Sasseur REIT - Phillip Securities 2024-02-22: Resilient Balance Sheet & Low Onshore Rate

Sasseur REIT - Resilient Balance Sheet & Low Onshore Rate

Published:
Sasseur REIT (SGX:CRPU) | SGinvestors.ioSasseur REIT (SGX:CRPU)
  • Sasseur REIT (SGX:CRPU)'s FY23 rental income in S$ terms was within expectations (S$ 126.7mil, +0.6% y-o-y, +10.7% y-o-y in RMB. DPU was within our expectation at S$0.0625 for the whole year, representing a 4.6% decline y-o-y due to RMB depreciation of 7% in FY23. Keeping the exchange rate the same, DPU would have increased by ~4.1% y-o-y.
  • - Read this at SGinvestors.io -
  • Outlet sales in RMB were in line with our projection. It spiked 31.9% y-o-y to RMB4.6bn, leveraging on the consumption downtrading and various promotional events in FY23.
  • We reiterate our BUY recommendation on Sasseur REIT with a lower DDM target price of S$0.87 (previously S$0.90) on the back of a fading recovery tailwind and weaker-for-longer exchange rate. FY24e-FY25e DPU forecasts have been lowered by 2-3% to 6.36-6.67 Singapore cents.

The Positives

FY23 outlet sales up 31.7% (RMB4.7bn).

  • - Read this at SGinvestors.io -
  • Overall, sales reached 96.6% of their pre-COVID level. This trend is anticipated to continue, delivering a stronger FY24 performance.
  • We expect FY24 sales to grow in the low teens amidst the ongoing retail sales recovery and ongoing consumption downgrade.

Healthy operating metric.

  • Read more at SGinvestors.io.




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




Liu Miao Miao Phillip Securities Research | https://www.stocksbnb.com/ 2024-02-22



Read also Phillip's most recent report:
2024-05-15 Sasseur REIT - FY24e Sales Will Be Driven By Promotional Events.

Price targets by other brokers at Sasseur REIT Target Prices.

Listing of research reports at Sasseur REIT Analyst Reports.

Relevant links:
Sasseur REIT Share Price History,
Sasseur REIT Announcements,
Sasseur REIT Dividends & Corporate Actions,
Sasseur REIT News Articles





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