia Research

Sime Darby - Acquiring Australian Caterpillar Dealer

SIME is acquiring the entire equity stake in Cavpower Group (Cavpower), a Caterpillar (CAT) dealer, for an enterprise value (EV) of AUD500m...

Kenanga Investment Bank Bhd

Sime Darby - Backed by Australia Industrial Segment

Post management update, we remain positive on Sime’s outlook, underpinned by the continued strong Industrial segment (especially Australia) with...

Hong Leong Investment Bank Berhad

Sime Darby Berhad - Exiting Seaport Business

SIME has proposed to divest its entire stake in Weifang Port companies for RMB1.92b (MYR1.27b) cash, marking its full exit from the non-core...

Kenanga Investment Bank Bhd

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