DBS Vickers Picks NOBLE-SENA as High-Dividend Property Stocks to Buy

As the economy continues to improve and several countries ease their Covid-19 restrictions, DBS Vickers Securities (DBSVS) has chosen two best real estate stocks to accumulate for the interim dividend payout.

DBSVS stated that there are opportunities in the real estate stock market that typically yield a good interim dividend. According to a preview of 2Q21 results, numerous businesses increased profits year-on-year as a result of 2020’s pretty low base.

Besides that, various countries across the world are reopening their borders to visitors in the aftermath of the successful Covid-19 vaccine campaign.

DBSVS anticipates the SET Index to trade in the range of 1,580-1,640 points this week, highlighting the Monetary Policy Committee meeting on June 23 regarding the benchmark policy rate as a major event to monitor this week. DBSVS believes the MPC will maintain the rate at 0.5%.

Also, the analyst mentioned the potential of institutions engaging in window dressing as the end of the second quarter approaches.

This week’s key events include the following: 1) the US bond yield, 2) a preview of second-quarter results, 3) OPEC+ policy, 4) stimulus packages around the world, 5) economic data from developing countries, and 6) the status of the license for hemp-cannabis cultivation.

NOBLE : “BUY” recommendation with a target price of ฿9.70/share, Upside 26%

Noble Development Public Company Limited (NOBLE) was assigned a “BUY” rating by DBSVS based on a projected interim dividend yield of 5%. NOBLE plans to launch 11 new projects totaling 45 billion baht in 2021, including four condominium projects valued at 25 billion baht and seven low-rise housing projects valued at 20 million baht. The company expects pre-sales to reach 16 billion baht (+142% YoY) and revenue to reach 11 billion baht in 2021. As of the end of March, the backlog stood at 13 billion baht.

DBSVS anticipates a sustained net profit of 1.9 billion baht this year, before improving significantly in 2022 and exploding in 2023 as a result of strong demand for low-rise property and condominium transfer.

Due to the fact that NOBLE has typically paid dividends twice a year, DBSVS predicts NOBLE will pay a total dividend of 0.80 baht per share, divided into 0.40 baht for an interim dividend and 0.40 baht for the second half of the year. Interim dividend yields of up to 5% are predicted, with full-year yields of up to 10%.

SENA : “BUY” recommendation with a target price of ฿5.35/share, Upside 27%

Senadevelopment Public Company Limited (SENA) is expected to offer an interim dividend yield of 3.6%. The company plans to open 17 new projects in 2021 worth 15.7 billion baht, compared to only 7 new projects launched last year. 

SENA targets a pre-sales of 11 billion baht in 2021, an increase of 28% YoY. DBSVS projects SENA’s sales volume and net income will improve in the second half of this year as a result of 1) new projects launch, 2) increased shared profit from joint venture companies, 3) economic recovery, 4) the transfer and mortgage fee reduction will expire at the end of the 2021.

DBSVS expects SENA to hand out a dividend payment for the year 2021 at 0.35 baht per share, which will be divided into 0.15 baht for interim payment and 0.20 baht for the second half of the year.