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

Public Investment Bank Bhd

External broker reports(aggregated public sources)

Public Investment Bank Berhad provides investment banking services. The Company offers corporate finance, banking, securities financing, capital market, treasury, and advisory 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.

Equity Bottom-Up

<ul><li>Reference is made to the previous announcements made by WCT on the acceptance of the LoA issued by PNB Merdeka Ventures SB in respect of the main contract work for a shopping complex jointly by its wholly owned subsidiary, WCT and TSR Capital (TSR) and the incorporation of WCT TSR SB in the equity ratio of 51:49 to undertake and complete the contract.</li><li>We have gathered that there would be no material impact to WCT’s gearing and earnings from this development.</li><li>Thus, we maintain our Outperform call on WCT with an unchanged SOP-based TP of RM0.50, pegged at 15x PER given WCT’s competence within the infrastructure construction space.</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>

Reference is made to the previous announcements made by WCT on the acceptance of the LoA issued by PNB Merdeka Ventures SB in respect of the main contract work for a shopping complex jointly by its wholly owned subsidiary, WCT and TSR Capital (TSR) and the incorporation of WCT TSR SB in the equity ratio of 51:49 to undertake and complete the contract.We have gathered that there would be no material impact to WCT’s gearing and earnings from this development.Thus, we maintain our Outperform call on WCT with an unchanged SOP-based TP of RM0.50, pegged at 15x PER given WCT’s competence within the infrastructure construction space.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.

WCT Holdings Berhad - Took Over PNB 118 Mall Job

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/esr-reit" target="_blank" data-smartkarma-citation="entities:10934" rel="noopener">ESR-REIT (EREIT SP)</a> and <a href="https://www.smartkarma.com/entities/ara-logos-logistics-trust" target="_blank" data-smartkarma-citation="entities:937" rel="noopener">ARA LOGOS (ALLT SP)</a> proposed merger to form ESR-LOGOS REIT; DPU accretive for both unitholders</h3>
<ul>
<li>The proposed merger will be effected by way of a Trust Scheme with EREIT acquiring all units of ALLT in exchange for a combination of cash and new units in EREIT. The merger is conditional upon, inter alia, the completion of ESR Cayman (“ESR” or the “Sponsor”) and ARA Asset Management’s merger. ALLT unitholders will receive a scheme consideration of S$0.95 for each ALLT unit comprising 1) the payment of S$0.095 in cash per ALLT unit and the allotment and issue of 1.6765 new EREIT units for each ALLT unit, issued at S$0.51. The total consideration for the proposed merger is ~S$1.4bn based on the Scheme Consideration of S$0.95 for each ALLT unit. Upon completion, the enlarged REIT will be renamed ESR-LOGOS REIT (E-LOG)</li>
<li>Post-merger, E-LOG will continue to be managed by EREIT manager. The shareholding structure of E-LOG will be: Summit Group (12.7%), ESR (10.9%), and public (76.4%). The merger also removes any potential overlapping mandate between EREIT and ALLT</li>
<li>From EREIT’s perspective, the merger is expected to be +5.8% DPU accretive on FY20 proforma basis and -6.4% NAV dilutive. From ALLT perspective, the merger is +8.2% DPU accretive on FY20 proforma basis and +2.2% NAV accretive as well</li>
<li>The effects of the merger: 1) Total assets will rise to 87 properties (S$5.4bn) with 2.2m sqft NLA and 437 tenants; 2) ~66% of portfolio exposure is in the new economy (logistics and hi-tech); 3) Rising occupancy to 94.5% (from 91.7%); 4) Increased WALE to 3.2yrs (from 2.8yrs); 5) Extend land lease expiry to 37.9yrs (from 31yrs); 6) lower cost of debt to 2.84% (from 3.24%) with longer WADE; and 7) +1.6x larger debt headroom</li>
<li>Unitholders’ approval for EREIT is required for both merger and issuance of units (&gt;50% of total number votes), while approval for ALLT are required for the scheme (&gt;50% in numbers, &gt;75% in value) and amendment of deed (&gt;=75%). Ivanhoe Cambridge Asia (holder of 8.74% of ALLT) has given an irrevocable undertaking to vote in favour of all resolutions</li>
<li>EREIT is trading at 1.17x P/B and 6.7% FY21E yield, while ALLT is trading at 1.39x P/B and 5.5% FY21E yield</li>
<li>The financing scheme and timeline is detailed on table below (illustrative purpose).</li>
</ul>

Singapore

ESR-REIT (EREIT SP) and ARA LOGOS (ALLT SP) proposed merger to form ESR-LOGOS REIT; DPU accretive for both unitholders

The proposed merger will be effected by way of a Trust Scheme with EREIT acquiring all units of ALLT in exchange for a combination of cash and new units in EREIT. The merger is conditional upon, inter alia, the completion of ESR Cayman (“ESR” or the “Sponsor”) and ARA Asset Management’s merger. ALLT unitholders will receive a scheme consideration of S$0.95 for each ALLT unit comprising 1) the payment of S$0.095 in cash per ALLT unit and the allotment and issue of 1.6765 new EREIT units for each ALLT unit, issued at S$0.51. The total consideration for the proposed merger is ~S$1.4bn based on the Scheme Consideration of S$0.95 for each ALLT unit. Upon completion, the enlarged REIT will be renamed ESR-LOGOS REIT (E-LOG)
Post-merger, E-LOG will continue to be managed by EREIT manager. The shareholding structure of E-LOG will be: Summit Group (12.7%), ESR (10.9%), and public (76.4%). The merger also removes any potential overlapping mandate between EREIT and ALLT
From EREIT’s perspective, the merger is expected to be +5.8% DPU accretive on FY20 proforma basis and -6.4% NAV dilutive. From ALLT perspective, the merger is +8.2% DPU accretive on FY20 proforma basis and +2.2% NAV accretive as well
The effects of the merger: 1) Total assets will rise to 87 properties (S$5.4bn) with 2.2m sqft NLA and 437 tenants; 2) ~66% of portfolio exposure is in the new economy (logistics and hi-tech); 3) Rising occupancy to 94.5% (from 91.7%); 4) Increased WALE to 3.2yrs (from 2.8yrs); 5) Extend land lease expiry to 37.9yrs (from 31yrs); 6) lower cost of debt to 2.84% (from 3.24%) with longer WADE; and 7) +1.6x larger debt headroom
Unitholders’ approval for EREIT is required for both merger and issuance of units (&gt;50% of total number votes), while approval for ALLT are required for the scheme (&gt;50% in numbers, &gt;75% in value) and amendment of deed (&gt;=75%). Ivanhoe Cambridge Asia (holder of 8.74% of ALLT) has given an irrevocable undertaking to vote in favour of all resolutions
EREIT is trading at 1.17x P/B and 6.7% FY21E yield, while ALLT is trading at 1.39x P/B and 5.5% FY21E yield
The financing scheme and timeline is detailed on table below (illustrative purpose).


External broker reports(aggregated public sources), TA Securities Holdings Berhad

TA Securities Holdings Bhd

<p>Intends to Tap into the Sabah Tourism Sector Last Traded: RM0.69 [...] Enters into a Principal Agreement to Acquire Options for Land [...] Upon execution of the principal agreement, WCTPSB shall pay YS a total sum of RM8.4mn as an earnest deposit. [...] We are positive about the proposed agreement as it allows WCT to establish a stronger presence in Sabah. [...] Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.</p><div class="content-highlight"><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></div>

Intends to Tap into the Sabah Tourism Sector Last Traded: RM0.69 [...] Enters into a Principal Agreement to Acquire Options for Land [...] Upon execution of the principal agreement, WCTPSB shall pay YS a total sum of RM8.4mn as an earnest deposit. [...] We are positive about the proposed agreement as it allows WCT to establish a stronger presence in Sabah. [...] Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.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.

Intends to Tap into the Sabah Tourism Sector

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/yanlord-land-group-ltd" target="_blank" data-smartkarma-citation="entities:14152" rel="noopener">Yanlord Land (YLLG SP)</a> Sep21 contracted pre-sales fell 47% YoY; 9M21 pre-sales fell 31% YoY</h3><p>In Sep21, total contracted pre-sales from residential and commercial units, and car parks amounted to ~RMB2.87bn on contracted GFA of 102,946sqm, a decrease of 47.1% and 35.3% YoY, respectively. For 9M21, total contracted pre-sales from residential and commercial units, and car parks was ~RMB36.77bn on contracted GFA of 1,184,291sqm, a decrease of 30.9% and 17.7% YoY, respectively. In addition, a total of ~RMB3.06bn of subscription sales was recorded as at 30Sep21 and is expected to be subsequently turned into contracted pre-sales in the following months</p><p>In Sep21, the total contracted pre-sales of other property development projects under the Group’s project management business was ~RMB348m on contracted GFA of 10,506sqm. For 9M21, the total contracted pre-sales of other property development projects under the Group’s project management business was ~RMB11.622bn on contracted GFA of 251,792sqm</p>

SingaporeYanlord Land (YLLG SP) Sep21 contracted pre-sales fell 47% YoY; 9M21 pre-sales fell 31% YoYIn Sep21, total contracted pre-sales from residential and commercial units, and car parks amounted to ~RMB2.87bn on contracted GFA of 102,946sqm, a decrease of 47.1% and 35.3% YoY, respectively. For 9M21, total contracted pre-sales from residential and commercial units, and car parks was ~RMB36.77bn on contracted GFA of 1,184,291sqm, a decrease of 30.9% and 17.7% YoY, respectively. In addition, a total of ~RMB3.06bn of subscription sales was recorded as at 30Sep21 and is expected to be subsequently turned into contracted pre-sales in the following monthsIn Sep21, the total contracted pre-sales of other property development projects under the Group’s project management business was ~RMB348m on contracted GFA of 10,506sqm. For 9M21, the total contracted pre-sales of other property development projects under the Group’s project management business was ~RMB11.622bn on contracted GFA of 251,792sqm

<h2>Singapore</h2><h3>Park Hotel Farrer Park relaunches under Holiday Inn brand</h3><p>The 300-room Park Hotel Farrer Park, owned by RB Capital and previously managed by Park Hotel Group, has been renamed Holiday Inn Singapore Little India. Its new manager, IHG Hotels &amp; Resorts, now manages three of RB Capital's Singapore hotels, totalling nearly 1,000 keys. The other two are Holiday Inn Express Clarke Quay, opened in 2014, and InterContinental Singapore Robertson Quay, opened in 2017. IHG operates 11 hotels in Singapore across a range of brands including Regent, InterContinental, Crowne Plaza, Hotel Indigo and Holiday Inn. There had been a few more years remaining on the management contract for Park Hotel Farrer Park, but due to the current situation with Park Hotel Management, RB Capital decided to sign on IHG to manage the property on a long-term basis.</p>

SingaporePark Hotel Farrer Park relaunches under Holiday Inn brandThe 300-room Park Hotel Farrer Park, owned by RB Capital and previously managed by Park Hotel Group, has been renamed Holiday Inn Singapore Little India. Its new manager, IHG Hotels &amp; Resorts, now manages three of RB Capital's Singapore hotels, totalling nearly 1,000 keys. The other two are Holiday Inn Express Clarke Quay, opened in 2014, and InterContinental Singapore Robertson Quay, opened in 2017. IHG operates 11 hotels in Singapore across a range of brands including Regent, InterContinental, Crowne Plaza, Hotel Indigo and Holiday Inn. There had been a few more years remaining on the management contract for Park Hotel Farrer Park, but due to the current situation with Park Hotel Management, RB Capital decided to sign on IHG to manage the property on a long-term basis.

Malaysia

WCT Holdings Berhad provides civil engineering, specializing in earthworks, highway construction, and related infrastructure works.  The Company also operates in property investment and development as well as trades building materials.

WCT Holdings (WCTHG MK)

WCT Holdings Berhad - Took Over PNB 118 Mall Job

Thus, we maintain our Outperform call on WCT with an unchanged SOP-based TP of RM0.50, pegged at 15x PER given WCT’s competence within the...

Public Investment Bank Bhd

ASEAN Builder's Scoop (15Oct21)

EREIT/ALLT merger, DPU accretive for both unitholders; AAREIT strong quarter, Upgrade to BUY; Porcelain Hotel on sale for S$90m; WCTHG mixed-use...

SCCM Asia Research

Intends to Tap into the Sabah Tourism Sector

<p>Intends to Tap into the Sabah Tourism Sector Last Traded: RM0.69 [...] Enters into a Principal Agreement to Acquire Options for Land [...] Upon...

TA Securities Holdings Bhd

ASEAN Builder's Scoop (7Oct21)

YLLG Sep21 presales fell 47% YoY; GCB sales on track to reach 10yr high; MEG earmarks PHP98bn for Bulacan biz district; Indo prop poised for...

SCCM Asia Research

ASEAN Builder's Scoop (8Sep21)

Park Hotel Farrer Park relaunched under IHG; AAREIT new CEO-designate; BSDE invests in DC business; WCTHG selling non-core assets; Phils Aug...

SCCM Asia Research