Following GuocoLand’s win with its $1.62 billion bid for the Beach Road site, Maybank Kim Eng Research (MBKE) thinks it plans to build a 566,000 square feet office building and 300 800-square feet luxury apartments.
Although there are concerns that GuocoLand might need equity fundraising to finance the development, MBKE’s analysis gives analysts confidence that its “net gearing should remain comfortable”.
With these pieces of news, MBKE maintains their view that GuocoLand establishing a REIT platform “makes even more strategic sense” now. Moreover, MBKE looks at GuocoLand as a proxy for the Singapore market.
Maybank Kim Eng Research gives GuocoLand Limited (SGX: F17) a BUY call with a target price of $2.90.
On the back of a loan growth of 1.5% quarter-on-quarter and net interest margin increased to 1.66%, UOB Kay Hian Research (UOBKH) expects total fees and commissions to increase by 12% year-year-year to $479 million and $205 million in earnings from insurance operations.
Above are just a few of the many optimistic signs UOBKH sees for the local Chinese bank.
Apart from developments within the bank, UOBKH expects the upcoming Initial Public Offering (IPO) for Great Eastern Malaysia and dividends review to push its share price higher.
UOB Kay Hian Research gives Oversea-Chinese Banking Corporation Limited (SGX: O39) a BUY call with a target price of $13.38.
3. Venture Corporation
Over the past 15 quarters, Venture consistently delivered steady revenue growth and hitting a historical high in the recent quarter.
Its exposure to “attractive end-markets” in advancing niches has been giving Venture’s earnings growth a momentum while its CEO make share purchases openly since three months ago.
On top of robust earnings, DBS Research pointed out that we can expect better net margins ahead since Venture’s “tactical decision” to transform its business.
Venture’s dividend payouts for the past five years have been impressive and DBS Research analysts expect a 10% increase to $0.55 per share this year.
As such, DBS Research maintains its BUY call for Venture Corporation Limited (SGX: V03) with a target price of $21.00.