In today’s briefing:
- Sea Ltd: More Downside Risk at Earnings
- EC World REIT – One-Off Event Impacted DPU
- LHN Limited – 1H22 Results In-Line as Coliwoo Picks up the Pace
Sea Ltd: More Downside Risk at Earnings
- Sea Ltd (SE US) reports 1Q22 results tomorrow and we expect results to follow the overall sector’s trend of weak revenue growth but lower losses.
- Consensus 1Q22 revenue expectation was lowered in the last three months but there’s still a bit more downside due to Free Fire’s struggles.
- The biggest risk is the remaining three quarters of 2022 and the next year as consensus revenue seems too bullish with estimates of 42% revenue CAGR through 2021-23.
EC World REIT – One-Off Event Impacted DPU
- 1Q22 DPU below expectation: 1Q22 revenue and NPI rose by 4.4% and 7.4% YoY (0.7% and 3.2% QoQ) to S$32.2m and S$29.7m, respectively, largely due to RMB appreciation and step-up rents.
- +ve revenue growth across three segments: On a QoQ basis, revenues from all three segments – Port Logistics, Specialized Logistics and E-Commerce Logistics have reported +ve growth, largely due to step-up rents and strengthening RMB.
- Refinancing completion as a near-term catalyst: Mgmt. believes that it is very close to complete the refinancing exercise of its offshore facilities (~S$423m or 66% of total loans in FY22E), which will expire by end of May22.
LHN Limited – 1H22 Results In-Line as Coliwoo Picks up the Pace
- 1H22 results mixed as revenue slips, but adj. PATMI performs on JV contributions
- Recent logistics business listing paves the way for increased focus on co-living
- Maintain BUY with a lower TP of S$0.38/shr. In line with the recent market volatility, our revenue weighted peer-based TP falls to S$0.38/share.
Before it’s here, it’s on Smartkarma
