Frasers Hospitality Trust - Maybank Research 2023-02-10: Upbeat On Recovery; upgrade To BUY

• Upgrade Frasers Hospitality Trust (SGX:ACV) to BUY from HOLD due to improved sector outlook and strong results. Lowering DDM-based target price to S$0.54 (COE: 7%, LTG: 3%) due to inflation and rising interest rates.
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• Frasers Hospitality Trust’s current P/B of 0.67x is around -1 standard deviation level. The revised target price of S$0.54 implies a target P/B of 0.8x (historical mean since 2019).

Strong recovery underpins FY22 results

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• Singapore market saw ~50%/63% jump y-o-y in full-year gross operating revenue (GOR) and gross operating profit (GOP), respectively, led by strong recovery in hotel performance.
• Robust rebound in GOR was also seen in Malaysia (>100% y-o-y), the UK (>100% y-o-y) and Germany (~82% y-o-y), underpinned by strong performance in 2H22.

Japan market ready to catch up

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Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.ketrade.com.sg/.