Selective Yield Plays Remain Attractive

Land transport stocks may experience margin squeeze due to higher electricity and diesel costs, but
their yields remain attractive. We have BUY calls on CD - ComfortDelgro(Target: S$2.00) and SMRT (Target: S$2.08),
with current FY yields of 6.6% and 4.8% respectively. In addition, Suntec REIT (Target: S$2.05), which
will record positive rental reversions going ahead, offers current FY yield of 5.8%. SPH (Target:
S$5.00), with profit recognition from Sky@Eleven over the next two years, also offer a high yield of
7.0%.