Bukit Sembawang Estates
Price – $6.17
Target – $8.55

Bukit Sembawang Estates’ (BSE) FY18 revenue of $98m was in line with our estimate but the higher-than-expected EBITDA margin of 60% resulted in earnings that exceeded our forecast. While the lower declared DPS of $0.18 was slightly negative, management’s preference to conserve cash allows the group to pay down financing for its newly-acquired sites. In late Mar-18, BSE acquired Makeway View, a prime freehold property near Newton Circus which could add another 154 units to its high-rise inventory. The vendor’s asking price of $168m was reasonable in comparison to recent deals in the vicinity. BSE has a good mix of condominium projects and landed housing totalling approximately $2.6b worth of development pipeline to ride the recovering housing market, and we expect revenue recognition from these projects to drive a clear rebound in earnings over the next few years. Reiterate BUY. Maybank Kim Eng (25 May)

Dasin Retail Trust
Price – $0.86
Target – $0.97

Dasin Retail Trust’s (DRT) 1Q18 revenue and NPI were within expectation with the boost in revenue coming from the acquisition of Shiqi Metro Mall in Jun-17 while a 10-year renewal of the Xiaolan Master Lease Agreement for Superior City Department Store contributed to the positive rental reversions. However, higher amount of funds retained for future interest repayment led to the underperformance of the DPU. DRT’s inorganic growth can be achieved through its pipeline of 20 properties which it has the right-of-first-refusal, out of which 13 have been completed and seven are still under development. The robust growth of Zhongshan’s purchasing power as well as the expected opening of the Hong Kong-Zhuhai-Macau bridge in Jul-18 are potential catalysts to raise rental rates and property valuations for DRT. In addition, DRT’s current four malls operating at 100% occupancy would continue to drive healthy organic growth. We expect DRT’s baseline rental CAGR of 6% and potential acquisitions to compensate for the removal of income support after FY2021. Maintain BUY. Phillip Securities (25 May)

Price – $3.34
Target – $4.22

Telstra’s mobile network suffered three outages in May and Optus is likely to benefit at the former’s expense as the widespread disappointment may led to consumers flocking to its services. In 4Q18, Optus gained market share with a net addition of 101,000 post-paid mobile customers while post-paid ARPU was also stable at A$44. We saw Optus adopting the right strategy in Australia over the past few years through focusing on network quality by stepping up capital expenditure to enhance the breadth and depth of its coverage, as well as differentiating through bundling captivating content such as English Premier League, National Geography and Cricket Australia. Hence, Optus is likely to maintain its growth momentum and is the largest contributor to Singtel’s earnings accounting for 28.5% of its profit before tax in 4Q18. Furthermore, Singtel’s intention to maintain dividends at $0.175 for the next two financial years demonstrated management’s confidence that the group’s earnings would not be unduly affected by the increased competition. Maintain BUY. UOB-Kay Hian (24 May)

Yongnam Holdings
Price – $0.31
Target – $0.56

Yongnam Holdings’s (Yongnam) JV with Leighton Contractors won the contract to design and construct the North-South Corridor, a 0.64km stretch between Kampong Java Road and Suffolk Walk. The job awarded would bring the group’s order book to $358m above its 3-year average of $290m, including $50m in strut works on top of the contract value. Meanwhile, there could be an opportunity for Yongnam to be subcontracted for the strutting works of the other two packages for the North-South Corridor project awarded to Samsung C&T in Nov-17, which could fetch another $50m each based on our estimates. In addition, Yongnam is currently actively tendering for $1.1b of new projects in Singapore and overseas including Melbourne Metro project and other civil engineering and strut orders for infrastructure projects. Trading at valuations below its long-term average, we maintain our Add call considering that further contract win would result in re-rating of the stock. Maintain ADD. CIMB Research (23 May)