External broker reports(aggregated public sources), Hong Leong Investment Bank Berhad

Hong Leong Investment Bank Berhad

External broker reports(aggregated public sources)

Hong Leong Investment Bank Berhad operates as an investment banking company. The Company provides debt and equity funding, private debt securities issuance, merger and acquisitions, initial public offerings, corporate restructuring, and stockbroking services. 

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Equity Bottom-Up

Hektar Real Estate Investment Trust / Equity Bottom-Up

<ul><li>Hektar’s 1Q24 core net profit came in at RM5.1m (+1.4x QoQ, -44.8% YoY). This came in below ours and consensus estimates at 16% of full year forecast.</li><li>The negative deviation was due to higher-than-expected finance costs. In view of the results shortfall, we cut our FY24/25 forecasts by -5.4%/-5.2%.</li><li>We also introduce FY26 forecasts. Besides, the increase in units in circulation after its private placement has resulted in our forecasted FY24/25 EPU to decline by -22%/-23% post earnings cut due to dilution. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Hektar’s 1Q24 core net profit came in at RM5.1m (+1.4x QoQ, -44.8% YoY). This came in below ours and consensus estimates at 16% of full year forecast.The negative deviation was due to higher-than-expected finance costs. In view of the results shortfall, we cut our FY24/25 forecasts by -5.4%/-5.2%.We also introduce FY26 forecasts. Besides, the increase in units in circulation after its private placement has resulted in our forecasted FY24/25 EPU to decline by -22%/-23% post earnings cut due to dilution. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<ul><li>Hektar’s 4Q23 results came in at RM2.1m (-69.1% QoQ, -17.9% YoY), bringing FY23 sum to RM25.1m (-29.3% YoY).</li><li>We deem the results to be below ours and consensus expectations at 83% and 79% respectively.</li><li>The negative deviation was due to higher trust and finance expenses.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Hektar’s 4Q23 results came in at RM2.1m (-69.1% QoQ, -17.9% YoY), bringing FY23 sum to RM25.1m (-29.3% YoY).We deem the results to be below ours and consensus expectations at 83% and 79% respectively.The negative deviation was due to higher trust and finance expenses.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<ul><li>Hektar’s 3Q23 results came in at RM6.8m (-2.0% QoQ, -62.9% YoY), bringing 9M23 sum to RM23m (-39.2% YoY).</li><li>We deem the results to be within ours but below consensus expectations at 76.2% and 66.1% respectively.</li><li>Despite increased occupancy rate, tenant sales could stay muted as consumers remain prudent on discretionary spending.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Hektar’s 3Q23 results came in at RM6.8m (-2.0% QoQ, -62.9% YoY), bringing 9M23 sum to RM23m (-39.2% YoY).We deem the results to be within ours but below consensus expectations at 76.2% and 66.1% respectively.Despite increased occupancy rate, tenant sales could stay muted as consumers remain prudent on discretionary spending.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<ul><li>Hektar has proposed to acquire the building and facilities of KYS College at a purchase consideration of RM150m, to be partially satisfied via 20% placement of existing issued units.</li><li>The property is being leased to KYSA Education Sdn Bhd (operator of KYS College), commencing from 22 June-23 on a quadruple-net lease basis for 30 years with a guaranteed rent of RM8.1m for the first year, followed by a 2.5% annual step up.</li><li>Based on our estimation, the deal is expected to enhance our FY23f forecasted core net profit by 18.9%. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Hektar has proposed to acquire the building and facilities of KYS College at a purchase consideration of RM150m, to be partially satisfied via 20% placement of existing issued units.The property is being leased to KYSA Education Sdn Bhd (operator of KYS College), commencing from 22 June-23 on a quadruple-net lease basis for 30 years with a guaranteed rent of RM8.1m for the first year, followed by a 2.5% annual step up.Based on our estimation, the deal is expected to enhance our FY23f forecasted core net profit by 18.9%. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<ul><li>We initiate coverage on Hektar with a HOLD recommendation and TP of RM0.60, based on FY24f DPU at a targeted yield of 11%.</li><li>We project Hektar’s earnings to grow by 9.5%/8.2%/3.5% for FY23f/FY24f/FY25f – mainly driven by expansion in occupancy rate offsetting the slight negative rental reversion.</li><li>Our forecasts imply a divvy yield of 9.0%/9.8%/10.1% for the corresponding periods.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We initiate coverage on Hektar with a HOLD recommendation and TP of RM0.60, based on FY24f DPU at a targeted yield of 11%.We project Hektar’s earnings to grow by 9.5%/8.2%/3.5% for FY23f/FY24f/FY25f – mainly driven by expansion in occupancy rate offsetting the slight negative rental reversion.Our forecasts imply a divvy yield of 9.0%/9.8%/10.1% for the corresponding periods.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Malaysia

Hektar Real Estate Investment Trust acquires and invests in income producing real estate in Malaysia.

Hektar Real Estate Investment Trust (HEKT MK)

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Hektar Real Estate Investment Trust (HEKT MK)

Hektar REIT - Impacted by Higher Costs

Hektar’s 1Q24 core net profit came in at RM5.1m (+1.4x QoQ, -44.8% YoY). This came in below ours and consensus estimates at 16% of full year forecast.

Hong Leong Investment Bank Berhad

Hektar REIT - Weaker End to FY23

We deem the results to be below ours and consensus expectations at 83% and 79% respectively. The negative deviation was due to higher trust and...

Hong Leong Investment Bank Berhad

Hektar REI - Results in Line

Hektar’s 3Q23 results came in at RM6.8m (-2.0% QoQ, -62.9% YoY), bringing 9M23 sum to RM23m (-39.2% YoY). We deem the results to be within ours but...

Hong Leong Investment Bank Berhad

Hektar REIT - Foray into Education Asset

Hektar has proposed to acquire the building and facilities of KYS College at a purchase consideration of RM150m, to be partially satisfied via 20%...

Hong Leong Investment Bank Berhad

Hektar REIT - Poised for Steady Recovery

We initiate coverage on Hektar with a HOLD recommendation and TP of RM0.60, based on FY24f DPU at a targeted yield of 11%.

Hong Leong Investment Bank Berhad

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